Colombia Proposes 19% VAT on Online Gambling Deposits

The Colombian government has submitted a bill that would impose a 19% value-added tax (VAT) on deposits made into online gambling accounts. The measure, which previously failed to win approval in Congress, is back on the agenda. The bill is part of a broad fiscal package that also raises taxes on prize payouts and some other products.

Bill 477/2026, titled the "Economic Recovery Law," was submitted to Congress by the Ministry of Finance on October 29. If the bill, prepared by the administration of President Abelardo de la Espriella, is approved, licensed online gambling operators will have to collect VAT whenever they add money to customers' accounts. Industry representatives have warned that the added cost could particularly strain small operators. As the bill moves through the legislative process, industry organizations are preparing alternative proposals.

Article 41 of the bill amends Article 420(e) of the Tax Code, subjecting online gambling deposits to the general 19% VAT rate. The tax will apply to transfers into accounts whether or not players place bets or win anything. The government's reuse of provisions from a tax reform rejected by Congress in 2025 has also raised questions. The government, which is in talks with the International Monetary Fund over financial support, is under pressure to get the law approved.

Juan Camilo Carrasco, managing partner of the law firm Sora Lawyers, said the bill is largely the same as the previous government's reform. Speaking to SiGMA News, Carrasco described it as a "repackaged reform." He noted that the online betting provision is identical to the reform rejected by Congress in 2025, and argued that the law could meet the same fate. He also criticized its provision concerning offshore operators.

Colombia had tried different methods to tax online gambling deposits. In February 2025, a temporary 19% VAT was applied as an emergency measure following the Catatumbo humanitarian crisis. An emergency decree in January 2026 changed the tax base to gross gaming revenue, but the Constitutional Court ruled that the state of emergency was unconstitutional. A decree issued in March reintroduced a 16% consumption tax based on investment. The new bill brings back the 19% VAT rate.