Proposed VAT on Betting Deposits in Colombia

The Colombian government has submitted to Congress a proposal to apply VAT to deposits made for online betting, as part of a broad tax reform bill. The proposal has not yet been approved and is open to legislative debate.

Under Article 41 of the Economic Recovery Law, offshore operators would also be responsible for VAT where the customer has a sufficient connection to Colombia. The scope covers money and crypto assets transferred to an online account in order to obtain the right to place bets. The draft sets the standard VAT rate at 19 percent. The taxable base would be found by dividing the amount deposited by 1.19. Under the bill, the tax paid by the operator would not be considered part of the bet, and eligible input VAT could be offset under the general rules.

The package also raises the fixed monthly tax bases for physical betting and gaming venues. The base for a slot machine in a casino would rise from 20 tax value units to 40, and that for a gaming table from 290 to 580. The base per bingo seat would increase from three to six. For slot machines in venues whose main activity is not gambling, the base is being raised from 10 units to 20. The tax rate on certain lottery, raffle and betting winnings is also being increased from 20 percent to 30 percent. The bill also gives the tax authority DIAN the power to block websites in specific cases involving non-compliance with technical control systems.

The Ministry of Finance estimates that VAT on online betting will raise about 560.22 million euros in 2027. The revenue table in the source shows an annual average of about 633.05 million euros for 2028 to 2030. These are projections and depend on the bill becoming law. According to the ministry, the change would reduce the tax differences between online and physical betting.

Fecoljuegos, the industry association, is reviewing the proposal and preparing its own tax recommendations for the ministry and Congress. The association's president, Evert Montero, warned that the additional burden could affect smaller operators more severely.