The Colombian government has put forward a proposal for a 19% value-added tax (VAT) on deposits made to online gambling accounts as part of a larger tax reform initiative submitted to Congress. This proposed measure is currently under review.
According to Article 41 of the Economic Rescue Law, gambling operators—regardless of whether they are based in Colombia or abroad—would be tasked with paying VAT on qualifying deposits made by players located within the country. The VAT will apply to both monetary transfers and crypto-assets deposited into online gambling accounts, enabling users to place bets. The taxable base for this VAT will be determined by dividing the deposit amount by 1.19.
The tax reform plan also suggests an increase in the front-taxable amounts for various land gambling operations. Specifically, the tax charge for casino slot machines would rise from 20 to 40 tax units, while the fee for playing tables is proposed to increase from 290 to 580 units. For bingo, the per-head fee would escalate from three to six units. In venues where gambling is not the primary business, the slot machine fee would double, increasing from 10 to 20 units.
Additionally, the proposal advocates for raising the tax rate on certain lottery, raffle, and betting operations from 20% to 30%. The tax authority, DIAN, would also have the authority to block websites in instances of non-compliance with technical monitoring.
The Ministry of Finance estimates that the introduction of VAT on online gambling could generate approximately €560.22 million by 2027. Projections indicate that from 2028 to 2030, the average annual income from gambling could reach about €633.05 million, contingent upon the approval and implementation of this proposal.
Overall, the government asserts that these changes aim to reduce the tax disparity between online and land-based gambling. The proposal will undergo a legislative debate before any of its elements can be enacted.
