Colombia's outgoing government has submitted a bill to make the 19% online gambling VAT permanent. President Gustavo Petro is pushing the tax reform ahead of the inauguration of new president Abelardo de la Espriella, scheduled for 7 August.
The government estimates potential tax revenue from online gambling at 1.7 trillion Colombian pesos ($530.8 million) by 2027 if the VAT is adopted. Authorities claim the sector has not suffered during the temporary measure and the tax collected the expected amount.
The 19% VAT was first introduced as an emergency measure in February 2025 to fund operations in the Catatumbo region. In December, lawmakers tried to make it permanent, but the senate rejected the bill. The constitutional court suspended the tax in January. In March, authorities imposed a new emergency levy of 16% on deposits, citing floods in eight provinces.
According to law firm Baker McKenzie, the permanent VAT will again be charged on deposits rather than GGR. This will trigger operator resistance. The Colombian gambling industry federation said in April that online GGR had dropped 30% in the two months after the tax was introduced. Major operators compensated players for the VAT with bonuses.
Authorities insist the tax eliminates an imbalance: land-based casinos already pay 19% VAT, while online operators enjoyed preferential treatment. Without the measure, digital services would be in a privileged position from 1 January 2027, contradicting principles of fairness and tax-system efficiency, the bill states. Given the failure of Petro's previous attempts, the new initiative may face congressional resistance again.
