Colombia has introduced a new tax on online gambling through Decrees 0240 and 0241, establishing a 16% consumption tax on player deposits made into online gaming platforms.
The tax on applies to games of chance that operate exclusively online. Winnings from players do not incur a tax under this legislation. Any funds deposited into a betting account with the intent of using them for gambling are subject to the new tax.
A 16% tax will now be charged whenever a user makes a deposit into their online gambling account and applies to all types of money transfer methods. It is important to note that the tax becomes payable at the time of deposit, not at the time of placing a bet or withdrawing money won.
In addition to covering local transactions, the new law also applies to all deposits made in or out of Colombia and will be assessed on any deposit made into a user account that is used for online betting.
All online gambling operators are responsible for collecting and paying the tax. Each operator is required to charge a 16% tax at the time of the deposit and pay the amount collected to the Government as part of their tax obligation. There are also enforcement measures associated with the new tax. Operators who do not comply with the new tax law will be subject to sanctions by their respective regulatory authorities.
With this move, Colombia continues to expand its regulatory framework for online gambling, adding new compliance obligations for operators while introducing an additional revenue stream linked to player activity.
