Colombia’s government is renewing efforts to embed a 19% value-added tax (VAT) on online gambling into the country’s permanent tax code, despite legal hurdles that have placed the measure under review.
President Gustavo Petro’s administration has instructed Finance Minister Germán Ávila to include the tax as a line item in the 2026 national budget, signalling a shift away from its temporary status.
The 19% VAT was first introduced as a temporary tax on player deposits under emergency fiscal measures in 2025, aimed at addressing budget shortfalls. The Constitutional Court has since paused the decree pathway while it examines the legality of using emergency powers to impose the levy, giving operators short-term relief but leaving uncertainty over the long-term approach.
Industry groups have strongly criticised the tax, arguing that it has reduced licensed operators’ contributions and driven players toward unregulated sites. Data cited by sector associations showed gambling contributions dropping sharply in 2025 compared with 2024 when the VAT was in effect, prompting concerns about its broader impact on the regulated market.
Major operators such as Codere have warned that the tax could deter future investment in Colombia unless the policy is reversed or restructured. With a general election scheduled for May 31, 2026, the issue is likely to remain at the forefront of fiscal and regulatory debate as the government seeks stable revenue sources while balancing industry and operator concerns.
