COLOMBIA Law and Practice Contributed by: Juan Camilo Carrasco, Asensi Abogados
VAT As mentioned earlier, VAT applies to any game of chance authorised in Colombia, except for internet- operated games and regional lotteries. At the time of this publication: (a) VAT of 19% has applied to online gambling since March 2025 for all verticals; the VAT exemption was temporally repealed by Decree 175 of 2025 of 14 February 2025 introduced by the government when it was implementing tax measures to address the expenditure of the General Budget to deal with internal upheaval; however, this Decree expires on 31 December 2026; and (b) a legislative debate is ongoing regarding the potential elimination of this exemption, which would subject online gaming activities to the 19% VAT rate; as an example, included here is a description of the application of this tax in relation to slots, casino games (roulette, poker, blackjack, etc) and bingo – all of them, of course, being understood to be land-based. Regarding land-based operations, the application of VAT on these games, follows certain variables for its calculation: • general rate – 19%; and • UVT – COP47,065. UVT is an index tributary value updated every year by the government in line with inflation. Please note that the tax base for VAT, in relation to these games, is not the turnover, the GGR, nor any other figure related to sales or incomes, but is a fixed amount calculated as “x” times (depending on the game) the UVT multiplied by the VAT general rate. Therefore, there is no real consideration of sales per game, terminal, table, etc, as the presumptive sales of the relevant UVT are the basis for the rate of 19% to be paid monthly via electronic declaration. It is also important to note that VAT cannot be part of the value of the stake to be placed by the player. In other words, if a player places a stake of COP100, the
value of their stake should be precisely that and not COP100 minus 19% VAT (COP81). The following examples illustrate how VAT is calcu- lated for the different land-based games. VAT for land-based slots For slots terminals, the taxable monthly base per ter- minal is UVT20. Hence, the taxable monthly base will have the VAT general rate of 19%, which is the tax cost per terminal and per month. VAT for casino games (table games) For casino games, the taxable monthly base per table is UVT290. Hence, the taxable monthly base will have the VAT general rate of 19%, which is the tax cost per table and per month. VAT for bingo For bingo, the taxable monthly base per seat is UVT3. Hence, the taxable monthly base will be charged with the VAT general rate of 19%, which is the tax cost per seat and per month. Tax on Winnings The Tax Code sets forth a 20% tax on winnings. The operator will have to withhold this amount at the time of the withdrawal of funds or a prize payment. It applies to withdrawals over approximately USD400. On the other hand, regarding online gambling, as it was mentioned above, the exclusion of VAT of 19% was temporarily repealed until December 31, 2025. Nevertheless, a tax reform is also under debate in the Senate in order to permanently repeal the VAT exclu- sion for online gambling.
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