Colombia to implement 19 per cent GGR tax on online gambling
Colombian Finance Minister Germán Ávila confirmed that the government will implement new taxes and tax adjustments in response to the economic emergency caused by the recent funding shortfall, a consequence of the failure of the financing law in Congress.
Colombian Finance Minister Germán Ávila confirmed that the government will implement new taxes and tax adjustments in response to the economic emergency caused by the recent funding shortfall, a consequence of the failure of the financing law in Congress.
On Tuesday, December 30, 2025, during a press conference, Ávila stated that the tax package includes changes that will significantly affect the wealth of individuals and strategic economic sectors. He emphasized that the intention is to urgently compensate for the fiscal deficit created by the fall of the main revenue-raising tool.
The tax package will also include additional charges for the financial sector and for companies linked to hydrocarbons, as well as an increase in VAT and higher consumption taxes on categories such as gambling and alcoholic beverages.
Regarding gambling, the finance minister noted: “We believe that in terms of VAT there is a possibility of maintaining the criteria used during the economic emergency with the 19% tax for games of chance. We have taken care to set this rate at 19%, discounting or managing a taxable base that considers the reduction of the prizes awarded.”
According to the Minister of Finance in a press conference, the set of measures will be formalized with the issuance of an emergency economic decree by the Executive to close the financial gap opened due to the failure to approve the structural tax reform.
In November Colombia’s Senate rejected the tax reform proposal promoted by President Gustavo Petro, which represented a significant setback for the Executive and nullified the initiative that sought to raise $16 trillion destined for the 2026 Budget. Crucially the reform would have made the 19% Value Added Tax (VAT) on online gambling permanent.
The Colombian Federation of Entrepreneurs of Games of Chance and Luck (Fecoljuegos) stated that the most valuable aspect of the recent decree is that the Government has agreed to calculate the tax on the Gross Gaming Revenue (GGR).
With the decision the Executive has abandoned the idea of taxing users’ deposits, as initially proposed in the 2025 tax reform bill that failed in Congress. In a press release Fecoljuegos argued that this had been “disproportionate,” as the tax burden could exceed 70% of actual income, making legal operation in the country unfeasible.
With the 19% VAT on GGR, plus the 15% exploitation rights, the tax burden will be close to 34% (not counting income tax) the organisation stated.
