Colombia’s government under President Gustavo Petro is making a renewed effort to implement a 19% value-added tax (VAT) on online gambling before the administration leaves office. The move represents the latest attempt to cement the tax measure, which has been a subject of debate in the country’s regulated gambling market.
The Petro administration is pushing forward with the VAT proposal as part of its final legislative agenda, aiming to secure its passage before the end of its term. The 19% VAT would apply to online gambling operators licensed in Colombia, adding a new layer of taxation to an already regulated market. The measure has been previously discussed but has not yet been enacted into law.
Colombia has one of the most established regulated online gambling markets in Latin America, overseen by the gaming regulator Coljuegos. The introduction of a VAT on online gambling would align the sector with other goods and services taxed under the country’s general VAT regime. The proposal has drawn attention from operators and industry stakeholders, who are monitoring the legislative process closely.
If implemented, the 19% VAT would increase the tax burden on licensed operators, potentially affecting their profitability and pricing strategies. It could also influence the competitive dynamics between regulated and unregulated operators, as the tax may make licensed offerings less attractive to price-sensitive consumers. The move underscores the government’s focus on extracting additional revenue from the gambling sector.
Industry observers will be watching to see whether the administration can secure the necessary legislative support to pass the VAT measure before leaving office. The outcome could set a precedent for other Latin American markets considering similar tax policies on online gambling.