Colombian Government Proposes 19% VAT on Online Gaming Sector to Fund 2025 Budget

The Colombian Government, led by President Gustavo Petro, is considering implementing a 19% Value-Added Tax (VAT) on the online gaming sector as part of a new tax reform aimed at financing the 2025 budget.

Minister of Finance Ricardo Bonilla met with parliamentarians on Monday, September 2, to discuss the proposed budget bill. During the meeting, Bonilla emphasized that the tax reform would provide "a source of financing" amounting to approximately COP 12 trillion.

As part of the reforms, the Minister informed legislators that "a 19% VAT will be applied to online games of chance, that is to say, those operated through the Internet, whose rate is currently zero."

"We are identifying those amounts," Bonilla said, referring to the online gaming companies operating in Colombia, noting that "a great part of those resources are going out of the country."

Wadith Manzur, a member of the House of Representatives who attended the meeting, confirmed that the administration is seeking new revenue sources, particularly from sectors that have been lightly taxed thus far.

According to Blu Radio, the Petro Government estimates that the new tax on the online sector could generate COP 2 billion, or approximately $478.2 million.