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Colombia’s Finance Bill 2025 eliminates VAT exclusions, taxing software licenses, cloud services, hosting, and online gambling, aligning VAT scope with digital economy developments and expanding tax base coverage.
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The 19% VAT rate expands to real estate sales, imported goods by post, tourism services, alcoholic beverages, and hybrid vehicles, while pure electric vehicles maintain the preferential 5% rate.
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Gasoline and diesel face phased VAT increases from 2026, beginning at 10% before reaching the 19% general rate, extending to petroleum-derived fuels from January 1, 2026.
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Membership-based services including gyms, clubs, and similar organizations, previously outside VAT scope, will now be taxable, broadening Colombia’s consumer tax base and increasing fiscal revenue potential.
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Renewable energy equipment, machinery, services, and efficiency projects benefit from a zero VAT rate, reflecting government support for energy transition while balancing sustainability with fiscal policy demands.
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Online gambling VAT base clarified as player deposits, including cash, transfers, or crypto assets, divided by 1 + VAT rate, ensuring transparency and consistent taxation of digital betting activities.
Source: vatcalc.com
