- Colombia revised its VAT system for licensed online gambling, keeping the 19% rate but shifting the tax base from player deposits to gross gaming revenue.
- The change follows the failure of a government funding bill, leading to emergency measures to redistribute VAT revenue for 2026.
- The previous deposit-based VAT was introduced as a temporary emergency measure in response to regional unrest and was set to expire at the end of 2025.
- Industry representatives opposed the old system, arguing it made licensed online gambling economically unviable and led to a 30% drop in gross gaming revenue.
- The new framework is seen as a major improvement, reducing the effective tax burden from over 70% to about 34% of gross revenue.
Source: yogonet.com
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
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