Decree 175 of 2025

VAT on Gambling and Betting Games

With the implementation of the new Decree, online gambling and betting games operated exclusively via the internet, whether within the country or from abroad, will be subject to a 19% VAT.

This regulation temporarily suspends the exception mentioned in literal d) of Article 420 of the Colombian Tax Code (hereinafter “C.T.C.”)  for these activities. Therefore, during the validity of the Decree, all online bets will be subject to VAT, regardless of their origin.

For online gambling operators based abroad, VAT will apply when the user or recipient of these services has their tax residence, domicile, permanent establishment, or place of economic activity in Colombia.

Both national and foreign operators will be responsible for paying the tax.

As a result, foreign providers of these services will be temporarily responsible for VAT in Colombia. This includes the obligation to register and declare the corresponding VAT for transactions made with Colombian users.

The tax is borne by the bettor, so the amount available for betting will be the difference between the deposit made and the corresponding tax.

The taxable base for this tax will be the value of the money deposit, understood as the cash payment or transfers of money or crypto-assets made by the bettor into their user account and in favor of the gambling operator, divided by 1.19. To determine the taxable base, the following formula will be applied:

Taxable base = Deposit value / 1.19.

Hydrocarbons and Coal Tax

A new temporary tax has been established for the coal and oil extractive industries, called the "special tax for Catatumbo." This tax will apply to individuals or legal entities that carry out definitive exports and/or sales of hydrocarbons and/or coal, according to tariff headings 27.01 (coal, briquettes, ovoids, and similar solid fuels obtained from coal) and 27.09 (crude petroleum oils or bituminous mineral oils).

The taxable event of the tax includes the first sale within or from the national territory and the submission and acceptance of the shipment authorization request to the rest of the world.

The taxable base is determined by the sale value or the FOB value in pesos of the exported hydrocarbons and/or coal, using the exchange rate of the day the shipment authorization request is submitted and accepted if it is in dollars.

In this case, the rate will be 1% for the two taxable events mentioned.

If the extractor is also the exporter, the tax is incurred only once, applying the taxable base of the export.

Crude petroleum oils or bituminous mineral oils under tariff heading 27.09, received by the National Hydrocarbons Agency as royalty payments, will not generate the tax at the time of sale, but only upon export.

Stamp Tax

The National Government has reactivated the national stamp tax with a rate of 1%.

This tax will apply to public and private documents that generate obligations in Colombia and have a value exceeding 6,000 TVU, provided that the grantor, acceptor, or subscriber is a public entity, legal person, or merchant with income or gross assets exceeding 30,000 TVU in the previous year.

Documents for the transfer f real estate with a value exceeding 20,000 TVU will be subject to a special progressive rate ranging from 0% to 3%, as provided in Law 2277 of 2022 (Tax Reform presented by the current Government).

Submission of Applications for Certification. This Decree will be applicable from February 22,2025, until December 31, 2025