19% VAT due on non-resident for rest of 2025
The Colombian government has imposed Value Added Tax collection obligations on non-resident online gambling operators. This will apply between 22 February to 31 December 2025.
VAT will based on cash, transfers (including crypto-currency) deposits with operators by residents of Colombia.
Gambling generally exempt from VAT
The liability of online gambling services to Value Added Tax (VAT) depends on the jurisdiction. Most territories exempt it; instead imposing gambling levies on winnings.
- European Union (EU): In the EU, gambling and betting activities are generally exempt from VAT under Article 135(1)(i) of the VAT Directive. However, some member states impose VAT on certain types of gambling services, especially if they do not fall under the exemption (e.g., online gaming with an element of skill rather than chance).
- United Kingdom (UK): Gambling activities, including online gambling, are exempt from VAT. However, gambling operators are subject to Gambling Duty instead.
- United States (US): The US does not have a federal VAT system, but online gambling is usually subject to state-level gaming taxes rather than a sales or VAT-equivalent tax.
- Other Jurisdictions: Many countries apply specific gambling taxes instead of VAT, but some may impose VAT on certain digital gambling services, especially if they involve entry fees or in-game purchases.
