Uncertainty over future of VAT on gambling in Colombia after court suspends decree
The Constitutional Court of Colombia has provisionally suspended the economic emergency decree that reduced the tax burden on the sector.
Colombia.- The Constitutional Court of Colombia has announced the provisional suspension of the economic emergency decree issued by President Gustavo Petro’s government in late December 2025. That includes the new formula for calculating VAT on gambling in Colombia.
Under the decree signed off by finance minister Germán Ávila, Value Added Tax on online betting was to be levied at a rate of 19 per cent on gross gaming revenue (GGR) rather than on player deposits.
The moved followed intense industry criticism of the decision to apply VAT to deposits from February of 2025. That was initially intended as a temporary measure to raise funds for the conflict-hit province of Catatumbo but later made permanent under the government’s 2026 Budget.
The Constitutional Court of Colombia has now determined that Decree 1474 of 2025, which also established the new tax scheme on wealth and alcoholic beverages, will not take effect while the Court makes a final ruling on its constitutionality. The decision was backed by a majority of six justices to two.
The suspension means that no new taxes derived from the decree will be collected while the judicial review is underway, although the refund of taxes already paid under the suspended regulations is not mandated.
“It is suspended as of today, but since it was in effect before this date, the resulting decrees enjoy a presumption of legality,” Petro wrote on his Twitter account. He also warned of possible adverse fiscal effects on the economy as a result of the decision.
