Executive summary

Based on the special powers granted under the State of Internal Unrest, declared through Legislative Decree 062 of 2025, the Colombian Government issued Decree 175 on 14 February 2025. This decree introduces temporary tax measures effective from 22 February 2025, until 31 December 2025. A summary of the measures follows.

Value-added tax (VAT) on online gambling

Online gambling, which has been excluded from VAT, will now be subject to a 19% VAT. The VAT will apply to deposits made into the gambler's account held by the online gambling operator and enabling the gambler to place bets. Deposits can be made via money transfers or cryptocurrency. For the VAT to apply, the gambler must be a resident of or domiciled in Colombia or have a permanent establishment or economic activity in Colombia.

To calculate the taxable base, the deposit amount will be divided by 1.19. The amount available for betting will be the deposit minus the applicable VAT.

Foreign online gambling operators are also required to collect this VAT, adhering to the VAT regulations for foreign service providers.

Tax on certain sales of hydrocarbons and coal

The first sale or export of hydrocarbons or coal classified under tariff headings 27.01 and 27.09 will incur a 1% tax. If the extractor is also the exporter, the tax will be applied only once at the time of export.

Hydrocarbons under heading 27.09 used for in-kind royalty payments to the Colombian Hydrocarbons Agency (ANH) will be taxed only upon export.

The taxable base will be the transaction value, with the free-on-board (FOB) value applicable for exports. The exchange rate on the day of the export authorization request will be used for calculation.

Stamp tax

A 1% stamp tax will apply to the value of public and private documents (including contracts) exceeding 6,000 tax units (approx. US$72,000) that are subscribed, modified or extended and are (1) granted or accepted in Colombia or (2) granted abroad but executed in Colombia.

This tax had been in effect until 2009; the rate was reduced to 0% in 2010. The current provision effectively reinstates the prior provisions and several exceptions, including an exception for the acceptance of commercial offers via purchase orders.

Implications

Requirements to collect the new 19% VAT applicable to online gambling will also apply to foreign online gambling operators; therefore, they will need to comply with VAT regulations for foreign service providers.

Multinationals with business in Colombia involving sales or exports of hydrocarbons or coal classified under tariff headings 27.01 and 27.09 will be subject to 1% tax.

Further, the subscription, modification or renewal of public and private documents (including contracts) entered into in Colombia or abroad but executed in the country may be subject to stamp tax.