The National Government has issued Decree 175 of February 14, 2025, establishing three new taxes aimed at raising over $1 trillion COP to address the crisis in Catatumbo and other areas affected by public order disturbances.

Main Taxes Implemented

1. 19% VAT on Online Gambling

A 19% Value Added Tax (VAT) will apply to electronic betting and gambling in Colombia or from abroad. The tax is triggered when users deposit money or cryptocurrencies into their gaming accounts.

Operators offering online gambling services from abroad will be liable for VAT under the same rules as foreign service providers, as long as the end user or recipient is a resident, domiciled, or has a permanent establishment or economic activity in Colombia.

The estimated tax revenue is $519 billion COP.

2. 1% Special Contribution on Oil and Coal Exports

A 1% additional contribution is imposed on:

• The first sale of hydrocarbons and coal, whether domestic or for export.
• The submission and approval of export shipment authorization requests.

The tax is triggered upon invoice issuance or, in its absence, upon first delivery in domestic sales. For exports, it applies when the export shipment authorization request is accepted. This tax applies to the following tariff classifications:

• Heading 27.01: Coal, briquettes, and similar solid fuels.
• Heading 27.09: Crude petroleum oils or oils from bituminous minerals.

Taxpayers include individuals and companies engaged in definitive exports and/or commercial transactions involving these goods, with an estimated revenue of $214 billion COP.

3. 1% Stamp Tax

A 1% stamp tax is imposed under Article 519 of the Colombian Tax Code. The estimated revenue is $330 billion COP.

This tax applies to deeds, private documents, and contracts executed either in Colombia or abroad, provided they are performed in Colombia, and involve obligations exceeding 6,000 UVT ($298,794,000 COP for 2025).

It is important to note that the stamp tax also applies to accepted commercial offers, even if the acceptance is made in a separate document. However, purchase or sales orders for goods and services, as well as commercial offers accepted upon issuing a purchase or sales order, are exempt from this tax.

4. Validity

Decree 175 of 2025 will take effect upon its publication. Its provisions will apply five business days after publication and will remain in force until December 31, 2025.

Although the state of internal disturbance is limited to 90 days, the taxes created under this decree will remain in effect until December 31, 2025, as established by law.

5.Final Considerations

These measures reflect the Government’s efforts to generate additional revenue amid fiscal constraints and a recent $12 trillion COP budget deferral. The new taxes and adjustments in cost determination may significantly impact companies and individuals operating in the affected sectors.

For guidance on how these provisions may impact your operations or tax strategies, our team is available to provide specialized advisory services.