Finance Bill 2025: withdrawal VAT exemptions; new 19% supplies; online gambling
On 1 September 2025, Colombia’s Ministry of Finance introduced a Finance Bill to Congress. Among its most measures are wide-ranging changes to VAT, signalling a fundamental shift in how consumption taxes will apply across sectors.
1. Elimination of VAT exclusions
Several services that were previously excluded from VAT would now fall within scope at the general 19% VAT rate. These include:
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Acquisition of software licenses for digital content development.
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Cloud computing, hosting, and web page services.
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Games of chance and gambling, including those offered online by foreign operators.
This change aligns Colombia’s VAT treatment more closely with the digital economy, ensuring that tech-driven services contribute to the tax base.
2. Expansion of the 19% rate to new goods and services
Currently exempted or reduced-rate goods and services would also be taxed at the general 19% rate, including:
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Real estate sales.
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Imported goods via postal delivery, regardless of value (removing the USD 200 exemption).
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Tourism services used in Colombia by non-residents, when sold as packages by registered operators or hotels.
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Goods already subject to consumption tax on spirits, wines, and aperitifs.
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Hybrid and plug-in hybrid vehicles and their components (up from the current 5% rate). Notably, pure electric vehicles will retain the 5% preferential rate.
3. VAT on fuels
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From 2026, gasoline and diesel (ACPM) will initially be taxed at 10%, before gradually being brought under the general 19% rate.
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From January 1, 2026, the general VAT rate will also apply to other petroleum-derived fuels.
4. Memberships included in VAT net
The sale of memberships—currently outside VAT scope—will now become taxable. This measure affects gyms, clubs, and other membership-based services, broadening the consumer tax base.
5. Incentives for renewable energy
The bill proposes a zero VAT rate on the purchase of:
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Equipment, machinery, and services for generating or using energy from non-conventional renewable sources.
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Resource assessment activities and energy efficiency projects.
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Related services, whether provided domestically or from abroad.
This measure highlights the government’s push to support the energy transition while balancing fiscal needs.
6. Online gambling tax base redefined
For online gambling, the bill clarifies the taxable base as the amount deposited by each player (cash, transfer, or crypto assets). The formula is:
Taxable base = amount deposited ÷ (1 + general VAT rate)
This move aims to ensure transparency and consistency in taxing a growing digital sector.
