Colombia: Constitutional Court suspends decree imposing VAT on online gaming | Yogonet International
Summary
Colombia’s Constitutional Court has provisionally suspended Decree 1390 of 2025, which put a 19% VAT on gross gaming revenue (GGR) for online gaming. The suspension — approved by six justices (two opposed) — also renders ineffective Legislative Decree 1474 of 2025 while the Court considers the decree’s constitutionality. Collected funds remain intact for now. The measure halts application of the new tax until the Full Bench issues a final ruling.
Key Points
- Constitutional Court provisionally suspended Decree 1390 of 2025, pausing a 19% VAT on online gaming GGR.
- The suspension also affects Legislative Decree 1474 of 2025, which had applied the VAT to both domestic and foreign operators and taxed alcohol and wealth at 19%.
- Six justices voted in favour of the suspension; two voted against.
- Funds already collected under the decrees will remain intact pending the Court’s final decision.
- This is the first time the Court has halted a presidential decree while it assesses constitutionality.
- The emergency decrees were part of measures meant to raise around COP 12 trillion (approx. USD 3.2bn) and to help cover an additional COP 16 trillion (approx. USD 4.3bn) shortfall in the 2026 budget.
- Industry groups have not yet issued official statements; some sector advisors described the outcome as producing “relief and uncertainty.”
- President Gustavo Petro criticised the suspension on social media, saying the measures targeted the “mega-rich” and aimed to restore public finances.
Content summary
The Constitutional Court’s provisional suspension stops the government from applying a 19% VAT on gross gaming revenue from online operators while the Court reviews its legality. The decree had been enacted under a declared State of Economic and Social Emergency to help close gaps in the 2026 budget after Congress rejected the proposed budget. The suspension also nullifies the related legislative decree that extended the tax to other items, such as alcoholic beverages and wealth. Although the pause prevents immediate collection from continuing, monies already collected remain with the Treasury. The ruling is notable because it marks the first occasion the Court has paused a presidential emergency decree pending constitutional review.
Context and relevance
Why this matters: the decision directly affects the online gaming industry in Colombia and the government’s fiscal plans. Operators face short-term relief from an abrupt tax change, but uncertainty remains until the Full Bench rules. For policymakers, the ruling constrains the executive’s use of emergency decrees to raise revenue and could influence how future emergency fiscal measures are designed or challenged. The case also has wider implications for taxation of digital and cross-border services in Latin America.
Author style
Punchy: This is a high-stakes judicial check on emergency fiscal policymaking — it changes the immediate tax landscape for online gaming and raises big questions about how Bogotá will plug its budget gap. If you track regulation, operator economics or Colombian public finances, the full ruling will be essential reading.
Why should I read this?
Short answer: because it’s a rare court intervention that pauses a presidential emergency tax. If you work in iGaming, tax policy, or follow Colombian markets, this ruling affects revenues, compliance and strategy — and it could reshape how the government tries to raise emergency funds going forward.