Colombia’s Constitutional Court has invalidated Decree 1474 of 2025, removing the 19% VAT on online betting and liquor and ordering DIAN to process refunds tied to the measure
The ruling adds another setback to the emergency tax package introduced by the Colombian government at the end of 2025, reversing a measure that had directly affected online betting operators and the liquor sector under the broader emergency framework. According to published reports, the court also instructed the DIAN to move ahead with the refund process within 30 days of notification.
The decision was issued by the Constitutional Court’s Full Chamber on 15 April 2026 and struck down Decree 1474 of 2025, the tax decree that had imposed a 19% VAT on online betting and liquor sales in the context of the government’s emergency economic measures. Reports indicate the decision was unanimous.
Under the ruling, the National Tax and Customs Directorate (DIAN) must proceed with the return of taxes collected under the decree. Some reports state the refund order applies to taxes charged directly and indirectly between 30 December 2025 and 28 January 2026, after the emergency decree was suspended, while other coverage frames the refund more broadly around the life of the measure.
The ruling follows the court’s earlier move against Decree 1390 of 2025, which had declared the economic emergency that gave rise to the tax package. That emergency decree was provisionally suspended by the court on 28 January 2026 and was later declared unconstitutional, weakening the legal basis for the related fiscal measures adopted by the government.
The government had introduced the emergency tax framework after Congress failed to approve two financing bills intended to raise resources to address what it described as a structural fiscal deficit. Under Decree 1474, the administration sought to raise around COP11tn through measures including the 19% VAT on liquor and online betting, as well as changes to wealth tax thresholds.
For the online gaming sector, the ruling removes a short-lived tax burden that had become a major point of concern for operators in Colombia’s regulated market. The decision is likely to be viewed as a stabilising development for the sector, particularly after months of uncertainty around the emergency measures and their legal durability.
There is still some public disagreement over the practical scale of the refund process. President Gustavo Petro said on social media that the taxes struck down by the court were not ultimately collected in the way some reports suggested, implying there may be little or nothing to return, while other reports maintain that DIAN must refund amounts paid under the decree. That tension means the operational aftermath of the ruling may remain under close watch in the coming weeks.
