The reform now taxes every Internet-based service paid through a credit card with 19% VAT. The measure affects every OTT video service, such as Netflix, Claro video, Amazon Prime and HBO Go, but also Uber, Spotify and Airbnb.

In addition, a new 4% tax has been created for large mobile data packages, a measure that has been seen by telcos as hindering consumption. The tax will be applied to those packages that cost over $15 per month.

“The telco business is on the down, and a 23% tax (19% VAT plus 4%) for mobile is going to generate user decline,” said Nancy Patricia Gutiérrez, president, Asomóvil, speaking to the newspaper El Tiempo.

With this new regulation, Colombia is one of the first Latin American countries to specify taxes for OTT players, a topic that has been widely discussed across the region.

“It helps to see our activity as legitimate and is the first step towards a smart regulation that continues to create income opportunities,” stated Uber in a note sent to Colombian media.