What is ‘Betting Tax’?
It is therefore fundamental for remote gaming operators to ensure that they have a combination of technically sound and practical local advisors who speak good English as well as, either in-house capacity to deal with local languages and practices at a legal, tax and accounting level, or an external firm of advisors which can act as a buffer, a sieve or a funnel in between them.
The introduction of different taxes on remote gaming across European jurisdictions has given rise to a situation where there is likely to be double taxation.
It is therefore pertinent for remote gaming operators to consider whether relief for double taxation can be obtained in respect of gaming tax. Whether or not relief for double taxation in respect of gaming taxes is available also normally depends on whether it is the same person paying taxes in both states including the one in which relief is being sought.
Juridical double taxation is the imposition of comparable taxes in two or more states on the same taxpayer in respect of the same subject matter and for identical periods . Relief will not normally be available, even in principle, where it is two separate entities even though within the same group of companies which pay gaming taxes in two separate states. However, Malta seems to be an exception in this regard. For example UK gaming and betting taxes are likely to apply to an entity established in and operating out of the UK even in respect of those activities carried out by that entity under a licence from another EEA state.
In such a case, if that same entity is also paying gaming tax in the other EEA state, the double tax treaty between the UK and that other state should be looked at in order to determine whether double tax relief is possible. Place of supply rules are fundamental in determining whether a transaction falls within the scope of VAT of a particular EU jurisdiction, and ultimately the member state in which VAT is due and the particular rate at which it is due.
New EU legislation approved by EU member state finance ministers in February will come into force on 1January , introducing a change in place of supply rules for providers of electronically supplied services. Currently the place of supply where operator and customer are both in the EU is the place of establishment of the operator.
In this will change to the place of consumption; where the customer is located. EU states will be able to exercise discretion as to whether betting, lotteries and other forms of gambling consumed on their territory, remain VAT exempt.
Therefore, from , in order for a remote gaming company to be able to determine whether VAT is chargeable in the member state of consumption or not, it must first determine where the customer is located.
If that customer resides in a jurisdiction which decides that gambling is no longer VAT exempt, an operator taking business from that jurisdiction will have to collect VAT from its players and pay VAT there, irrespective of where, in the EU, it is.
Denmark argued that the tax rate for remote gaming reflected the necessary balance between, on the one hand, the need to comply with the objectives of Danish gambling legislation to protect players, and, on the other hand, competition from online operators established in other countries with lower tax rates.
The Commission argued that given the nature of the games offered online and in land-based premises, the social experience provided by the activity of gaming in both platforms, and the socioeconomic profiles of the consumers, it had doubts as to whether the differences between online and land-based gaming were sufficient to consider them as not being comparable in law and in fact for the purposes of their tax treatment under the DGDA.
To be appointed as your agent they need to give you their:. Read these 8 steps before you file your gambling tax return:. You must complete and submit your return even if it shows that no tax is due. You can use one of the following 2 methods:. For changes of any amount you can write to HMRC. The postal address can be found on the Customs International Trade and Excise page. Contact HMRC if you need further help.
To help us improve GOV. It will take only 2 minutes to fill in. Skip to main content. Guidance Gambling Tax Service: Published 17 March For GBD - The number of betting shops you have in the UK - if any - for off course betting and expected annual taxable profit from any: Group registration If you want to register as a group, the group lead member must complete the registration application and provide details of all group members. Representatives If you need to appoint a representative you should tell HMRC when you apply to register online.
Appointing an agent If you want to appoint an agent to act on your behalf, you can do this when you register online or as a change to your existing GTS registration. To be appointed as your agent they need to give you their: Government Gateway agent reference number postcode Make changes to your registration or deregister To make changes: