iGaming Taxation System in Europe
The igaming taxation landscape in Europe has been recently put under changes what brought rather mosaic of tax rates in different countries across EU. Remote gaming taxes are varied accordingly to percentage. For example in the UK the amount of 15 per cent of tax is taken from gross gaming revenue ( the sum of stakes, excluding winnings). Similarly, the same percentage rate is applied for remote betting. Denmark, in comparison, uses 20 per cent out of gross gaming revenue on remote gaming. However, Spain imposes tax on turnover for pool betting and contests which starts at 15 and ends at 22 per cent. And for gaming gross revenue from 20 to 25 per cent concerning casino and other types of betting. France puts higher taxes on sports betting, it’s 7.5% imposed on every bet. To compare it with Maltese system which is the most economic option, it’s 0.5% placed on every bet.
Operators need to remember about differentiated tax systems in foreign jurisidctions if they operate on international level. Each one has its own independent formalities and legal matters to deal with. Oftenly, communication barriers are responsible for difficulties in operations, so for operators it is urgent to possess qualified advisory back up and technical support in different countries. They can also rely on companies in destination countries which locally deal with any legal or technical matters.
It is usual for operators to tackle with double taxation in case of operating under different jurisdictions. Therefore, double taxation relief may be obtained. Although double tax treaties (DTT) do not treat about relief for double taxation. Operators may try to use information on income taxes which amount may overhaul the amount of gaming tax. Malta is the only country in EU that does not impose gaming taxes in case an operator is licensed in other European Economic Area (EEA). Similarly, the UK possesses double taxation relief for operators in EEA. Britain enlists such countries like Italy, Spain, Greece, Germany, Austria and Denmark, as the ones liable for relief.
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