Belgium-licensed operators face new 21% sales tax

Online operators in Belgium could face a new 21% nationwide sales tax with the country’s federal government due to discuss proposals tomorrow, eGaming Review understands.

According to sources close to the matter, the country’s Cabinet of Ministers and Prime Minister Charles Michel are set to discuss the tax proposals at Friday’s weekly cabinet meeting which could see a bill go before the Belgian Federal Parliament next month and the new levy implemented as early as July.

Last week the Belgian government published its budget plans which included obtaining additional revenue from taxes on online gambling.

The VAT levy would be in addition to the 11% tax online operators already pay on GGR but would exempt the Belgian National Lottery, including its online sportsbook Scooore!, much to the dismay of the gambling industry.

Online gambling companies have been heavily lobbying the federal government in recent weeks, arguing that the new tax and National Lottery’s exemption could make the market commercially unviable.

Gambling operators are currently required to partner with or run a land-based establishment, which pay between 15% and 25% in taxes, to provide their services to Belgium-based customers online.

Those which would be impacted by the additional tax include the likes of Ladbrokes, Betway, PokerStars, Unibet and bwin.party. Commenting in its trading update this morning Ladbrokes said it would look at appealing against any changes to the tax system.

“In Belgium we note comments circulating that the Federal government is considering raising additional tax on private sector betting and gaming activities,” the statement said.

“We await further clarification and potential for appeal if required,” the UK bookmaker added.

A bwin.party spokesperson also added: “We are aware of reports that the Belgium authorities are considering revisions to the tax arrangements for the gaming sector. We will follow developments with interest