RGA calls on EU to investigate Belgium gambling VAT
Trade body says the 21% levy on online operators has had a negative effect on the market and could constitute state aid
The Remote Gambling Association (RGA) has called on the European Commission to investigate whether Belgium’s value-added-tax (VAT) on online gambling operators is discriminatory and constitutes state aid.
The Belgian government introduced the 21% tax last year but exempted land-based companies and the country’s national lottery, much to the dismay of remote operators.
And speaking to EGR Intel, the chief executive of the RGA, Clive Hawkswood, urged the European Commission to launch an investigation into the levy.
“We would very much hope that the European Commission will look critically at this approach from a state aid perspective, especially as Belgium’s Court of Auditors and Council of State have raise concerns about it,” Hawkswood said.
“It is hard to think of a more overt example of discrimination between different forms of gambling and one effect of this will inevitably be that more online operators will review whether the Belgian market remains a viable one for them.”
The VAT is in addition to the 11% tax online operators already pay on gross gaming revenue and Hawkswood added that the tax burden may have to be passed on to customers.
“The effect of that would be to make Belgian-licensed online operators less competitive compared to the land-based sector and online operators who are licensed outside of Belgium but who are still accessing the market,” he said.
Hawkswood’s comments come after Kindred Group’s CEO, Henrik Tjärnström, last year made a similar plea to the Belgian government, arguing that the tax would lead to reduced channelisation.
Betclic Everest Group recently pulled out of the Belgian market having launched in partnership with land-based casino operator Ardent Group last year.
However, the Paris-based operator did not say its decision to withdraw from the market was a result of the country’s tax burden.