European Court rules against GBGA in PoC case
Judgment says 15% levy does not restrict freedom to provide services between European Member States
The Court of Justice of the European Union (CJEU) has ruled Gibraltar and the UK to be a single member state for trading purposes, a judgment which effectively ends the Gibraltar Betting and Gaming Association’s (GBGA) long-running attempt to overturn the UK Point of Consumption tax.
The GBGA has long argued its operators should be exempt from the 15% tax on operators active in the UK, claiming the tax breached European law, because it violated Article 56 of the treaty on the functioning of the EU, which preserves the right to trade freely across borders.
The case was previously heard at the High Court of England and Wales, but was referred to the CJEU in summer 2015 after the UK court deemed the levy a potential breach of European law.
However the CJEU ruled Tuesday the UK and Gibraltar constituted a single state because trade between the two countries differed from trade between two normal European Union member states due to their historical relationship.
“It follows that the provision of services by operators established in Gibraltar to persons established in the United Kingdom constitutes, under EU law, a situation confined in all respects within a single Member State,” the court said.
Despite the ruling, the Gibraltar government claimed the judgment would not have any negative effect on its egaming industry.
“Indeed, the judgment may provide a different, and strengthened, perspective on Gibraltar’s position in the Brexit negotiations, as part of the same UK single market for the purposes of EU law,” a government spokesperson added.
The GBGA declined to comment on this article.