Court rules Dutch PokerStars players are exempt from gambling taxes

Dutch PokerStars users could be exempt from Dutch gambling taxes and in line to receive tax refunds from Dutch authorities following a court ruling in Hertogenbosch.

The Dutch Revenue Service has been claiming PokerStars is based on the Isle of Man, which, as it is outside of the EU, would have made PokerStars players liable to pay Dutch gambling taxes of 29% on winnings.

However, the Appeals Court of Den Bosch ruled that PokerStars was actually based out of Malta, inside the EU.

In its decision, the court ruled the place of establishment of the website operator or ‘holder’ should determine whether the site is domiciled in the EU or otherwise for tax purposes.

Considering this appeal the judge added: “It is probable that in Malta the company has taken on its own name and under its own responsibility the actual organisation of the game for the Dutch players and in this case is to be considered as holder.”

The court ordered the Revenue Service to repay the tax payment, although Revenue Service could still appeal the court’s decision to the Dutch Supreme Court.

The ruling could see other players file for similar tax refunds from the Revenue Service.

The court was responding to an appeal made by Dutch tax authorities against a ruling centring on a Dutch player using the Pokerstars.eu site in 2012.

Under article 56 of the treaty for the functioning of the EU, there can be no restrictions on services being provided to EU nationals from another EU member state, including taxation.