Online gaming operator bwin.party has announced that its 2015 total net revenue and cashflow will be reduced by approximately €15 million ($17 million) due to new VAT laws in the European Union (EU).
As of January 1, 2015, new VAT rules that impact several areas of the digital economy came into effect across the continent.
Gambling has previously been exempt from such VAT, but does fall under the rule for VAT on electronically supplied services.
Under the updated law, Member States in the EU have the ability to apply VAT to gambling subject to certain limitations and conditions, with tax now being due depending on where customers are located an how Member States implement any exemption.
Although bwin.party said in a statement that “substantial uncertainty remains” over the VAT, the operator’s board expects to file for and pay VAT in certain Member States, with its full-year total net revenue and cashflow for 2015 being reduced by approximately €15m before any mitigating actions as a result.
source : www.igamingbusiness.com
