BRUSSELS: Belgium annulled on Thursday a 2016 constitutional amendment under which online gambling operators were required to pay a 21% value-added tax on their Belgian operations.
Belgium regulated its online gambling market in early 2010 when amendments to the Gaming and Betting Act of 1999 were published in the Belgian Official Gazette. The amendments took effect on January 1, 2011 to allow international gambling operators to apply for licenses from the Belgian Gaming Commission and operate in a regulated environment.
In 2016, the Belgian Finance Ministry successfully advanced a bill that proposed for online gambling services to become taxable under the country’s VAT laws. The new taxation regime came into force on August 1, 2016.
Gaming and betting transactions are exempt from VAT in the most general case. The Belgian government justified its decision to change the status quo in 2016 with the need for new revenue sources and for a major boost to the country’s tax income. It was estimated that the termination of gambling and betting companies’ VAT exemption could generate the additional amount of €39 million for Belgium’s coffers.
Malta-headquartered gambling operator Kindred Group (previously Unibet Group) was among the first to comment on the latest tax developments in Belgium and the Constitutional Court decision.
