Belgium: VAT for online gambling overturned

The controversial taxation of online gambling in Belgium has been overturned. This makes the country interesting for operators again.

On the 1st of August 2016, an amendment was passed, that nullified the VAT exemption for online gambling with a Belgian license. Operators suddenly faced an additional tax of 21 percent. This controversial regulation has now been overturned.

The Belgian constitutional court countermanded the law and thereby made for an equality of opportunity on the Belgian market. The massive taxation penalised licensed operator, who had to overcome a drastic increase in costs. The ones profiting from this situation were unlicensed operators as well as lotteries. The latter remained excluded from the taxation, which resulted in a distortion of competition. This was not only the opinion of those affected, but also of the Walloon government.

The constitutional court’s decision to restore the VAT exemption was welcomed by gambling operators. This step makes Belgium more interesting again as a business location for legitimate operators.

Recommended Posts