Belgian court rules in favour of tax exemption

Parliament’s intention to abolish the value-added tax exemption for online games and betting has been struck down by the court.

Belgium.- The Belgian parliament intended to abolish the value-added tax (VAT) exemption for online games and betting but has been stopped by Belgium’s Constitutional Court, as it ruled against a bill set to place a heavy tax load on gambling operators.

In a statement released shortly after the ruling went public, Stockholm-listed online gambling operator Kindred Group Plc said: “Kindred Group yesterday received a positive ruling in the Belgian Constitutional Court cancelling the imposed VAT on online gambling. Kindred remains committed to a sustainable regulation and sees the ruling as positive for consumer protection.”

Kindred challenged the bill that was passed in July 2016 by the Belgian Chamber of Representatives, which forced operators to pay 21 per cent VAT as of August 1st, 2016. The tribunal found flaws in the measure, including the inherent incompatibility between consumer protection and tax revenue objectives, and highlighted the different treatment between products – such as lotteries – in comparison to other products and channels.

“Kindred remains a strong advocate of sustainable regulation based upon a borderless digital market and channelling consumer demand to licensed offerings,” the company’s statement also read.