Gambling tax reforms have begun
New changes to the basis of taxation for gambling duties from ‘place of supply’ to ‘place of consumption’ came into effect on 1 December 2014. The introduction of a place of consumption tax means that remote gambling operators will be required to pay tax on the gross gambling profits generated from UK customers, no matter where in the world the operator is located. The changes will include the provision of gambling over the internet to UK customers.
The changes will require remote gambling operators to pay general betting duty (GBD), pool betting duty (PBD) and remote gaming duties (RGD) if they provide the relevant gambling options to UK customers.
Exchequer Secretary to the Treasury, Priti Patel said:
‘The new rules will provide a fairer tax system for all gambling operators. Those businesses that moved their operations abroad to avoid paying UK taxes will now have to pay their fair share of tax. The Government has created a level playing field across the gambling industry so that all gambling by UK consumers is now subject to UK tax.’
It is estimated that the remote gambling market in the UK is worth over £2 billion each year.