Online gambling operator anticipates an additional Euro 15 million VAT hit
In a statement Friday online gambling group Bwin.Party Digital Entertainment advised that it is to review its net revenue and cash flow figures as a result of new European Union valued added tax regulations which take effect from January 2015.
The bad news is that the already pressured group expects the new arrangements regarding digital business and services will require it to pay an extra Euro 15 million in VAT this year.
The new regulations mean that EU member states can levy taxes based on where a company's consumers are located (point of consumption) rather than where the company is registered or has servers.
In a statement Friday, Bwin.Party management advised:
"Whilst substantial uncertainty remains, in the light of the new rules the board now expects to file for and pay VAT in certain EU Member States and that in 2015 total net revenue and cashflow will be reduced by approximately EUR15 million before any mitigating actions".
The group could be hammered hard in Germany and France, where corporate taxes will reach 20 percent on gambling verticals.
Online Casino News Courtesy of Infopowa