Gambling Advertising Spend on the Up in Germany.
Rising skepticism of the gambling sector, also referred to as online gaming by government officials, did little to deter operators in recent years. But a new EU-wide digital taxation scheme, spearheaded by France and Germany, now threatens to tax all digital companies on their turnover or profits.
The Point of Consumption Tax basically says that companies providing services, including gambling, must pay tax applicable to the country in which the end-user of that service is accessing it. Put simply, if someone was playing online casinos in the UK, it wouldn’t matter whether the operator was based in the UK, Malta, Gibraltar, or the Moon - a 15% tax on all wagers accepted still applies.
Though the two tax rates mentioned may seem extreme, they are by no means the highest or lowest examples within the industry. Highest Gambling Tax Rates. Here’s a look at the top 10 countries charging the highest gambling tax rates, with the figures mentioned being the upper case amounts possible: Germany (90%) France (80%) Austria (80%).
Germany is one of the most attractive and expanding gambling markets worldwide: With a GGR of around 14 billion EUR in 2018, it is the third biggest gambling market in Europe after Italy and the UK. Although it offers profitable income opportunities for the gaming industry, gaming companies have to face a complicated and restrictive German gambling legislation.
Germany is set to implement a treaty that could make gambling more difficult in the country. The treaty would ban unlicensed casinos, in-play gambling, enforce a new tax and also set monthly gambling limits. PayPal has even adjusted their terms and conditions to prevent players from using online casinos in Germany unlawfully.
Register for gambling tax File your gambling tax return Gambling Tax Service: online service guide for General Betting Duty, Pool Betting Duty and Remote Gaming Duty.
Throughout Germany, any operator offering licensed or unlicensed sports or horse race betting is subject to a 5% federal tax on stakes. In addition to regular corporate taxes, slot machine operators have to pay municipal amusement tax.