The 2015 amendments to council directive 2006/112/EC and their effect on e-services in Malta, specifically the gaming industry

Abstract

The online gaming industry is one of the biggest contributors to Malta’s economy. This is a result of the attractive package offered to gaming operators in order for them to establish themselves on the island. The industry is, however, dependent upon different sets of laws at both the local and European level that will allow it to thrive, or construct roadblocks in its way. One of these legislations is Council Directive 2006/112/EC, which provides for the place of supply rules for the supply of electronically supplied services (‘e-services’). These rules determine where VAT is chargeable on the supply of the service. In the spate of time from 2008 to 2015, the EU VAT Package was put into place, amending a significant portion of the aforementioned Directive. One of the last amendments to come into force was the amending of the place of supply rules in respect of e-services, effective 1st January 2015. Effects were felt, as a result of these amendments, in regard to the gaming industry within Europe, with Malta being no exception. It is these effects which shall be discussed and analysed in this thesis, as well as efforts that were made to neutralise and mitigate any potential harmful effects that these amendments may have had on the industry. To conclude, further suggestions in respect of the above will be made on both a local and European level.