A comparative analysis of the place of supply rules : the future of online gaming in Malta

Abstract

Purpose: The purpose of this study is to compare the current VAT Place of Supply Rules for electronically supplied services to the changes that will take place as a result of the EU VAT Directive in 2015. This study will then assess the impact that this will have on online gaming companies and assess whether Malta still remains a viable location for such companies to operate from. Design: The objectives of this study were achieved through vast amounts of research on the topic and through a number of semi-structured interviews with financial controllers of four online gaming companies. Findings: Through the interviews carried out it seems as though this change will have a negative effect on online gaming companies as they will have much more administrative and technical work. There is also the fear that such a change will result in more illegal gambling. Having said this all companies were confident that Malta will continue to be a viable location for their companies to operate from and for new companies to start operations. Value: As this change to the place of supply rules will take place in 2015 it is very difficult to assess with absolute certainty the effect that this change will bring about. It is sincerely hoped that this study will encourage further research so that the change will be as smooth as possible.