The 2015 VAT changes to the place of supply rules : implications for Maltese remote gaming companies

Abstract

Purpose: The primary objective of this dissertation is to assess the implications to remote gaming companies of a change in the place of supply rules. Moreover, the dissertation tackles issues such as the methods which diverse Member States apply the gambling exemption, the gap in legislation with respect to the taxable value on which VAT ought to be charged, the use of the Mini-One-Stop-Shop and most importantly, whether despite these implications Malta still remains a viable Member State to operate in. Design: The objectives of the study were achieved through the conduct of semi-structured interviews with the relevant stakeholders, both prior to and after the new rules came into effect. Findings: The interviews brought to light the implications to remote gaming companies which have arisen due to the new rules. Possibly the primary burden however, is the lack of harmonization of the VAT treatment of gambling across the EU. Conclusions: The results highlight the fact that despite the negative implications, the change has in fact, leveled the playing field across Europe with respect to remote gaming companies selecting a Member State to establish within. Moreover, Malta remains a viable Member State to operate in through the provision of an overall package which proves to be difficult to be matched by other Member States. Value: The remote gaming industry has a large macroeconomic presence in Malta and thus, it is important to assess the implications of any change in the fiscal environment which could possibly deter such companies from maintaining their presence in Malta. This dissertation provides recommendations at EU, national and business level in order to reduce any implications which have arisen.