European Gaming Lawyer magazine Spring 2014 | Page 36

VAT Changes in Europe – Consequences
for Remote Gaming Operators
By Frieder Backu, Partner with SSW Schneider Schiffer Weihermueller

T

Frieder Backu

he taxation of electronic services
provided to consumers has been
subject to a number of changes
during the last decade. At the end of
2007 and after years of dispute
in particular with Luxembourg
the EU Finance Ministers once again agreed on
substantial amendments on the VAT regime. Due
to the fact that the agreed amendments would have
substantial economic consequences it was decided
that the most relevant changes should become
effective as of January 2015 after a transition period.
Under the new regime electronic as well as
telecommunications and broadcasting services to
consumers shall be generally taxed where the
recipient is established. These amendments will
have far-reaching consequences for EU based
providers of electronic services. They will also
affect remote gaming operators who are offerin