Dutch Gaming Regulator Offers Partial Tax Refunds for Covid-19 Closures

Operators across the Netherlands were forced to shut their doors for set periods in line with national pandemic lockdowns, to help stop the spread of Covid-19.

Council of State Ruling Sets Precedent

One operator impacted by the closures raised a case with the Dutch Council of State in July this year. The operator argued that KSA should not have imposed a gambling tax while the venue was closed for part of 2020.

The council confirmed the unnamed operator was exempt from paying gambling tax on the days when it could not open. The council ruled the operator should be refunded the tax for these periods.

Refund Application Window Opens

Following the ruling, KSA will open up similar refund options to other operators also impacted by Covid-19. Those that think they fit the criteria have until 14 November to submit a claim for the period between 2020 and 2021.

In practice, this means a partial refund of the levies based on the periods in which the sector was forced to close due to the coronavirus. This refund will also include the statutory interest from the payment date by the licence holder, to the repayment date of the tax.

KSA announced the refund scheme in a statement on 17 October.

Potential Impact on Previous Covid-19 Support

While the regulator will consider all applications, it issued a warning over the wider impact of the scheme.

Any refund could be impacted by financial support operators received during the pandemic. KSA urged gambling businesses to consider whether they currently owe any tax and if a refund application is worthwhile.

Any adjustment would automatically be included when determining an operator’s final gambling tax for 2022.

The coronavirus period was an exceptional. We will review all applications for accuracy and assess each case individually to determine whether to issue a refund. However, we warn that a refund of the gambling tax may have consequences, for example, previously received Covid-19 support or taxes due. It is the provider’s own responsibility to determine whether a refund application is worthwhile.

Source: Kansspelautoriteit (KSA)