Everything you need to know about the new gambling tax in 2018 in Holland.
Have you won some money in a lottery? As a Dutch player you have to pay gambling tax. Recently, the government decided to temporarily increase this tax. Since January 1, 2018 you have to pay 29 instead of 30,1 percent. How do you implement this increase in your gambling tax return?
You need to map the gross returns of your gambling profits as fast as possible after the tariff increase. The deadline to do so is January 31, 2018. It’s not that difficult. You fill in the gross returns in your gambling tax return of December 2017. Then you pay a gambling tax of 29 percent on your returns.
Gambling taxes for slots route operators
Perhaps you’re not a casino player but a slot route operator who is active on several locations. In that case you have to map the gross returns of the slots until January 2, 2018. Subsequently, you pay 29 percent gambling tax on these returns. On the next returns a tax of 30,1 percent is required. Have you opened your slots on January 1st at 00.00 p.m.? In that case you determine the gross returns before the first opening after January 1st at 00.00 a.m.
Gambling tax before and after 1.00 p.m
You could always ask our help if not everything about the new gambling tax law is clear. For example, what if the slots that you’ve opened at New Years Eve at 09.00 a.m. close on January 1st at 01.00 p.m.? Imagine that you open the doors again at January 1st at 1.00 a.m. In that case your systems cannot identify the results at midnight. Don’t worry about this. You have to pay a 29 percent gambling tax on the gross results of the slots that were used before January 1st, 1.00 p.m. For every gains after 1.00 p.m you pay a tax of 30.1 percent
Everything about the gambling tax in- and outside Europe
It feels great to win a great amount of money in a lottery. However, some countries use a gambling tax. This is not only meant for winners who have to pay taxes above a certain amount of money. Perhaps you have a lot of questions about the gambling tax. For which groups does the gambling tax also apply, for example? After reading the following article you know everything about the gambling tax in- and outside Europe.
When do you need to pay taxes?
Do you like to take a gamble? Hopefully you’re the lucky winner of a nice prize. However, in most cases you cannot keep the entire amount of money. If a national game of chance is not a casino game, slot machine or an online game, the winner is always the one who has to pay taxes. Think about lotteries, quizzes and wagers for example. Prize winners of international online games or other games of chance abroad are required to pay a gambling tax on their prize money as well.
Gambling tax in the Netherlands
In the Netherlands both gambling organizers and winners are required to pay a gambling tax. At the moment it’s not legal to organize online games of chance in this country. If you still do this, a gambling tax is required. They need to pay for the differences between the bets that were received and the pay-out of your prize money. Sometimes people play against each other and receive a provision as a result. It’s also required to pay a gambling tax on this provision. Winners of national online games of chance don’t have to pay taxes though.
Do you also have to pay when visiting online casinos?
Some Dutch gambling enthusiasts like to visit international casinos to test their luck. Perhaps you’ve won at a casino in Las Vegas, for example. Great news! If a Dutch citizen wins a prize at an international online game, he or she needs to pay a gambling tax in the Netherlands. Have you already paid a gambling tax abroad? Then it’s not necessary to pay again in the Netherlands. There’s more good news: you also don’t have to pay taxes for money that has been won in a casino game or a slot game within the European Union. This applies for the EU though, because paying gambling taxes is required in the rest of the world.
Perhaps you’ve enjoyed an international game of chance recently. Have you won? Congratulations! You now need to pay for the so-called monthly positive return. It’s not as complicated as it seems actually. The positive return is the total amount of prizes you’ve won online minus your total number of bets. You need to create an account for an online casino for a reason. Over here the information about the debited and credited bets can be found.
Gambling taxes for companies
There are several rules for companies who organize games of chance. They need to pay taxes for the organization of national games of chance and the organization of international online games of chance. Slot machine operators can’t avoid paying gambling taxes as well. In that case the license to exploit games of chance should be on your name. The slot machines should be placed in the Netherlands and all need to have a special sticker with your details.
Gross price and net price
Although the prize winner is the taxpayer, it is the organizator of the game of chance who actually deducts the taxes on the gross prize. This mean that the organization pays the taxes to us. As a result, the net price is paid out to the winner. Sometimes the situation can be a little different, for example when the prize doesn’t contain money but a product. Think about a trip or a car. In that case the company that organizes the game of chance is allowed to pay the gambling tax itself. It actually means that gambling tax is a part of the prize itself.
Always keep a good administration
It’s very important to keep a good administration. Do you want to know which details are important for the tax authority? Then go online and search for information about slot machines and a correct administration. If you’re Dutch, look for ‘Handreiking Kansspelautomaten en een juiste administratie’. This is guide that helps you maintaining a correct administration for your slot machines.