Kindred Group has welcomed the decision to annul a constitutional amendment under which online gambling operators in Belgium were required to pay 21 per cent VAT.
The gaming group, which includes Unibet and 32Red among its online brands, has challenged the VAT charge since it came into effect in August 2016.
The Belgian government justified that amendment as a revenue source to boost the country’s tax income, in a move that would generate an estimated €39m annually.
The Malta-based Kindred challenged the ruling on the grounds that the VAT policy was incompatible with Belgium’s national gambling framework objectives.
Ewout Keuleers, group general counsel for Kindred, told TotallyGaming: “We are pleased to see that the Belgian constitutional court recognises the principle of the VAT directive that gambling should not be subject to VAT, but only to sector-specific taxation.”
The ruling from the Constitutional Court of Belgium is a welcome boost for those operating in Belgium.