As from 1st January 2015, the EU will implement a number of
changes in the place of supply rules, which will shift the place of
supply to the country of consumption of electronically supplied
services, amongst others. Since online gaming is included within
the definition of the electronically supplied services, VAT could
become chargeable in accordance with the regulations of the Member
State where the customer is established.
Even though the EU VAT Directive expressly exempts gambling from
VAT, the Directive allows Member States to apply such conditions
and limitations as they deem fit, to the application of the
exemption. This freedom granted by the Directive to the Member
States has created a severely inconsistent application of the
exemption throughout the EU. In fact there are a number of Member
States where gaming is not exempt, partly exempt or exempt subject
to a number of conditions, such as the holding of a gambling licence in that
jurisdiction or the
