Dutch gambling regulator Kansspelautoriteit (KSA) will consider offering partial tax refunds to land-based gambling operators that had to close during the Covid-19 pandemic in 2020 and 2021.
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.
One operator impacted by the closures raised a case with the Dutch Council of State in July this year. It 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. As such, it ruled the operator should be refunded the tax for these periods.
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,” KSA said in a statement on 17 October.
“This refund will also include the statutory interest from the payment date by the licence holder, to the repayment date of the tax.”
Tax refunds may impact Covid-19 financial support
However, while the regulator will consider all applications, it did issue a warning over the wider impact of the scheme.
It said any refund could be impacted by any financial support operators received during the pandemic. KSA also 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,” KSA said. “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.”
Operators impacted by Covid-19 can apply for a partial tax refund for 2020 and 2021. KSA warned operators to consider whether the application is “worthwhile”.