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While the tax itself is straightforward, there are some potential challenges that may occur due to when and how this tax should be reported. It is the company holding the Swedish gambling license who is liable åkte the tax. In terms of the tax itself, while the calculations are not complicated, there are questions related to specific issues such as participation of Swedish players in poker games and the taxation of betting exchanges. When to report the Swedish gambling tax The gambling tax should bedja reported on a monthly basis. Based on information provided by the Swedish Tax Agency, there will be three different due dates for the gambling tax return, and thus also the payment of the tax, depending on when regular Swedish VAT is reported: Companies that report Swedish VAT on a monthly basis — The January period for the new Gambling tax should be reported and paid the 26th of February the 26th in the month following the month of income. Companies that report Swedish VAT on a quarterly basis — The January period for the new Gambling Tax should be reported the 12th of March the 12th in the second month following the month of income. Companies that report no Swedish VAT— The January period for the new Gambling Tax should be reported 12th of February the12th in the month following the month of income. One very important issue to consider is that supply of gambling services is generally not subject to Swedish VAT.
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New gambling law promises big changes to industry
The proposal includes a new Gambling Act that transfers the national monopoly into two separate sectors, a competitive, open market sector and a non-competitive sector. The non-competitive sector will include landbased casinos in designated premises, token gaming machines, lottery and scratch cards knipa landbased bingo, while the open market will primarily include online gaming, sports betting and horse betting. The Act is intended to open the market to competition and competitive neutrality knipa establish a system of sanctions both for controlling the activities of licensees and for prosecuting those outside the licensing system, but that are targeting the Swedish market. The committee has suggested that the proposal should bedja effective as per 1 January Highlights of the proposal Licensing In essence, the proposal means that those wishing to provide or arrange gambling in Sweden are to have a license. Also those possessing or manufacturing certain gambling equipment are to have a license, as are those manufacturing, providing, installing or modifying software for games in connection with online gambling. In addition, heavy penalties are proposed åkte providing gambling that targets the Swedish market without being licensed. A ban on payment transfer is introduced against those outside the licensing system but which are still targeting Swedish customers.