THE European Union Court of Justice has ruled against Gibraltar being treated as an independent tax jurisdiction.
Seeking to separate its commercial status from the UK, the Gibraltar Betting & Gaming Association set a legal dispute against the Point of Consumption (POC) taxes introduced in 2014, which charge online gambling companies on revenue generated from British consumers.
The GBGA stated that the introduction of POC duties had resulted in Gibraltar licensed betting companies being ‘double taxed’, which infringed on EU ‘freedom of services’ laws.
However, the EU’s court of justice rejected the claim, stating that Gibraltar had gained its access to EU community business laws through its attachment with the United Kingdom, and said that the Rock and the UK should be treated as a ‘single member state’.
It adds uncertainty to Gibraltar’s gambling industry, which is said will be affected in the wake of Brexit.