The Dutch gambling regulatory authority Kansspelautoriteit (KSA) announced that it will consider offering partial tax refunds to physical gambling operators that were forced to close during the national lockdown policies in 2020 and 2021 due to the COVID-19 pandemic. This move stems from a lawsuit filed by an operator to the State Council in July this year, arguing that gambling taxes should not be paid during the forced closure period. The State Council ruled in favor of the operator, ordering the refund of taxes and statutory interest for the period when they could not operate. KSA stated that all affected operators can submit their tax refund applications for the period 2020-2021 before November 14, but reminded applicants to carefully assess, as the refund may be affected by financial support received during the pandemic and current tax arrears should be considered.
Background and Origin of the Tax Refund Policy
The Dutch gambling regulatory authority Kansspelautoriteit (KSA) announced that it will consider offering partial tax refunds to physical gambling operators that were forced to close during the COVID-19 pandemic in 2020 and 2021. This policy originated from a lawsuit filed by an operator to the State Council in July this year, questioning the fairness of paying gambling taxes during the closure period.
The State Council ruled in favor of the operator, confirming that no taxes should be paid during the forced closure and that the corresponding taxes should be refunded.
Application Conditions and Time Limits
Affected operators can apply for tax refunds for the period they were forced to close during the pandemic from 2020 to 2021. KSA requires eligible operators to submit their applications before November 14, 2025, after which applications will no longer be accepted.
Applications must clearly specify the specific time period for which the tax refund is requested and provide corresponding closure proof and tax payment records.
Scope and Calculation Method of the Tax Refund
The tax refund will be calculated based on the actual number of days the operator was forced to close due to the pandemic, refunding the corresponding period's gambling tax. In addition to the principal, KSA will also pay statutory interest from the tax payment date to the refund date.
The refund amount will be precisely calculated to ensure that operators receive fair compensation for the taxes overpaid during the period they could not operate.
Regulatory Authority Statement and Procedures
KSA confirmed in a statement on October 17 that it will implement the State Council's ruling and open tax refund applications to all affected operators. The regulatory authority stated: "The COVID-19 pandemic is a special period, we will review the accuracy of all applications and assess each case to determine eligibility for a refund."
KSA emphasized that it will fairly handle each application to ensure that operators complying with regulations receive their due refunds.
Factors Influencing and Considerations
KSA reminds operators that tax refund applications may be affected by financial support received during the pandemic. If an operator has received government COVID-19 pandemic aid, the refund amount may be adjusted accordingly.
The regulatory authority advises operators to carefully assess whether the application is "worth it," especially considering the current tax arrears situation.
Legal Basis and Effectiveness of the Ruling
The State Council's ruling establishes an important precedent, confirming that operators do not need to pay gambling taxes during forced closures. This ruling has universal effect for all affected operators, and KSA must implement the tax refund policy accordingly.
Legal experts believe that this ruling reflects the principle of commercial fairness during the pandemic, providing a reference case for similar situations.
Industry Impact and Operator Response
The tax refund policy is expected to affect multiple operators in the Dutch physical gambling industry. During the pandemic, casinos and gambling venues were forced to close multiple times, causing significant financial losses.
Industry representatives welcomed the decision on tax refunds, considering it a reasonable compensation for the difficulties during the pandemic, but also expressed concerns about the complexity of the application process.
Financial Support and Tax Refund Relationship
KSA explicitly stated that any tax refund will consider the financial support an operator received during the pandemic. If an operator has received COVID-19 pandemic aid, the refund amount may be deducted partially or fully from the aid amount.
This adjustment aims to avoid double subsidies and ensure the rational use of public funds.
Application Process and Document Requirements
Operators need to submit their tax refund applications through KSA's official channels, providing detailed operating records and tax payment proofs during the forced closure period. Applications must include specific closure dates, gambling tax amounts paid, and corresponding supporting documents.
KSA will review the accuracy and completeness of each application, and may require additional materials or explanations.
Subsequent Handling and Time Frame
KSA stated that it will complete the review within a reasonable time after receiving the applications and process the refunds as soon as possible. The review time may vary depending on the number of applications and their complexity.
Successful applicants will receive their refunds, including principal and statutory interest, after the review is approved.
Industry Advice and Professional Consultation
KSA advises operators to consult financial advisors before applying, to fully assess the financial impact of the tax refund. Especially, it is necessary to clarify the connection between financial support received during the pandemic and the tax refund.
Professional consultation can help operators make wise decisions and avoid unnecessary financial complexities.
