Gambling Point Of Consumption Tax



  1. Point Of Consumption Tax Gambling Uk
  2. Uk Gambling Commission Point Of Consumption Tax
  3. Point Of Consumption Tax Gambling Australia
  4. Gambling Point Of Consumption Taxable

The point of consumption tax is calculated at 10 per cent of the net NSW wagering revenue that exceeds the financial year threshold for bets that are placed in NSW.

Net NSW wagering revenue

Victoria will impose an 8% point-of-consumption tax on online betting agencies, barely half the rate introduced or promised in other states. The tax would start from January and would raise an.

Consumption

Point Of Consumption Tax Gambling Uk

  1. The RGD rate is in section 155 (3) of Finance Act 2014. Currently, RGD is chargeable at the rate of 15% of the gaming provider’s profits on remote gaming for an accounting period.
  2. Under the new system, the 10 per cent point of consumption (PoC) tax will be levied on all Australian-based wagering operators. A PoC tax ensures operators pay taxes on gambling activity where the associated harms occur. Tax rate and tax-free threshold A common PoC tax rate of 10 per cent will apply to all types of wagering products.
  3. Gambling Wagering Current wagering and betting tax structures will be replaced with a point of consumption wagering and betting tax from 1 January 2019. The State Revenue Office (SRO) is responsible for administering the tax, which includes collecting the tax and ensuring wagering and betting entities comply with their tax obligations.

Your net NSW wagering revenue is calculated as the sum of the following.

1. NSW totalizator bets Total of all your NSW revenue from totalizator pools during the period.
2. NSW betting exchange bets Total of all your fees and commissions for NSW betting exchange bets.
3. Other NSW bets

Calculated by:

Total of all NSW bets, including bets placed at fixed odds and totalizator derived odds, and the face value of any free bet.

plus

Total fees and commissions associated with making the bets.

less

Total winnings paid or payable in relation to those bets, including winnings paid for free bets, but not including winnings paid in the form of credits or entitlements that can't be converted to money.

less

Total refunds paid or payable in relation to those bets, not including the amount paid or payable in credits or entitlements that can't be converted to cash.

4. Unclaimed winnings for NSW bets Amounts you're entitled to retain for unclaimed NSW winnings during the period.
5. Other amounts Amounts you're entitled to be paid in relation to unclaimed NSW winnings during the period.
Consumption

Taxable net wagering revenue

When preparing your monthly returns, calculate your net NSW wagering revenue and deduct the threshold entitlement for the financial year.

Calculating a free bet

The face value of a free bet (also a bonus bet) must be included when calculating your net NSW wagering revenue. Any amount reclaimed from a successful bet must not be included as part of total winnings.

Example 1: Customer A receives a free bet valued at $200, which results in zero winnings.

Total other NSW bets $200
plus total fees and commissions $0
less total winnings $0
less refunds $0
Other NSW bets$200

Example 2: Customer B receives a free bet valued at $200, which results in a gross win of $750.

The betting operator deducts $200 (value of free bet) from the gross winnings, resulting in a net winning of $550.

Total other NSW bets $200
plus total fees and commissions $0
less total winnings $550
less refunds $0
Other NSW bets-$350

Bets placed before 1 January 2019

Net NSW wagering revenue is calculated according to when a bet is placed and the cash received, not when an event occurs or a bet is settled.

Bets placed before 1 January 2019 aren't subject to point of consumption tax. Winnings from these bets can't be claimed as a deduction when calculating your net NSW wagering revenue.

Determining a customer’s location

How bet is made Customer's location
On course or in person All bets placed from a venue within NSW are captured based on the location where the transaction takes place.
Online or by phone All bets placed online or by phone are captured based on the physical location of the customer when placing a bet.

You must take reasonable steps to identify the physical location of the person making a bet. You can rely on:

  • the residential address of the person making a bet
  • the principal place of business of the corporation making a bet.

You must use an alternative address if you know or suspect the residential or business address isn't the physical location of the person making the bet. For example, where a customer discloses to the phone operator that they are currently in NSW and their residential address is in another state.

Liquor & Gaming NSW will undertake compliance activities to ensure that the customer’s address is accurate. Interest and penalty tax may apply where reasonable steps have not been taken to capture the physical location of the person making the bet.

GST and net NSW wagering revenue

Net NSW wagering revenue is the GST inclusive amount.

Example

A betting service provider receives $5,000 in bets and pays out $4,000 in winnings. Point of consumption tax will be payable on $1,000.

From 1 January 2019, if you're a betting service provider licensed in Australia, you must pay a point of consumption tax on all bets made by customers located in NSW at the time the bet was placed:

  • in person
  • online, or
  • by phone.

Bets include:

  • bookmaker
  • betting exchange
  • totalizator
  • lay-off bets
  • free bets.

Betting service providers include:

  • bookmakers
  • a person who operates a betting exchange
  • a person who operates a totalizator.

There are no changes to betting tax and industry funding arrangements paid by the totalizator licensee.

We administer the tax, issue assessments and reassessments, collect the tax and approve payment arrangements. If you’re dissatisfied with an assessment or decision we’ve made, you can lodge an objection or request a reassessment.

Liquor and Gaming NSW is responsible for betting service providers complying with the point of consumption tax.

Tax rates and thresholds

The tax is 10 per cent of the net NSW wagering revenue that exceeds the financial year threshold for bets placed in NSW.

DateThreshold
From 01/01/2019 to 30/06/2019 $500,000
From 01/07/2019 to 30/06/2020 $1 million

Uk Gambling Commission Point Of Consumption Tax

The annual threshold:

Consumption
  • applies as a reducing balance from the start of the financial year
  • can't be carried over to another period.

More information

Point Of Consumption Tax Gambling Australia

Point of consumption tax is legislated under Part 4 of the Betting Tax Act 2001.

If you have questions about the point of consumption tax, contact us.

Gambling Point Of Consumption Taxable

For enquiries about compliance audits, contact Liquor and Gaming NSW.