Bulgaria Introduces VAT on Online Gambling

It has been rather a long time since we heard any online gambling news from Bulgaria.

According to the sources in the Balkan country, the Bulgarian Finance Minister’s March 2012 to put a VAT of 15 percent on any form of gambling operation turnover was passed in the 2013 State Budget session of the parliament. Simeon Djankov’s gaming tax is accompanied with a VAT levy on all bank deposits and other forms of income from the financial markets.

The new burdens are part of the amendments to the national Value Added Tax Act. The news came shocking after some members of the Bulgarian government announced their intentions in May 2012 to actually lower the VAT to 7 percent for online gambling in Bulgaria to attract foreign international operators.

The proposal to lower the online gaming VAT was eventually rejected the due to strong opposition and lobby work from the national gambling industry.

As for 2013, 15 percent tax rate is put on any conventional and online gambling turnover. The parliament accepted the changes in the Bulgarian gambling laws without any debate.

From the beginning of 2013, banks operating in Bulgaria will have to withhold the 10 percent tax on interest earned from fixed term client deposits its clients, and transfer the collections to the tax authorities.

Also officially announced: the Bulgarian State Gambling Commission will start to close down and block any unlicensed online gambling websites early next year.