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The Italian Videolottery market is growing faster than initially expected. According to the data available on the press, 19,000 VLTs (out of the 57,000 that concessionaires can instal) have been installed so far generating a turnover during the first 3 months of 2011 of € 2.2 billions (i.e. € 1,280 per machine/day) with each VLT awarding on a daily basis € 1,152 in winnings, with profits for the owners of gaming halls of € 40/50 per machine/day and for the concessionaires of € 50/60 per machine/day.
Such a huge and rich market required a better monitoring of its actors. For this purpose the Italian Gambling Authority has now created a registry of all the entities involved in the offering of games through VLTs and AWPs. However, the tax-related consequences of the creation of the registry are not fully clear. Concessionaires are VAT-exempted entities and the so called “terzo incaricato” enjoyed the same regime. Now the category of “terzo incaricato” has been replaced by the entities listed in the registry that however cover a much wider category of operators including for instance gaming suppliers and providers of maintenance services.
Are the companies in the registry also VAT-exempted entities? Would the potential enlargement of such treatment compliant with EU VAT Directives? Concessionaires hope that the Italian tax authority will broaden the VAT-exemption to all the entities in the registry, gaming suppliers have a different view.
Do you want to discuss the above? Feel free to contact me, Giulio Coraggio.
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