New Swedish Gambling Tax Enters into Force with Limited Time for Compliance
The new Swedish gambling tax
There are some potential challenges that may occur due to when and how this tax should be reported.
Since January 1, 2019, the new Swedish gambling tax is now applicable. While the tax itself is straightforward, there are some potential challenges that may occur due to when and how this tax should be reported.
The new Swedish gambling tax
The new Swedish Gambling Tax stipulates that profits from taxable gambling will be subject to an excise duty of 18%, calculated on the difference between the total stakes and the total payouts of Swedish players during a taxable period, i.e. one calendar month. It is the company holding the Swedish gambling license who is liable for the tax.
In terms of the tax itself, while the calculations are not complicated, there are questions related to specific issues such as participation of Swedish players in poker games and the taxation of betting exchanges.
When to report the Swedish gambling tax
The gambling tax should be reported on a monthly basis. Based on information provided by the Swedish Tax Agency, there will be three different due dates for the gambling tax return, and thus also the payment of the tax, depending on when regular Swedish VAT is reported:
- Companies that report Swedish VAT on a monthly basis – The January period for the new Gambling tax should be reported and paid the 26th of February (the 26th in the month following the month of income).
- Companies that report Swedish VAT on a quarterly basis – The January period for the new Gambling Tax should be reported the 12th of March (the 12th in the second month following the month of income).
- Companies that report no Swedish VAT– The January period for the new Gambling Tax should be reported 12th of February (the12th in the month following the month of income).
Please also note that companies with a yearly turnover subject to Swedish VAT exceeding SEK 40 million are required to report VAT on a monthly basis.
One very important issue to consider is that supply of gambling services is generally not subject to Swedish VAT. Hence, companies whose only activity on the Swedish market is to provide gambling services should generally not have to report Swedish VAT. As such, these companies will have less than two weeks to calculate, report and pay the new gambling tax.
How to report the Swedish gambling tax
The gambling tax return should, as a main rule, be submitted on paper, but it is also possible to file it electronically. However, a tax return can be filed electronically only by using a private individual’s Swedish e-Identification. A Swedish e-Identification can only be obtained by someone with a Swedish social security number.
Hence, a foreign company would have to engage a Swedish person (in-house or external) to file the gambling tax return electronically.
KPMG comments on reporting Swedish Gambling tax
Many companies will have to calculate, report and pay the new gambling tax in a very short period of time and many will require a Swedish private individual in order to file the return electronically.
KPMG Sweden has developed KPMG DOT, a Gambling Tax Tool, that can help to automatically calculate, complete, and electronically file the required gambling tax return in Sweden and other countries.
Please contact with us if you would like to know more.
Mattias Bergman
Head of Legal Services
+46 70 939 66 64
mattias.bergman@kpmg.se
Josefin Gustavsson
Legal Services
+46 70 914 43 87
josefin.gustavsson@kpmg.se
