2015 cashflow gets hit by €15 million EU tax payment

norbert PLC have announced that its net revenue and cashflow will be reviewed in 2015 due to new European Union (EU) VAT rules that came into action this January.

The operator expects to pay an additional €15 million in VAT, due to recent changes EU tax regulations concerning digital business/services.

Changes to EU VAT regulations concerning digital services, has seen EU member states tax businesses on where their consumers are located. The law changes came into effect on 1 January, member states have been allowed to place the tax upon businesses offering igaming services. governance released the following statement regarding the imposed VAT taxes;

“Whilst substantial uncertainty remains, in the light of the new rules the board now expects to file for and pay VAT in certain EU Member States and that in 2015 total net revenue and cashflow will be reduced by approximately EUR15 million before any mitigating actions”.

It is expected that the operator will be hit hardest by VAT levies for its services in France and Germany, where corporate taxes will reach 20% on gambling verticals

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