The introduction of new tax rules for non-UK gambling operators later this year means that offshore companies will have to apply for HMRC approval of a fiscal or administrative UK representative as part of the Gambling Tax Reform registration process.
From 1 December 2014, General Betting Duty (GBD), Pool Betting Duty (PBD), and Remote Gaming Duty (RGD) will apply on a 'place of consumption' basis instead of the 'place of supply' basis.
For the first time, remote gambling operators will become liable to a UK gambling tax as they are to pay UK gambling duty on their gross gambling profits from UK customers no matter where in the world the operators are located.
A business with a liability to GBD, PBD or RGD under the new rules, must register for the appropriate tax, submit returns and pay any tax due in sterling.
A remote gambling operator based outside the EU and which is not in a group, must (with some exceptions) appoint a representative in the UK who must make available to HMRC any information or documents which HMRC reasonably requires.
Operators affected by this requirement have the option of appointing a fiscal representative, or a security and administrative representative.
The guidance explains how to appoint a representative; HMRC’s criteria in considering nominated representatives; and security requirements.
The approval process takes about three weeks.
The guidance is available at http://www.hmrc.gov.uk/gamblingtaxreform/appoint-rep-uk.pdf.
More details about the gambling tax reform are available at http://www.hmrc.gov.uk/gamblingtaxreform/gtr-info-note3.pdf