MALTA HELPS GERMANY CHASE €10M LOTTOLAND TAX BILL

The Maltese tax authorities are seeking €10M in VAT payments owed by Malta-based Lottoland Limited, on behalf of the German tax authorities.

Established in May 2013 in Gibraltar, Lottoland was subsequently registered in Malta in 2019 and is now based at the St. Julian’s Business Centre. Its online offerings are operated by EU Lotto Ltd, which is registered in Gibraltar, along with Germany-based Deutsche Lotto and Sportwetten Limited. 

According to the Times of Malta, using a 2010 EU directive, German authorities requested Maltese help in pursuing the tax, and the case has been heard in front of a Maltese court. 

Despite Lottoland arguing it is not liable to pay the tax bill, Mr Justice Mercieca judged that the documents presented by German and Maltese tax authorities proved the company did owe the outstanding tax to the German authorities. 

Justice Mercieca clarified that the German request, under the EU directive, has given the Maltese tax authority the powers to deal with the outstanding tax as if it were a request for a civil debt due to the Maltese government.

AYO.NEWS says:

This could be something of a landmark case for the Maltese iGaming industry. Though the directive dates from 2010, it has been rarely used in Malta thus far – and gaming operators have probably felt pretty safe, hidden behind convoluted multi-company structures spanning several jurisdictions. Is this part of a concerted effort by Malta to clean up its act, or a one-off anomaly? Time will tell.