Tax authorities in the Netherlands have withdrawn an appeal to the country’s highest court, over taxation of PokerStars Dutch client’s winnings.
Taxwise Advocaten & Belastingadviseurs instituted an action on behalf of PokerStars player Freerk Post, against the Dutch Tax Authorities (Belastingdienst) arguing that PokerStars.eu operates under a license from Malta, which is an EU member state, and thus poker players residing in the Netherlands should not be taxed on their winnings.
The plaintiff claimed that it is contrary to EU law for Dutch players to be taxed on their winnings when using the services of an operator established within the EU.
On the other hand, the Dutch Tax Authorities argued that PokerStars was registered in the Isle of Man (not an EU member state) and therefore, its players should be subject to gaming tax.
However, the Amsterdam Court of Appeal agreed with the plaintiff and on the 19th November 2015, it ruled that winnings by Dutch players on PokerStars.eu are not taxable, as the site is licenced in Malta, which is a European Union member state.
Subsequently, the Dutch Tax Authority submitted an appeal attempting to overturn this previous judgment, but on the 3rd February 2016, it withdrew its appeal. Therefore, the ruling of the Amsterdam Court of Appeal which recognises the fact that PokerStars provides services from within the EU stands and Dutch players can play on PokerStars.eu without paying gaming taxes on their winnings.
This court decision is good news for PokerStars EU clients, who can now play on PokerStars.eu with the knowledge that they are exempt from paying taxes on their earnings. This ruling applies exclusively to PokerStars, and not to other competing online poker sites.
