2016 Betting services in Denmark - PwC · In order to offer betting services in Denmark, you must...

Betting services in DenmarkGet an overview of the rules for offering betting services in Denmark

2016

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On 1 January 2012, the Danish betting market was liberalised. Until that date, the Danish betting market was dominated by one single market player who was largely able to determine the types of betting services offered in Denmark.

The liberalisation of the Danish betting market changes this situation as the rapidly developing market is now open to other providers of betting services – this also applies to you!

As the betting market is considered as being uncertain, very restrictive rules have been laid down resulting in a number of challenges to enterprises that wishes to offer betting services to Danish betters.

Through its global network, PwC has access to some of the most experienced advisers in the world of betting, and we offer advisory services on all aspects of establishment in Denmark as well as business optimisation.

This folder presents seven main areas in which PwC offers assistance:

• Permissions• Optimisation of corporate structure• VAT and special payroll tax• Betting duty• Financial statements• Report regarding supply of betting and gaming services

after the first year• Personal tax

The text in each main area describes a number of issues to note before entering the Danish betting market and also after having started up betting activities.

Jan M. HuusmannPartner, Territory Tax Leader

E: [email protected]: +45 3945 9452

Betting services in Denmark

Betting services in Denmark 3

Compliance with formal requirementsIn order to be able to offer betting services in Denmark, the individual/the company pursuing such activities must meet a large number of requirements. For example, a number of requirements are made in respect of the applicant for the betting licence, business operations being professionally and financially sound, and there are a number of requirements relating to marketing of the betting services. It is therefore important that you comply with these requirements in order to obtain and keep your permission to offer betting services in Denmark.

Application for permission to offer betting servicesIn order to offer betting services in Denmark, you must as a general rule obtain a licence from the Danish Gambling Authority. The Danish Gambling Authority has established a number of extensive documentation requirements to be met when applying for a betting licence, including a business financing scheme and documentation of risk assessment in various areas. You should ensure that all requirements are met when applying for a betting licence.

Label schemeThe licence is linked to a label scheme which you may use in your marketing efforts. It is important, however, that you ensure the correct use of the label scheme.

Depending on the manner in which your business is structured, you may risk having to pay both VAT and special payroll tax in Denmark. It is therefore essential that your corporate structure is optimised.Also the risk for obligation to pay corporate tax in Denmark must be considered. In some situations it is chosen to have a company or a branch in Den-mark. A Danish company or branch will in general be liable to pay corporate tax in Denmark. It is though important that you consider if there is an obligation to pay corporate tax in other situations, such as situations where you have employees in Denmark engaged in sale or marketing.

Permissions

Corporate structure

Elizabeth BrandtDirector


4 Betting services in Denmark

As a general rule, providers of lottery, betting, poker, online casino or similar services are not subject to VAT in Denmark as such activities are VAT-exempt in Denmark. Instead, a special Danish payroll tax will often be imposed and, depending on the specific organisational structure, there may also be certain activities which are subject to VAT. The following issues should be noted in respect to VAT and payroll tax:

VAT registration and return If you have activities subject to VAT in addition to the VAT-exempt activity of providing betting services, or if you purchase goods for business purposes abroad, you must be registered for VAT in Denmark. Moreover, you must calculate and settle VAT through your VAT return. The required frequency of this depends on the level of sales subject to VAT.

Compliance with invoicing requirements Every time you issue an invoice for VAT taxable sales in Denmark, you must comply with a large number of requirements. Among other things, an invoice must meet a number of VAT requirements in order to be accepted by the Danish tax authorities. It is therefore important to ensure that correct invoices are issued in compliance with the invoicing rules.

Reporting of EU sales without VAT (VAT information exchange system - VIES) If you sell goods or services without VAT to other EU countries, your sales must be reported to the VAT information exchange system (VIES).

Special payroll tax If you offer betting services and have employees in Denmark, you may be liable to the special Danish payroll tax. In this case, you will have to calculate and pay payroll tax in respect of the employees performing activities in relation to the VAT-exempt activity. It is therefore important that you get a general view of your business activities in order for the special payroll tax to be calculated on a correct basis.

VAT and special payroll tax

Line Høvring LassenAssistant Manager



Organisers and providers of betting services in Denmark must be registered for betting duty and settle betting duty with the Danish tax authorities. The rules for calculating betting duty are complex, and the calculation varies depending on the type of betting service offered. It is therefore important to note the following issues:

Registration for betting duty Providers of betting services in Denmark must always be registered for betting duty. This also applies to businesses that are not established in Denmark and, for example, only offer online betting. Registration for betting duty must be made within four weeks of obtaining your betting licence from the Danish Gambling Authority and before initiating any betting. It is therefore important that you are registered for betting duty before initiating any betting activity in Denmark.

Calculation of betting duty Duty is payable on all betting services offered to the public in Denmark. The betting duty varies depending on the type of betting offered. Thus, the calculation may be complex – especially if you offer several types of betting. It is therefore important that you get a general view of the various calculations and rates of duty applying to the types of betting services provided by you.

Reporting of betting duty Reporting and payment of betting duty to the Danish tax authorities also depends on the type of betting offered. The reason for this is that the duty period varies from one betting event to the next, being either a week, the calendar month or the full duration of the betting event, and the deadline for reporting the betting duty varies from 5 to 15 days after the duty period. Many providers of betting services therefore have to observe relatively many reporting requirements and deadlines.

Joan Faurskov CordtzDirector


Betting duty


Businesses establishing betting services in Denmark must prepare and issue an annual report. PwC has composed a team with experience from other betting providers. This means that we will be able to give you exactly the advice that you need. In addition to annual reports and financial statements, we have broad experience with financial reporting.

Make sure that your audit is performed properlyWe continuously update and develop our knowledge and knowhow within betting services to your benefit. Our working methods and tools are well-tested, always up-to-date on legislative requirements and are used every day on thousands of audits, locally and globally.

These resources give you the opportunity to find with us a variety of audit expertises adding value to your business. But probably the most important thing is that we can provide your annual report the credibility offered by our audit reports and statements.

One point of contact backed by a full team of expertsNo two assignments or clients are the same. Therefore, we customise our services to match the individual client. When you choose PwC, we will assign to you a team of people with the necessary experience, industry knowledge and insight into the very aspects characterising your business situation.

You will be assigned a primary contact who has the broad perspective and maintains in-depth insight throughout the audit and review of your annual report. If assistance from some of our speciality experts is required, your contact will help you find the right person. This applies locally as well as internationally.

This makes the audit efficient – and offers you the necessary professional sounding board.

Mikkel SthyrPartner


Leif Ulbæk JensenPartner


Financial statements and audit


An enterprise offering betting or online casino services in Denmark must, one year after the gambling services have been initiated, prepare a report to the Gambling Authority in Denmark. The report must describe whether, in the past year, the enterprise has been offering gambling services in accordance with the terms and conditions stated in the permission obtained by the enterprise and in accordance with Danish gambling legislation.

It is also expected that a report is to be prepared and submitted one year after the permission to offer gambling services in Denmark has been renewed and deployed.

Contents of the report

The report consists of four parts. The first two parts must be completed by the licence holder and are to contain statistical information as well as a description of compliance with specific Danish gambling legislation rules. In the third part, a firm authorised by the Gambling Authority is to certify whether the enterprise in its capacity of licence holder has complied with the rules of Danish gambling legislation. In the fourth part of the report, the enterprise is to state whether it agrees with the certification issued in part three.

PwC has been authorised by the Gambling Authority to prepare the third part of the report. This implies that PwC may assist your enterprise in certifying part three of the report to the Gambling Authority. Please contact us for further information.

Deadline for submitting the report to the Gambling Authority in Denmark

The report must be submitted to the Gambling Authority no later than 14 months after the date where the gambling services have been initiated in accordance with the permission. This means that if the gambling services are initiated on 1 January 2012, the Gambling Authority must receive the report by 1 March 2013.

Report on offering gambling services after one year

Leif Ulbæk JensenPartner


Henrik JensenPartner


Rikke Lund-KühlPartner



Are your employees working all around the world? Do you, as a business, have an overall view as to who are travelling and what it costs? Does this match your strategy?

When an employee has cross-border assignments, questions often occur in regards to terms of employment, tax and social security for both the employee and the employer. Other questions may concern compliance with formalities, such as work permits, special business and employee registrations, etc.

To a great extent, the answers to the many questions depend on the employees’ period of stay abroad, for example whether they are• business travellers • commuters • employees assigned to a foreign country

As an employer, it is important to ensure that all registrations and permits are in place, that taxes and social contributions are paid in the right country at the right time and that you do not pay more than absolutely necessary. It is also important that the employee understands the procedure for taxes and social security (e.g. medical treatment) during their stay abroad.

PwC has the knowledge it takes to get a good grip of the necessary processes and rules. We have colleagues all over the world who will help us make sure that you get the right solutions for your business every time. In our experience, it is essential that the solutions we work out together match exactly the situation of your business, both when it comes to strategies and when it comes to any changes that may lie ahead.

Personal tax

Benedicte WibergPartner



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