The ‘Point of Consumption Tax or POC was a levy compulsory on online betting establishments by the UK Government back in 2014 as an improvement to the 2005 Gambling Act. The tax itself t has a opening rate of 15% and is intended at those slots that earn income in the UK but that are based in another location.
Before the 2014 was recognized it was widely standard that the UK had quite a liberal attitude towards gaming businesses with numerous premier gaming brands being found in Europe like Paddy Power, and William Hill all of which hail first from the UK.
This POC tax came to be because a huge many of online casino games UK which are run by British companies have their command center in other locations like Gibraltar, Jersey and the Isle of Man. The motive for this is because until fairly recently the law allowed those online businesses to pay their taxes to the nation that they were located in, and it didn’t matter where those online betting services were being used. This of course, was preferable to those businesses as the low duty rates were very much preferred, boosting revenue.
The Point of expenditure (POC) effectively taxes the slots and the betting revue at the ‘point of consumption’- that means in the nation where the games are being played, with the 15% tax being practical as the games are being played.
Those slots which are situated overseas will still have to pay those taxes that are necessary in their home state, and this is why the Point of use tax is so unpopular among a great many betting businesses, and has, in fact, led to some sites falling the prizes obtainable to players as well as some price hikes which has an bad knock-on effect on the players.
Those that support the Point of use tax believe that the British betting market is now fairer and safer as the number of notorious brands is limited and that the duty also ensures that off-shore operator adheres to the principles of security and validity that is demanded of them.