Keywords
Summary

Keywords

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Tax provisions ° Harmonization of laws ° Turnover taxes ° Common system of value added tax ° Taxable amount ° Provision of services ° Consideration actually received by the provider of services ° Slot machines ° Exclusion of the fixed proportion of the stakes compulsorily paid out to players in the form of winnings

(Council Directive 77/388, Art. 11 A(1)(a))

Summary

The taxable amount in respect of a provision of services within the meaning of Article 11 A(1)(a) of the Sixth Directive 77/388 consists of the consideration actually received in return for the service provided. In the case of gaming machines offering a chance of winning (slot machines) which, pursuant to mandatory statutory requirements, are set in such a way that they pay out as winnings a certain percentage of the stakes inserted, the consideration actually received by the operator in return for making the machines available consists only of the proportion of the stakes which he can actually take for himself.

Consequently, the aforementioned provision must be interpreted as meaning that the taxable amount in respect of such machines does not include the statutorily prescribed proportion of the total stakes inserted which corresponds to the winnings paid out to the players.