French General Tax Code
In forceA fee collected for the benefit of the racing companies is instituted, intended to finance the public service missions defined in Article 2 of the law of 2 June 1891, the purpose of which is to regulate the authorisation and operation of horse racing. This fee is based on the gross gaming revenue, as defined in the first paragraph of article 302 bis ZJ, from online horse betting mentioned in article 11 of Law no. 2010-476 of 12 May 2010 relating to the opening up to competition and the regulation of the online gambling sector, in respect of races organised by French racing companies. This fee is payable by companies that must be subject, as online horse betting operators, to the authorisation mentioned in Article 21 of the aforementioned Law no. 2010-476 of 12 May 2010.
The rate of the fee is set by decree. It may not be less than 22% or more than 31%.
This fee is payable when the event or events on which the game is based take place. This fee is declared and settled in accordance with the following procedures:
1° For those liable for value added tax subject to the normal actual taxation regime provided for in 2 of article 287, on the appendix to the declaration mentioned in 1 of the same article 287 filed in respect of the month or quarter during which the liability occurred ;
2° For those liable for value added tax subject to the simplified tax regime provided for in Article 302 septies A, on the annual declaration mentioned in 3 of Article 287 filed in respect of the financial year during which the liability arose;
3° For persons who are not liable for value added tax and taxable persons not established in France who avail themselves of one of the special schemes mentioned in Articles 359 and 369 ter of Council Directive 2006/112/EC of 28 November 2006 on the common system of value added tax, on the annex to the declaration provided for in 1 of Article 287 of this code filed with the department responsible for collecting the tax under whose authority the registered office or main establishment falls no later than the 25th of the month following the month during which the liability arose.
It is collected and audited according to the same procedures and subject to the same penalties, guarantees, securities and privileges as value added tax. Claims are lodged, investigated and judged according to the rules applicable to this same tax.
It is allocated in proportion to the stakes bet on each speciality, trotting and galloping, to the horse racing parent companies. The latter keep separate accounts to which the proceeds of the fee are attached.
