The Netherlands may levy tax on German Eurojackpot prize
The Supreme Court has ruled that the Netherlands may levy tax on a large cash prize won by a Dutch player in the German Eurojackpot. The winner attempted to avoid the tax by arguing that the prize was won abroad, but the court did not agree.
The case involved a resident of the Netherlands who won a prize of several million euros through a German provider. According to Dutch legislation, gambling tax must be paid on gambling winnings above a certain amount. The winner argued that this did not apply to prizes paid out abroad, as this would lead to double taxation.
However, the court ruled that the winner's place of residence determines tax liability. Because the individual resides in the Netherlands, the Dutch tax authorities are authorized to levy tax on the amount won. Under the law, it does not matter in which country the lottery itself is organized or where the draw took place.
This ruling is important for players who participate in international lotteries. It confirms that the Dutch tax authorities are entitled to a share of the winnings even in the case of foreign prizes. The Supreme Court's ruling is final, meaning there are no further appeal options for the winner.