Balearic Court Rejects Gaming Tax Refund for COVID Closures

The Balearic Superior Court of Justice has rejected a significant gaming tax refund claim from operator Oper Ibiza, S.L., establishing important precedent for how COVID-related closures affect fiscal obligations in Spain's gaming sector.

Court Upholds Tax Despite Operational Restrictions

The Sala de lo Contencioso del Tribunal Superior de Justicia de Baleares dismissed Oper Ibiza's appeal seeking the return of €130,798.98 or 130,798.98 euros in gaming taxes for the first quarter of 2021. The company argued that regional COVID-19 health restrictions rendered its gaming machines inactive for 79 of the 89 days in that quarter, violating the principle of economic capacity by taxing non-operational activity.

The operator contended that the taxable event should encompass actual business operations rather than mere authorization possession. However, the Balearic court aligned strictly with Supreme Court doctrine on gaming taxation principles.

"el hecho imponible de la tasa fiscal no está ligado a la efectiva explotación de la máquina y la consiguiente obtención de un ingreso derivado de la misma, sino al otorgamiento de la autorización que habilita la explotación"

— AzarPlus

The ruling clarifies that for tax purposes, holding valid authorization on January 1st determines liability, regardless of external operational constraints affecting machine functionality.

Regulatory Gap Proves Decisive

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A critical factor in the court's decision was the absence of specific regional legislation covering the disputed period. While the Balearic community had approved exceptional 75% bonifications for the second quarter of 2020 and second quarter of 2021, no comparable measures existed for the first three months of 2021.

The judgment emphasized that without autonomous law establishing bonifications or reductions, courts cannot independently apply tax relief, respecting the principle of legal reserve in taxation matters. This regulatory gap left operators without recourse despite demonstrable operational disruptions. The Balearic ruling contrasts with other jurisdictions where Spain's DGOJ maintains dual regulatory oversight over online operations while autonomous communities handle land-based gaming tax matters.

Implications for Sector Compliance

This decision reinforces the rigid interpretation of gaming tax obligations in Spain, where authorization validity supersedes operational capacity. The ruling signals that operators cannot expect judicial intervention to address regulatory gaps during crisis periods, highlighting the importance of proactive legislative frameworks for exceptional circumstances.

For gaming operators across Spanish autonomous communities, this precedent underscores the need for comprehensive emergency provisions in regional gaming tax legislation to address future operational disruptions.

According to AzarPlus.