TaxCorporate TaxOne-arm bandits hit jackpot over VAT

One-arm bandits hit jackpot over VAT

The Government faces embarrassing u-turn over VAT and gaming machines

Bingo giant Rank Group has achieved a landmark VAT victory which could see
the Treasury paying back hundreds of millions of pounds in claims.

The Mecca Bingo club owner has won £36.3m in repayments following a claim it
submitted to the VAT and Duties Tribunal in 2006.

The VAT and Duties Tribunal ruled that charging the sector 17.5% VAT
contravened the EU laws on fiscal neutrality – a decision which puts bingo
gaming machines and one arm bandits on the same footing as casinos and betting
shops.

‘This is a huge setback. If the decision stands hundreds of millions of
pounds that the government thought it had collected will have to be paid back,’
said Paddy Behan, head of indirect tax services at Mercury Tax Group.

Rank said it was ‘pleased’ with the decision but expected ‘no material
benefit this year’ if the government chose to appeal against the decision which
it must do by 10th July.

A copy of the VAT and
Duties Tribunal’s judgement
is expected to be made available shortly.

Further reading

The
Rank Group statement on the ruling

Related Articles

Watch out when winding up

Corporate Tax Watch out when winding up

1m Emma Rawson, ATT Technical Officer
How might Brexit affect UK tax policy?

Brexit & Economy How might Brexit affect UK tax policy?

1m Santhie Goundar
Corporation tax losses – your newly flexible friends

Corporate Tax Corporation tax losses – your newly flexible friends

3m Emma Rawson, ATT Technical Officer
HMRC large business tax enquiry duration rises to 3 years

Corporate Tax HMRC large business tax enquiry duration rises to 3 years

4m Emma Smith, Managing Editor
SMEs paying higher rate of corporation tax than big businesses

Corporate Tax SMEs paying higher rate of corporation tax than big businesses

4m Alia Shoaib, Reporter
Big names, little tax: Airbnb, Facebook, Kellogg’s, eBay

Corporate Tax Big names, little tax: Airbnb, Facebook, Kellogg’s, eBay

7m Alia Shoaib, Reporter
New trading allowance: simplicity, but not as we know it

Administration New trading allowance: simplicity, but not as we know it

7m Emma Rawson, ATT Technical Officer
EU divided over radical tax reforms targeting tech giants

Corporate Tax EU divided over radical tax reforms targeting tech giants

8m Alia Shoaib, Reporter