TaxCorporate TaxHMRC admits that bingo is VAT exempt

HMRC admits that bingo is VAT exempt

Yesterday's excise duty drop for bingo is just the tip of the iceberg, after today's announcement by HMRC over VAT exemption for the industry

Ignore yesterday’s PBR announcement on a drop in excise duty on bingo to 20%
– the taxman has announced today that it will accept that ALL bingo games will
be VAT exempt.

The huge announcement follows HM Revenue & Customs’ consideration of its
failed High Court case against Rank Group, where the group’s mechanised bingo
machines were classed as VAT exempt by the courts.

The taxman accepts that ruling includes all bingo games.

Deloitte senior indirect tax partner Tony McClenaghan said it was a “very
positive announcement” for the industry, and organisations affected should
consider submitting claims for overpaid VAT.

“We believe that this is the right approach for an industry that has suffered
in the last few years with an increasing burden in taxation,” said Clenaghan.

But with HMRC’s appeal set for the courts next April, the taxman has warned
VAT claimants that its successful appeal would require their repayment with
interest.

Further reading:

Rank
Group wins £62m VAT appeal

Read
HMRC’s bingo statement

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