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In light of the recent decision in Rank in favour of the taxpayer, HMRC have published Revenue & Customs Brief 40/09.
The ruling confirmed that there had been a breach of fiscal neutrality in the tax treatment of the supply of mechanised cash bingo (MCB).
This means that participation fees for playing MCB should have been exempt from VAT, and businesses can submit claims for repayment of any output tax wrongly accounted for.
In relation to gaming machines, the judgment relates to an appeal against an interim ruling of the VAT tribunal.
As the tribunal has not yet ruled in respect of Rank’s full appeal, the Revenue will not at this time consider any claims relating to the issue.
Claimants should note that, as bingo duty is charged on the VAT-exclusive value of participation fees, the Rank decision will have an effect on bingo duty declarations although HMRC is still considering the precise implications.
However, the department will now enforce those bingo duty assessments already made, and further assessments may be made as appropriate.
