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The High Court judgment in Rank confirmed there had been a breach of fiscal neutrality in the tax treatment of the supply of mechanised cash bingo (MCB) and gaming machines. In respect of gaming machines, the decision related to an appeal against an interim ruling of the VAT tribunal.
The First-tier Tribunal issued its final decision in December 2009, finding that fixed-odds betting terminals were similar to, and in competition with, taxable gaming machines. HMRC are appealing against this decision.
In the meantime, given that fixed-odds betting terminals came into commercial use in the UK in November 1998, the Revenue is considering existing claims submitted within required time limits for repayment of VAT paid on gaming machine takings for the period from 1 November 1998 to 5 December 2005.
It should be noted that since 5 December 2005, comparator machines, fixed odds betting terminals and gaming machines have all been subject to VAT.
Claims that have previously been rejected (for whatever reason) and which are not under appeal will not be considered.
No new claims for the repayment of VAT paid for the period between 1 November 1998 and 5 December 2005 can be made. HMRC hope to process all existing claims by 31 March 2011.
Where a business has already made a claim for output tax wrongly accounted for in respect of gaming machines, this will be considered although further evidence may be requested.
See here for more details.
