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HMRC plan to recover the amounts paid out in VAT claims made under the terms of Revenue and Customs Brief 11/10, following the Court of Appeal decison in favour of the taxman in CRC v The Rank Group plc in relation to gaming machines including multiplayer terminals.
HMRC plan to recover the amounts paid out in VAT claims made under the terms of Revenue and Customs Brief 11/10, following the Court of Appeal decison in favour of the taxman in CRC v The Rank Group plc in relation to gaming machines including multiplayer terminals.
The court ruled the devices fell within the legal definition of a gaming machine, meaning their takings were taxable at the standard rate of VAT in the same way as similar technology, and there was no breach of fiscal neutrality. Rank’s machines had been found by other courts to have not fallen within the definition.
The tax department has published Revenue and Customs Brief 1/14 to explain the action required by affected businesses, which will receive letters setting out the amounts of VAT they received and offering guidance on how to repay the money.
