Bingo!

Single or multiple supply

The taxpayer charged fees to members to enable them to participate in a game of bingo and added an extra 10p to the charge if the member also wanted to buy a proper bingo marker pen. The pens were available at the same price in the club buffet.

The taxpayer said the supply formed part of a single exempt supply of the provision of facilities to play bingo.

HMRC disagreed saying there was a single charge to play bingo that was exempt from VAT. The pen was a way of enhancing the enjoyment of the main supply and was not an aim in its own right.

The First-tier Tribunal agreed with HMRC. The judge said the supply consisted of two elements: the service of bingo and the pen. There was no single package of bingo including a pen; customers had to buy the pens separately....