Betting, gaming and lotteries

By Tolley
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The following Value Added Tax guidance note by Tolley provides comprehensive and up to date tax information covering:

  • Betting, gaming and lotteries
  • Betting and gaming
  • VAT treatment of betting and gaming
  • Lotteries
  • Remote gambling
  • Bingo
  • Gaming / amusement machines
  • Supplies between machine owners and operators
  • Prizes
  • Recovering input tax

This guidance note provides an overview of the VAT treatment of betting, gaming and lotteries.

VATA 1994, Sch 9, Group 4; VAT Notice 701/29: betting, gaming and lotteries  ; De Voil V4.131 (subscription sensitive); 2006/112/EC , Article 135(1)(i)

Excise duty is payable on certain betting activities and more information can be found in Excise Notice 451a: General Betting Duty ; Excise Notice 147a: Pool Betting Duty  and Excise Notice 455a: Remote Gaming Duty .

Betting and gaming

VBANDG01600
Betting

The provision of any facilities for the placing of bets is exempt from VAT.

A bet has been defined as ‘the staking of money or other value on the event of a doubtful issue’ and the Gambling Act 2005 , s 9 defines the term ‘betting’ as:

  • 1)In this Act ‘betting’ means making or accepting a bet on-
    • a)the outcome of a race, competition or other event or process
    • b)the likelihood of anything occurring or not occurring, or
    • c)whether anything is or is not true
  • 2)A transaction that relates to the outcome of a race, competition or other event or process may be a bet within the meaning of subsection (1) despite the facts that-
    • a)the race, competition, event or process has already occurred or been completed, and
    • b)one party to the transaction knows the outcome
  • 3)A transaction that relates to the likelihood of anything occurring or not occurring may be a bet within the meaning of subsection (1) despite the facts that-
    • a)the thing has already occurred or failed to occur, and
    • b)one party to the transaction knows that the thing has already occurred or failed to occur

More on Exempt supplies: