RCB/5/20 VAT treatment on fixed odds betting terminals and gaming machines
Revenue & Customs Brief, Issue 5. 26 May 2020
Purpose of this brief
This brief explains HMRC's position after the joint decision of the Upper Tribunal on 15 April 2020 about the cases:
• The Rank Group Ltd UT/2018/0149
• Done Brothers (Cash Betting) Ltd (and others) UT/2018/0150
The brief clarifies how businesses with appeals related to this decision can reclaim overpaid VAT.
Who needs to read this
Businesses with appeals claiming that HMRC treating their gaming machine income as standard rated is a breach of fiscal neutrality, where the appeals are currently stood behind either:
• The Rank Group Ltd and relate only to the period from 1 October 2002 to 5 December 2005
• Done Brothers (Cash Betting) Ltd (and others) and relate to the period from 6 December 2005 to 31 January 2013
This brief does not apply to appeals that were originally stood behind Colaingrove Ltd and to the operation of non-Fixed Odds Betting Terminals (FOBT) from 6 December 2005 to 31 January 2013.
Colaingrove Ltd withdrew it's appeal and a replacement lead was set up. The Rank Group Ltd and 2016 G1 Ltd are now the joint lead appellants for this case. The case is scheduled to take place at the First-tier Tribunal in November 2020.
The Tribunal has not decided the VAT treatment for the operation of non-FOBTs from 6 December 2005 to 31 January 2013 yet.
This is a historical issue. The law changed with effect from 1 February 2013. It