GVC expects £200m windfall from machines VAT ruling

first_imgAddThis Sharing ButtonsShare to LinkedInLinkedInShare to FacebookFacebookShare to TwitterTwitter The conclusion of the legal dispute over the payment of value-added tax (VAT) on revenue generated from gaming machines has led to GVC Holding revealing that it expects to see up to £200m repaid. Topics: Casino & games Finance Slots Subscribe to the iGaming newsletter Email Address GVC expects £200m windfall from machines VAT ruling 21st May 2020 | By contenteditor Casino & games Regions: UK & Ireland The conclusion of the legal dispute over the payment of value-added tax (VAT) on revenue generated from gaming machines has led to GVC Holding revealing that it expects to see up to £200m repaid.Her Majesty’s Revenue and Customs (HMRC) lost an appeal in the Upper Tribunal Tax Chamber in April, which supported the First-tier Tribunal’s (FTT) stance that VAT was incorrectly applied to B2 machine revenue.HMRC ultimately decided against a further appeal, clearing the way for operators to claim for a VAT rebate. This has already seen William Hill’s board claim that it could see up to £150m repaid.GVC has now announced that it expects to receive approximately £200m through its own claim. This covers the period from 1 October 2002 to 31 January 2013, on VAT paid on B2 machines in its Ladbrokes betting shops.Other betting shop operators, including Rank Group, which was a plaintiff in the original case, are yet to comment on the case. When the FTT first ruled in the industry’s favour in 2018, there were estimates that up to £1bn in rebates would be paid out.The challenge was originally filed by Betfred alongside Rank, with the pair arguing that VAT being charged on games provided via a B2 machine, while the same game delivered through different platforms remained exempt, breached the principle of fiscal neutrality.The Court of Justice of the European Union had already supported this argument in a case brought by Rank in 2011. This ruling ultimately contributed to VAT for gaming machines being replaced by Machine Games Duty in 2013.Betfred will now likely pursue a VAT rebate for the period from 2005 and 2013, while Rank’s rebate will cover 2002 to 2005. Tags: OTB and Betting Shops Slot Machineslast_img read more

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