Bookmakers and hospitality businesses may be entitled to value added tax refunds as a result from overruled calculations by revenues and customs with respect to fixed odds betting terminal charges.
The dispute has to do with VAT charges on gaming machines from 2005 to 2013. The situation had been challenged by Betfred and Rank Group Plc who claimed that HMRC had broken its ‘fiscal neutrality rules’ by imposing a VAT-specific charge on land-based FOBTs, but not on traditional or online casino games, according to SBCNews.
Last April, an Upper Tribunal review supported the bookmakers position.
HMRC did not apply a “clear distinction on the supply of games defined as FOBTs, which would have allowed businesses to claim value added tax exemptions.”
Publishing its 2020 corporate accounts, Betfred secured a credit charge of £99 million (US$136 million) from its VAT appeal, enough to offset it’s declines In 2020.
Other bookmakers expect to follow suit.
