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VAT: electronic lottery machines

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HMRC is not appealing against the first-tier tribunal decision in Oasis Technologies (UK) Limited v  HMRC TC 581, reported last July.

‘The tribunal agreed with HMRC that the Oasis Electronic Lottery Ticket Vending Machine (ELTVM) is a gaming machine. However, the Tribunal found that the Oasis ELTVM also grants the right to participate in a lottery and that the takings from this machine are exempt from VAT,’ HMRC said in Revenue & Customs Brief 01/11.

HMRC now accepts that a machine whose operation is the same as that of the Oasis ELTVM is to be treated as granting the right to participate in a lottery, and that the takings are VAT exempt. Brief 01/11 lists the characteristics to be met by a machine before takings are treated as exempt, and invites claims for overdeclared output tax subject to the capping rules.

Issue: 1062
Categories: News , Indirect taxes , VAT