HM Revenue and Customs Brief 59/07
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Issued 23 August 2007
VAT: Gambling participation fees, iincluding bingo and remote gaming
HMRC has revised the scope of the exemption for gambling participation fees
in the light of, and to coincide with the introduction of, the Gambling Act
2005, which comes into force on 1 September 2007. From that date, the changes to
VAT legislation also apply.
Until 1 September 2007, charges made under the Gaming Act 1968 or the
Betting, Gaming, Lotteries and Amusements (Northern Ireland) Order 1985, to take
part in a game of chance, are taxable at the standard rate . In effect, this
taxes participation fees for bingo and other gaming, with some exceptions for
small -scale operations.
The VAT (Betting, Gaming and Lotteries) Order 2007 (SI 2007/2163) comes into
effect on 1 September 2007. Broadly speaking, the Order maintains the existing
exemptions. However, VAT will become chargeable for the first time on
participation fees which are calculated on the basis of a percentage of the
stakes risked in a game, and those charged for games against the house.
Participation fees will continue to be exempt from VAT in respect of:
- remote gaming for the purpose of remote gaming duty;
- prize gaming under a permit or at any qualifying centre or fair;
- non-commercial gaming;
- equal chance gaming at a qualifying club or institute;
- gaming for small prizes at a bingo hall.
If you have any questions about this change, please phone the National Advice
Service on 0845 010 9000.
Notice 701/26 Betting and Gaming and Notice 701/27 Bingo will be updated
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Article Published/Sorted/Amended on Scopulus 2007-08-28 23:38:45 in Tax Articles