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HMRC internal manual

VAT Betting and Gaming Guidance

European VAT law

The authority in European VAT law for the exemption for betting and gaming under VAT Act 1994, Schedule 9, Group 4 items 1 and 2 is Article 135(1)(i) of the EU Principal VAT Directive, which exempts:

Betting, lotteries and other forms of gambling, subject to conditions and limitations laid down by each Member State

The wording of Article 135(1)(i) allows the UK to introduce its own conditions and limitations, and therefore to exclude from exemption those payments referred to in VBANDG01300.