Beta This part of GOV.UK is being rebuilt – find out what this means

HMRC internal manual

VAT Betting and Gaming Guidance

HM Revenue & Customs
, see all updates

Services connected with betting and gaming but not covered by the Group 4 exemption: trading rooms (remote) - sometimes known as internet betting cafes

Trading rooms are where you set up equipment that lets people bet with a third party, such as a remote gambling betting operator (exchange, pool/fixed odds betting), through the internet or other remote means. As an example, a person may use a trading room that is equipped with computers, satellite information systems (SIS) and television screens showing horse racing and other sporting events.

A customer will normally pay a fee to a trading room for using their service. A trading room may also receive a commission from the remote gambling betting operator if it is promoting its services (this will be on a case-by-case basis, such as for signing up new customers). A specific product (for example, a betting exchange) may be promoted, however, a player should be allowed to use other betting operators.

When a customer does open an account to place bets, this will be with the remote gambling betting operator and not the trading room.

We regard both the fixed fee received for use of the terminal by punters and the commission fees received by the trading room from the promoted company or betting exchange as consideration for computer and introductory services, rather than for any supply of betting itself, and as such they are consideration for taxable supplies.