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HMRC internal manual

VAT Betting and Gaming Guidance

From
HM Revenue & Customs
Updated
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"Relevant machine games": accounting for VAT on machine takings: retail schemes

If the “relevant machine game” operator uses a retail scheme the following rules apply:

  • If using the Point of Sale Scheme the retailer can add the taxable machine take to the standard-rated takings for the day on which the cash and/or tokens are removed from the machine and include the amount in the normal retail scheme calculations (see VAT Notice 727/3).
  • If using an Apportionment Scheme the retailer must exclude the taxable machine takings from his daily gross takings and keep a separate record, working out the VAT due as explained in VBANDG12200.
  • If using a Direct Calculation Scheme and marking up standard-rated purchases for resale the retailer must exclude the machine takings from his daily gross takings and keep a separate record, working out the VAT due as explained in VBANDG12200. If the retailer is marking up zero-rated purchases, he can include the machine takings in his daily gross takings and in his normal retail scheme calculation (see VAT Notice 727/5).