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HMRC internal manual

VAT Time of supply

HM Revenue & Customs
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Tax points for specific types of supply: Coin operated machines

The tax point for supplies made via coin operated machines such as vending machines, amusement machines and gaming machines, is normally the date the machine is used. More precisely, as payment invariably precedes any supply by or from the machine, this normally represents the actual tax point. But it is recognised that this can cause practical difficulties for operators where machines are only emptied periodically. An extra-statutory class concession has therefore been allowed as follows.

The tax point for supplies made from coin-operated machines is the date the machine is used. As an accounting convenience, however, operators may delay accounting for VAT until the takings are removed from a machine. For all other purposes the normal tax point rules apply. Therefore in the event of a theft of takings from a machine VAT must still be accounted for in full on any supplies that have been made from the machine.

This also means that if there is a change in rate, operators must revert to the normal tax point rules to calculate the VAT rate to be applied to takings covering supplies made both before and after the rate changed.

You can find out more about VAT and coin operated gaming and amusement machines in manual covering the liability of betting and gaming.