HMRC clarifies VAT treatment of certain gaming machines

HMRC has clarified its intention not to pay VAT refund claims relating to certain types of gaming machine. In an update to Revenue and Customs Brief 12/21: VAT treatment of gaming machines from 6 December 2005 to 31 January 2013, HMRC has clarified that it will not pay out claims for VAT refunds in relation to income from crane grab, coin pushers and penny fall game machines.

Games played on these machines were not held to be exempt by the tribunal in Rank Group plc and 2016 G1 Ltd [2021] UKFTT 241 (TC) and so HMRC considers that no payments are due in relation to their operation.

The original version of Brief 12/21 advised that HMRC would pay valid claims for overpaid VAT to businesses whose appeals were stood behind the Rank decision.