This site uses cookies. By continuing to browse the site you are agreeing to our use of cookies. To find out more about cookies on this website and how to delete cookies, see our Cookie Policy.
Analytics

Tools which collect anonymous data to enable us to see how visitors use our site and how it performs. We use this to improve our products, services and user experience.

Essential

Tools that enable essential services and functionality, including identity verification, service continuity and site security.

Where Taxpayers and Advisers Meet

Bookmakers & VAT

emmamackenzie@hotmai
Posts:4
Joined:Wed Aug 06, 2008 3:09 pm

Postby emmamackenzie@hotmai » Mon Feb 04, 2008 4:28 am

Has anyone heard about the "recent VAT decision on SIS service cheers bookies"
It states that bookmakers can now benefit from a recent tribunal decision that allows them to recover VAT on sis services without them having to add content.
Should we be registering bookmakers for VAT now?
I would be grateful for anyones thoughts.
Thanks
Emma

Paul Taylor
Posts:83
Joined:Wed Aug 06, 2008 3:43 pm

Postby Paul Taylor » Wed Feb 13, 2008 2:32 am

You would need to weigh up the figures.

Having completed VAT returns for a bookmaker, I would doubt that the amount of VAT to be recovered on such services would outweigh the VAT to be declared on taxable income (slots and fixed odds betting machines).

It will be worth reviewing the turnover from the fruit machines and FOB terminals to ensure that these don't exceed the turnover limit and that your booked is required to register anyway.

Regards,

Paul

taxattack
Posts:309
Joined:Wed Aug 06, 2008 3:44 pm

Postby taxattack » Wed Feb 13, 2008 8:29 am

Emma
Here is HMRC's comment: http://www.hmrc.gov.uk/briefs/vat/brief0108.htm
I don't know whether it would be worth your clients registering - but Cheshire Racing obviously thought so!
Regards
chris@taxattack.co.uk

Paul Taylor
Posts:83
Joined:Wed Aug 06, 2008 3:43 pm

Postby Paul Taylor » Wed Feb 13, 2008 9:06 am

According to the Tribunal ruling, Cheshire Racings' receipts from Fixed Odds Betting Terminals alone exceeded £6.3 million in the year to April 2007. Cheshire Racing, therefore, had no choice but to register for VAT as it's taxable turnover far exceeded the VAT registration threshold.

It was simply trying to make the best of a bad job by recovering as much input VAT as possible.

I stand by my original statement. I would doubt very much whether the input VAT it could recover on taxable costs (power, light, rent (possibly) and the SIS) would exceed the VAT it would be required to account for on the taxable income (Fruit Machine and Fixed Odds Betting Terminals).

Therefore, unless a it is required to register because its taxable turnover exceeds the VAT registration threshold, it is unlikely to be advantageous for a bookmaker to voluntarily register.

Regards

Paul Taylor
Senior VAT Consultant
http://www.dains.com/


Return to “VAT & Excise Duties”