VBANDG11100 | Gaming and amusement machines: the taxable person - who should account for VAT on the machine takings?: supply of the machine to the player

It is important to identify the ‘person’ who makes the supply of the machine to the player, because it is that person who must account for VAT on the machine’s takings. Applying basic principles, the person who makes the machine available for use is normally the person who exercises day-to-day control over the operation of the machine and is entitled to the takings. It is the person who controls the premises on which the machine is sited allows access to the public and has the right to refuse to allow any person to play any particular machine.

In this respect, the information contained on the licences, permits and so on issued under the different parts of the Gambling Act, which machine operators must have to function within that law, is also very important in identifying the taxable person. The taxable persons for the various categories under the law are as follows:

Although the above explains what normally occurs, it is contractually possible for the supply of a machine to the player to be made by the owner of the machine, rather than the owner/occupier of the premises. Where it is claimed that such an arrangement exists it will be necessary to look at all the agreements covering the use of the machine. If, after studying all the agreements and discussing them with the customer, it is still not possible to resolve the question of who is making the supply, then the VAT Advisory Team should be consulted.

Guidance about the process for submitting requests to the VAT Advisory policy team can be round in VPOLADV