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17 November 2011

Bingo News: Rank succeeds with VAT claim in Europe

 

Rank Group has just won their claim that they overpaid over £130 million in Value Added Tax (VAT) to Her Majesty's Revenue and Customs (HMRC) in the European Union Court of Justice.

Rank, who run big name brands MeccaBingo.com, GrosvenorPoker.com and GrosvenorCaisnos.com, brought the claim against HMRC in 2008 stating that they had paid too much VAT on gaming machines and that they should receive reimbursement.

Before December 2005 some gaming machines were exempt form Vat under the UK tax rules, whilst other machines were subject to this duty. Rank raised their claim on their games of interval bingo at their Mecca Bingo Clubs.

The UK’s High Court and VAT and Duties Tribunal decided the Government’s practices contravened European Union principals on fiscal neutrality, which states that supplies that are identical or very similar should be treated the same for VAT purposes.

The HMRC had appealed the decision to the European Union Court of Justice but were unsuccessful and will have to pay £253.4 million including interest.

Today’s announcement confirms the findings of successive UK courts for Rank’s bingo claims totalling £253.4m including interest,” read a statement from Rank.

Rank is considering the implications of the European Union Court of Justice’s decision with its advisors on its amusement machines claim for £30.8 million including interest and will provide an update on this claim in due course.”


 



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