Rank wins fight on 36 million pound bingo tax

The operator of Mecca Bingo clubs and Grosvenor casinos, Rank Group will be receiving a 36 million VAT on winning a legal fight with tax authorities. With this decision, it is probable that other bingo operators will lodge claims which will make the government liable to more than 100 million pounds. 

 

According to Times Online, Gala Bingo, the country’s largest bingo operator with 160 bingo clubs has already lodged claims with the HM Revenue and Customs. Rank was all against VAT and Duties Tribunal charging VAT on interval bingo games, stating that it was against European law. 

 

This ruling is applicable to the bingo games that are played in the gap of time between main bingo games called mechanized cash bingo or cashline.

 

Rank had argued on the basis that charging VAT on some forms of interval bingo and not others by the Revenue was all against fiscal neutrality of the European principle. The fiscal neutrality states that tax authorities have to follow a consistent VAT approach for similar natured services. 

 

The HMRC have not given any immediate comment on the matter, and have till July 10 to appeal against the ruling. Rank states that if Revenue appeals, there may not be much of a benefit to bingo this year.

 

However the ruling is good news to the bingo industry that has been trying to cope with the smoking ban and the removal of high-jackpot bingo machines. 

 

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