Graham Elliott, VAT expert, provides essential analysis of the latest rulings in VAT cases from the Supreme Court ruling in Rank Group plc (UKSC 48), VAT recovery for cultural services at Chester Zoo (TC04479) and a curious craft fair rental decision at the FTT in Kati Zombory-Moldovan TC04428
Case report: game in the machine as Rank loses
The Supreme Court decision in Rank Group plc (UKSC 48) admittedly has no application to current VAT legislation but gives a fascinating insight into legal interpretation.
It relates to whether gaming machines fell within the then definition which brought them into the taxable category. If they did not, the supply was exempt as a game of chance. The only criterion at issue was the question of whether, in cases where the result of each ‘play’ was generated by a unit that was physically separate from the player terminal, it was caught by the description: ‘the element of chance in the game is provided by means of the machine’.
For that restriction not to apply in this case, one would have to interpret those words as not applying where ‘the machine’ was physically two machines connected by a wire – or, two boxes but not one machine. If that split structure meant that the above criterion was not in place, the supply was exempt.
A m
