Arcades - ticket redemption machines

[dafcjim]

Hi there

I wanted to ask if any knows what the situation is with Arcade's and the vat required.

Is the threshold on these based on income?
what VAT is due - this is for a ticket redemption arcade

thanks
Jay

 

[Scalloway]

From here:

Betting, gaming and lotteries (VAT Notice 701/29)

Find out how to apply VAT to betting, gaming, bingo, lotteries and machine games.

www.gov.uk

You must always account for VAT on:

• admission charges to premises including those where betting and gaming takes place
• club subscriptions including those to gaming, bingo and bridge clubs, and so on
• ‘relevant machine game’ takings (see paragraph 9.2)

9.2 A relevant machine game​

A relevant machine game is a game of skill, chance or both that is played on a machine for a prize and which is not subject to any duty. Examples of such games include:

• non-cash prize games, like, a teddy bear in a crane grab machine
• redemption ticket games which pay out tickets which the player can redeem for a non-cash prize (these machines are often located at family entertainment centres)

 

[mahad]

Or in simple language, easier to understand:

Ticket redemption arcades in the UK must charge VAT on the value of redemption tickets players exchange for prizes. This applies regardless of the arcade's total income. The VAT threshold for registration doesn't affect this requirement. While VAT applies to these games, it likely doesn't apply to admission fees or club subscriptions (if offered)