VAT Eligibility - Prize Competitions

[BenTGM]

Hi,

I run a prize competition business whereby entrants must select a correct answer to a question and pay a small fee to enter (both skill and chance are required in the competitions). The business is close to reaching the VAT threshold of £85,000, however, I'm unsure whether we will have to start paying VAT due to the nature of the business. From my research online, it looks like we will be VAT exempt. I have sent HMRC an email however it can take up to 2 weeks at the moment to hear back due to Covid. I have also read through the VAT documents on the Gov website, but I can't quite wrap my head around it.

Any help is greatly appreciated!

 

[Scalloway]

From here

https://www.gov.uk/guidance/how-vat...ake-money-and-session-or-participation-charge

Game of chance’ is defined in Note 2 of Group 4 of Schedule 9 to the Value Added Tax Act 1994. Essentially, it is either a game of:

• pure chance, such as dice or roulette, where the result cannot be influenced by the player
• chance and skill combined, such as whist or rubber bridge, where the player either cannot eliminate chance or can only do so by exercising superlative skill

These supplies are exempt from VAT.

 

[Matt-Wallace]

Hi,

I run a prize competition business whereby entrants must select a correct answer to a question and pay a small fee to enter (both skill and chance are required in the competitions). The business is close to reaching the VAT threshold of £85,000, however, I'm unsure whether we will have to start paying VAT due to the nature of the business. From my research online, it looks like we will be VAT exempt. I have sent HMRC an email however it can take up to 2 weeks at the moment to hear back due to Covid. I have also read through the VAT documents on the Gov website, but I can't quite wrap my head around it.

Any help is greatly appreciated!

Hi Ben, what was your outcome regarding this matter?

 

[Scalloway]

Ben posted once a year ago and has not been seen since.

 

[Matt-Wallace]

Ben posted once a year ago and has not been seen since.

Yes, I saw that thanks - hoping the email notification he'll receive saying someone has replied to his thread will prompt him to return

 

[Scalloway]

You only get email notifications if you continue to visit the thread. He has never responded to my post in any way so he may be unaware of any further posts.

 

[Matt-Wallace]

Ah ok, oh well worth a try. Thanks