This Brief deals with HMRC's position on the VAT treatment of the supply of Mechanised Cash Bingo (MCB) and gaming machine takings, following the VAT Tribunal decision in the Rank case.

In a decision dated 27 May 2008 the VAT Tribunal decided that the VAT treatment of MCB provided by Rank was in breach of fiscal neutrality and consequently these supplies should be exempt from VAT. HMRC appealed against the decision and the High Court hearings are expected to be held in March or April 2009.

HMRC's view of the law remains unchanged: VAT is and always has been properly due on supplies of MCB and on the takings of gaming machines. Therefore, businesses should continue to account for VAT on such supplies.

Revenue & Customs Brief 63/08 is available at http://www.hmrc.gov.uk/briefs/vat/brief6308.htm.