Arising out of the recent judgment of the ECJ case Leo-Libera GmbH v Finanzamt Buchholz in der Nordheide C-58/09 (“Leo Libera”) Revenue has clarified the correct VAT treatment of income from gambling.

Casino businesses which to date have been incorrectly treating the income from gambling as exempt from VAT, must now revise their VAT returns by computing the VAT liability at the standard rate on their income and forward remittances for additional liabilities to the Collector General.

In Ireland, the only forms of gambling that are exempt are lotteries, betting at bookmakers or via the totalisator at horse and dog race tracks, as specifically provided for in Schedule 1 paragraphs 10(1) and (2) of the VAT Act 1972-2010. All other forms of gambling carried on as a business are, and have always been, subject to VAT at the standard rate.

Further details on the ECJ ruling and a link to the full text of the Leo Libera case are set out in Revenue's eBrief No. 76/2010 which is available here