Bingo win for Rank (Mecca Bingo) in £36m VAT case

The VAT & Duties Tribunal today ruled that the UK’s VAT treatment of mechanised cash (or interval) bingo was inconsistent with EU rules. The ruling means that The Rank Group plc, which brought the case, stands to recoup £36 million in overpaid VAT.

Rank, the owner of Mecca bingo clubs, argued that the current position, under which some types of mechanised cash bingo are taxable while others are exempt from VAT, is contrary to the principle of fiscal neutrality. This requires the same or similar services to be treated in the same way for the purposes of VAT. The Tribunal accepted this argument and upheld, in principle, Rank’s claim for overpaid VAT of £36 million.

Tony McClenaghan, head of indirect tax at Deloitte, which advised Rank, commented: “This decision upholds the principles set out by the European Court of Justice in the Linnewebber case. The same principles will apply to any taxpayer which has paid VAT on this type of bingo. It’s a case of eyes down for other taxpayers to consider if they have claims to submit for overpaid VAT and interest to HM Revenue & Customs.”

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