Rank to demand £26m VAT repayment

15th Dec 2009 07:42

Bingo and gaming group Rank is to demand repayment of nearly £26m of VAT after a tribunal again ruled it had been overcharged tax on gaming machines between 2003 and 2005.'As a consequence of this ruling, Rank will request payment from Her Majesty's Revenue & Customs of £25.9m of overpaid VAT. The group expects to receive payment during the first quarter of 2010,' today's statement said.The tribunal decision confirms an interim ruling in August last year that the UK's VAT treatment of amusement machines contravened the European Union's principle of fiscal neutrality. This latest ruling is valid for the full three years of Rank's claim period, something that had not been clear previously.HMRC is appealing both the decision on gaming machines and also another tribunal judgment on £59.1m of VAT paid on interval bingo that went in Rank's favour. The Court of Appeal is scheduled to hear these appeals in April 2010.Yesterday, Rank submitted a new claim for £16m of overpaid VAT on its main stage bingo business from 2004.