Rank Plc, Mecca Bingo Claims for ₤3.6 million in VAT

The Rank group which operates the UK’s second largest bingo chain, Mecca Bingo has released a statement saying that a the VAT and Duties tribunal has accepted its application for a ₤36.3 million tax refund after it found that the game was unfairly taxed.  According to the decision, European Union law is being violated by charging VAT on certain kinds of interval bingo, interval bingo is played between the main bingo sessions in UK clubs.  The UK government is more than likely going to appeal this ruling though.
This VAT taxation is considered to be discriminatory as other gaming concerns such as casinos are only taxed one and bingo is liable to two different types of tax, VAT and Gross Profit Tax. The Vat burden is said to be one of the major reasons for losses suffered by bingo companies in the UK, but bingo operators in the country have tried in vain to get this ruling lifted and the Government is adamant that they will not remove it.
The ruling of the VAT and Duties Tribunal will more than likely have no material benefit on the bingo group this year, the appeals deadline is July 10th.

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