VBANDG10000 - Machine Games: liability of other supplies associated with machine games
Takings for machine games on passenger ships
Where a customer provides ‘relevant machine games’ on a passenger ship which is leaving the UK for a foreign destination, the supply of services is regarded as being made outside the UK and therefore outside the scope of UK VAT. Any use of the facilities in UK territorial waters is effectively ignored provided the vessel has been cleared to go to a foreign country.
Where the machine games are played on vessels which are not foreign-going, - that is, for coastwise journeys within the UK - the supply is made within the UK.