VBANDG12700 - "Relevant machine games": accounting for VAT on machine takings: retail schemes

If the "relevant machine game" operator uses a retail scheme the following rules apply:

• If using the Point of Sale Scheme the retailer can add the taxable machine take to the standard-rated takings for the day on which the cash and/or tokens are removed from the machine and include the amount in the normal retail scheme calculations (see VAT Notice 727/3 Point of Sale VAT Retail Scheme).
• If using an Apportionment Scheme the retailer must exclude the taxable machine takings from his daily gross takings and keep a separate record, working out the VAT due as explained in VBANDG12200.
• If using a Direct Calculation Scheme and marking up standard-rated purchases for resale the retailer must exclude the machine takings from his daily gross takings and keep a separate record, working out the VAT due as explained in VBANDG12200. If the retailer is marking up zero-rated purchases, he can include the machine takings in his daily gross takings and in his normal retail scheme calculation (see Direct Calculation VAT Retail Scheme VAT Notice 727/5).