VBANDG18800 - Lotteries: what is a lottery?: retailers
Can a retailer be a principal?
Yes. Sometimes a retailer may be a principal when buying a supply of the lottery tickets at a certain price and then sell them on at higher price. The fact that the retailer receives the tickets at a discounted price means that there is a supply to and by the retailer.
What if the retailer acts as an agent?
When the retailer is an agent and earns a commission from the ticket sales, the selling service will be exempt - see VBANDG20000. This is because National Lottery retailers are treated in the same way as other lottery ticket sellers.