Gaming Machines: Replacement of VAT with Machine Games Duty

The recent budget announced changes in respect of the above.

From 1 February 2013 a new tax on gaming machines receipts will be introduced, to be known as Machine Games Duty (MGD). At the same time AMLD (Amusement machine Licence Duty) will be abolished and income from gaming machines will become VAT exempt.

Generally whoever pays the current amusement machine licence duty will be responsible for paying the new MGD.

This will mean that quarterly MGD returns will be required from all operators of qualifying machines. Two rates of duty will apply: 5% where the maximum stake is 10p and the maximum cash prize £8, and 20% in all other cases.

This change in status of the machine income from taxable to exempt will have an effect on registration status and /or partial exemption position of businesses.

If you would like any further information or help with this then please do get in touch with us.