VAT treatment of gaming, gaming machines and amusement machines

Updated on April 13, 2022

Tax and Duty Manual Gaming, gaming machines and amusement machines

This document should be read in conjunction with section 46(a) to the VAT
Consolidation Act, 2010.
Document last reviewed December 2020
Table of Contents
Introduction ……………………………………………………………………………………………………2
1 Gaming, gaming machines and amusement machines……………………………………2
1.1 Gaming services………………………………………………………………………………………2
1.2 Gaming machines and amusement machines……………………………………………..2
2 VAT rate for gaming, gaming machines and amusement machines………………….3
3 Taxable amount ………………………………………………………………………………………..3
4 Share of takings from gaming machines and amusement machines…………………4
5 Hiring of gaming machines and amusement machines …………………………………..4

The content in this paper is for informational purposes only and should not be construed as legal or other professional advice. Even if the advise appears to cover all bases, there is no guarantee that it will.

Tax and Duty Manual Gaming, gaming machines and amusement machines

Introduction

Gaming, gaming machines, and amusement machines are subject to VAT under this advice. The VAT Tax and Duty handbook provides information on how e-gaming services1 should be treated when calculating VAT.
In the VAT Tax & Duty manual, the VAT handling of betting, remote betting services, and lotteries is explained in detail.

1 Gaming, gaming machines and amusement machines
1.1 Gaming services

“gaming” refers to a game of skill or chance, or a combination of the two, while “gambling” refers to the stakes that players place. 2 This includes any payment that is required to participate in the game, as well as any additional payment that must be made to engage in the game, but does not include payments for the facilities required for the game to take place.
Table games like poker and roulette are examples of casino gaming.
1.2 This category includes all types of gaming and amusement equipment.
A gaming or amusement machine is a piece of equipment specifically designed for that purpose.
Coins or tokens must be entered into a game or amusement machine in order to play. Regardless of whether a player can physically manage the machine, the activity of a gaming machine dictates the outcome of a game or entertainment session. 3
Using a gaming machine, a player can return to the game or win a cash prize of any amount.
4. A gambling machine like a poker machine is an illustration of this.
Robotic Fruit Machines One-armed robbers (ATMs).
Playing again or winning a non-monetary reward, which in most cases would not surpass €7 in value, is conceivable with an entertainment machine.
5.

1 eGaming is a term used to describe online or electronic gaming services.
Gaming and Lotteries Act 1956, Section 2.
This provision is contained in Section 43(2) of the Finance Act 1975, as amended.
Finance Act of 1975, section 43(2)(a)
(5) The Finance Act of 1992, subsection (2),

Tax and Duty Manual Gaming, gaming machines and amusement machines

Toy crane machines and pinball machines are two common types of amusement equipment.
Operators of gaming and entertainment machines must get a particular excise licence.
To learn more about excise requirements for gaming machines and amusement machines, you can check out Revenue’s website and the Gaming and Amusement Licensing Manual.

2 VAT rate for gaming, gaming machines and amusement
machines

Gaming services and the usage of gaming machines and amusement machines are subject to VAT at the regular rate.

3 Taxable amount

For the purposes of VAT, the taxable amount for the supply of services is all of the consideration that the supplier has received or will receive from the customer or a third party in exchange for the supply in question. Including discounts or rebates given to the client at the time of the supply is not included. 6
Suppliers are taxed on any money they earn from customers who play their games or use their devices. Only a portion of the supplier’s stakes (i.e., the income or net receipts from these activities) are included in this sum. VAT is included in the income.
To figure out how much tax you owe, subtract the wins from the stakes or, if the rewards are products, their actual cost (excluding VAT).

Example

There are a total of ten participants, each of whom has staked €10 in the game. One player receives €50 in cash at the end of the game. According to the following formula, the taxable amount (VAT exempt) and the VAT that must be paid for the game are:
Amount subject to taxation is calculated as follows: Bets made minus winnings
Amount subject to tax = 10 x €10 – 50
Amount subject to taxation: €50 (VAT inclusive)
V.A.T. is calculated as €50 x 23%/123 percent
Value Added Tax (VAT) = €9.35
Amount subject to tax (excluding VAT): €40.65

6 Case C-38/93 H.J. Glawe Spiel- und Unterhaltungsgerate Aufstellungsgesellschaft mbH&Co. KG and
Finanzamt Hamburg-Barmbek-Uhlenhorst.

Tax and Duty Manual Gaming, gaming machines and amusement machines

4 Share of takings from gaming machines and amusement
machines

As long as a machine’s owner leaves the machine on a premises, the owner is responsible for paying VAT on the machine’s total income.
Even if the computer owner and the user have an agreement, this rule still applies.

Profits should be shared, for example 50/50. The amount of money due to the

a distinct service provided by the premises is paid for by the property owner.

owner to the machine’s owner.

5 Hiring of gaming machines and amusement machines

Income from renting or leasing out gaming machines or amusement machines is taxed at the usual rate of VAT.