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TaxRobin
TaxRobin, Tax Consultant
Category: Tax
Satisfied Customers: 17610
Experience:  International tax
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The company I represent is based in the Cayman Islands. The

Customer Question

The company I represent is based in the Cayman Islands. The company supplies live horse racing (data and pictures) from North America into UK betting shops. The company is paid a percentage based commission based on wagers made on the racing supplied. The company invoice the UK bookmaker on a monthly basis, and do not charge VAT.

Question: Although the UK Bookmaker can't register for VAT, is the UK Bookmaker liable to reverse charge procedure?
Submitted: 3 years ago.
Category: Tax
TaxRobin
Expert:  TaxRobin replied 3 years ago.
Hello,
The provision of facilities for betting, which includes pool betting, or for playing games of chance, is normally exempt from VAT.
Because the supplier belongs outside the UK, the customer belongs and is in the UK, and the place of supply is the UK the reverse charge cannot be applied because the supply would be exempt.
I base this understanding on :
The rules when the reverse charge applies to services where

the place of supply is the UK
the supplier belongs outside the UK
the customer is a relevant business person (see VATPOSS01350) who belongs in the UK
the supply is not exempt (this includes exempt supplies subject to an option to tax), and
for supplies not within the general rule (see VATPOSS06300), the customer is VAT registered in the UK.
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