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CASE SUMMARIES : VAT

Monday 19 December 1994 00:02 GMT
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The following notes of judgments were prepared by the reporters of the All England Law Reports.

VAT

Freehan v Commissioners of Customs & Excise; QBD (Hidden J); 4 Nov 1994.

European Union member states were permitted to impose VAT on the operation of gaming machines, which might be excepted from the exemption from VAT for gambling generally provided by the Sixth VAT Directive but" subject to conditions and limitations laid down by each member state": art 13B(f). But in ascertaining the value of the taxable supply, winnings paid out to successful players, whether paid by the machine or claimed from the establishment where the machine was situated, were to be deducted from the total amount of money inserted into the machines.

Robin Matthew QC (Percy Short & Cuthbert) for the taxpayer; Michael Kent (Customs & Excise) for the commissioners.

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