This appeal concerns the VAT liability of supplies of gambling made using slot machines from 1 October 2002 to 5 December 2005 (the Claim Period). The relevant slot machines were known as section 16/21 machines and section 31/34 machines by reference to the provisions of the Gaming Act 1968 and the Lotteries and Amusements Act 1976 that applied to them. During the Claim Period, supplies of gambling made through section 16/21 machines and fixed odds betting terminals (‘FOBTs’) were treated as exempt from VAT.

Section 31/34 machines were regarded as ‘gaming machines’ and were excluded from exemption. The appellant accounted for VAT on supplies of gambling by section 31/34 machines