VAT & Vending Machines

Sinclair Collis had allowed machine operators (of vending, amusement and similar machines) to position machines in their pubs for a payment. The question the European Court of Justice had to decide was whether the payments were for a licence to occupy land and VAT exempt, or for a right to sell goods and vatable. The Court decided the latter and accordingly VAT is payable on the payments.

Customs have said that site owners previously exempting supplies can do so until 1st January 2004 but after that VAT must be charged. Contracts will need to be looked at and if we can help let us know.