Machine Games Duty

From 1 February 2013 the VAT liability of the takings from certain gaming machines changed from standard rated to exempt, with VAT being no longer due on them.

At the same time a new tax was introduced. This new tax, Machine Games Duty (MGD), is payable by any person or organisation that operates such machines. As a result, the person responsible  (such as the holder of a certificate or licence from the Gambling Supervision Commission) is required to register with Customs and Excise. Penalties exist for failure to register and account for MGD.

Please note, it is the operator of the machine that must register, not necessarily the machine owner.

Further details as to how the tax will operate can be found in the Public Notice 452 MAN.