This follows a consultation process that ran until 12 October, and the approval of the necessary legislation at the Tynwald sitting on 20 November.
From 1 February 2013, MGD will be payable at an inclusive rate of 15% on the net takings of relevant machines, irrespective of where the machines are located. Where MGD is applicable, VAT will no longer be payable on the same takings. Otherwise the current VAT law and rules remain in force in relation to machines.
MGD will be payable on machines where one plays for a prize, that prize is of cash and the cash prize is greater than the smallest stake the machine accepts.
You will need to register with Customs and Excise if you hold, or are required to hold, the relevant licence or certificate from the Gambling Supervision Commission for the operation of such a machine (which may be described as a 'controlled machine'), or if you are covered by some exception or exemption that means you do not require such a licence or certificate.
Such licences and certificates are those issued under the Gaming (Amendment) Act 1984 or the Casino Act 1986, and to licensed bookmakers under the Gambling, Betting and Lotteries Act 1988.
If you own or control more than one site containing machines, you need only register once, but must provide details of each site.
Those who may need to register include the casino, licensed bookmakers, arcades, public houses, clubs and any other shop or premises where a 'dutiable machine' is situated.
You may wish to appoint an agent to take care of MGD for you, and this could be your current supplier (for example, if they already remove takings from the machine and pay over to you your share of the profits). The procedure for doing this will be straightforward, and you will be able to appoint such an agent on the same form you use to register.
You should check now to see if you are the holder of a relevant licence or certificate, or are responsible for the operation of a dutiable machine on your premises.
New Public Notice 452 MAN will be available on the Customs and Excise website and provides further details about the new duty. The necessary application forms will also be found on the website.
You can apply to register from 1 December 2012, and you must be registered before the starting date for the duty on 1 February 2013.
For more information contact:
P.O. Box 6
Isle of Man
+44 1624 648100