BGR 59: Calculation of VAT for table games of chance

“Table game of chance” means a “gambling game” as defined in the National Gambling Act 7 of 2004 that is played against the casino and operated by one or more live croupiers.

“Gross gaming revenue” determined under the applicable provincial gambling legislation for each table game means the closing bankroll plus credit slips for cash, chips or tokens returned to the casino cage, plus drop (cash, plaques and cash withdrawal slips), less opening bankroll and fills to the table.

Reference to the “VAT Act” is to the Value-Added Tax Act 89 of 1991.

Ruling

Casinos may account for Value-added Tax, (“VAT”) on their VAT returns,  in  respect  of  table  games  of  chance,  on  the “gross  gaming revenue”,  for  the relevant tax  period,  subject to the following:

• Gross gaming revenue in respect of table games of chance must be included in field 1 of the VAT return, with the tax fraction applied to that amount reflected in field 4.
• Casinos are not entitled to any deductions under section 16(3)(d) of the VAT Act if such amount has been included in calculating the gross gaming revenue.
• Casinos are required to maintain adequate records to enable the Commissioner to verify the validity and accuracy of the tax liability calculated and included in the VAT return as set out above, and in particular, the records for the purpose of audits conducted by the provincial Gaming Boards.

Find a copy of BGR 59 here.

21/01/2022