The argument between the government and Mecca bingo over VAT being charged on mechanised cash bingo participation fees is close to reaching a climax.

Rank, the group operator for the Mecca bingo chain had taken the revenue and customs to court over VAT being charged staking claims it was contravening European Law.  In the first round of the hearings, the decision was made in Rank's favour but the government had the opportunity to appeal the decision and the appeals process was concluded last Monday.

During the hearing, our sources heard that the case went well and believed the Judge was acting in a fair manner and are cautiously optimistic that the original verdict against the government will be upheld.  The Judge however has now collated all of the evidence and heard the arguments so the judgement will be executed within 40 days and the official decision will be notified by the end of May 2009.

The decision will have a huge impact on the industry and many websites have reported how the government is against giving the industry any tax relief and are adamant in not dropping the VAT.  If the judgement is to scrap VAT on mechanised cash bingo par fees, the Revenue and customs department will have to be prepared for a huge tax claim from the rest of the bingo industry.

The battle against the government is the first of many as the decision will have a further impact on whether the Government is right to charge VAT on main stage bingo, If the decision on VAT for mechanised cash bingo is upheld then it would be almost impossible to defend main stage participation fees against being taxed.

Bingosupermarket are keeping a close watch on this situation and will report the decision as soon as it emerges.