Sportech confirms HMRC VAT repayment of £93m

Sportech has announced that the UK’s Her Majesty’s Revenue & Customs (HMRC) has paid the company £93 million (€112.5 million/$124.6 million) in relation to a VAT repayment claim on its ‘Spot the Ball’ game.

The firm also said a balance of approximately £4 million will be paid to the firm in the event of a successful final determination.

The long-running case began in 2013, when a First-Tier Tribunal ruled in favour of Sportech and the company received £93 million in repayments from HMRC.

This ruling was then reversed in September 2014 when Sportech was ordered to repay all funds after HMRC lodged an appeal.

However, in May of this year, Court of Appeal Judges voted to reverse the ruling once again and said that Sportech should be allowed to keep the funds.

The Court of Appeal turned down a request from HMRC, instead giving the tax body permission to apply to the Supreme Court to appeal the decision.

Although the Supreme Court is yet to make a decision on the request, should the tax body be given the right to appeal and the Supreme Court overturn the Court of Appeal and rule in favour of HMRC, the monies and any related interest would need to be repaid.

Related article: HMRC to push ahead with Sportech VAT appeal