Sportech prevails in multi-million pound VAT claim

News on 8 Dec 2016

An eight-year long, GBP 97 million VAT repayment claim dispute between Sportech PLC and HM Revenue and Customs (HMRC) has come to an end with the Supreme Court refusing HMRC permission to appeal a previous Court of Appeal ruling.

The Court of Appeal’s unanimous judgement in favor of Sportech, concerning a VAT repayment claim on the company’s “Spot the Ball” game (see previous reports), resulted in the HMRC paying Sportech GBP 93 million of the claim around June 2016.

Along with the outstanding GBP 4 million, the Supreme Court ordered HMRC pay costs, which will need to be assessed.

“We are delighted that after nearly eight years, this case is now over and the Supreme Court has upheld the unanimous decision of the Court of Appeal,” Ian Penrose, chief executive officer of Sportech said.

The book is not entirely closed on this case though, as Sportech awaits the outcome of an additional claim due to be heard in the Supreme Court in July 2017. This case could entitle the company to receive compound interest, rather than simple interest, on the overpaid VAT amount.

The company surmises a successful outcome could more than double the total sum received to date.

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