#HMRC

HMRC VAT Ruling Threatens to Cut UK Prize Draw Operator Margins by Up to 35%

HMRC confirmed in early 2026 that paid prize draw entries are subject to standard 20% VAT, sending operators scrambling to model margin impacts of 25% to 35% and potential historic tax exposure. B2B platform DrawHouse says taxation is "a live, immediate commercial concern" across the sector.