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Report

Annual report and Accounts 2019 to 2020

Making gambling fairer and safer

  1. Contents
  2. g) Value added tax

g) Value added tax

The Commission is not registered for VAT and therefore all costs are shown inclusive of VAT where VAT has been charged.

IFRS 15 introduces a new five stage model for the recognition of revenue from contracts with customers. The core principle is to recognise revenue so that it depicts the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled to in exchange for those goods or services. The Commission have considered the five-step process and have determined no change to the revenue recognition approach.

The Commission collects fee income in relation to the Act. In accordance with its Financial & Accounting Policy, the Commission recognises income in the following way:

Operator licence application fees: Income is recognised in full when the operator licence is issued.

Operator licence annual fees: Income is recognised equally over the duration of the licence.

Personal licence fees: 60% of the Application income received is recognised when the licence is issued (to reflect the application costs). The remaining 40% is recognised equally over the duration of the licence (i.e. 5 years).

35% of the Maintenance renewal income received is recognised when the licence is issued (to reflect the renewal costs). The remaining 65% is recognised equally over the duration of the licence (i.e. 5 years).

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