Omaze Appeals Against HMRC Over VAT Treatment of Paid Entries in Luxury House Prize Draws
Luxury house prize draw platform Omaze has appealed to the First-tier Tax Tribunal against the tax authority's position on whether paid entries in its draws are subject to standard-rate VAT. Omaze has confirmed it has been paying VAT in the UK since 2021. The platform describes itself on its website as not a charity raffle, house or cash raffle, or house or cash lottery, but a prize draw.
Why this matters
The case raises an unresolved question about how VAT applies to paid-entry prize promotions that sit outside traditional lottery or charity raffle structures. A ruling against Omaze could require retrospective accounting adjustments and alter the commercial model for the growing UK prize-draw sector. The outcome may also have implications for other platforms operating similar consumer-facing competition products.
On the Ground
The dispute activates tax litigation and indirect tax advisory practices. Counsel will be needed to argue statutory construction of VAT legislation as applied to novel prize-draw mechanics. A trainee would assist with case management, document review, and research into the VAT treatment of analogous gaming and competition products.
Interview prep
Question you might get
“How does VAT law currently treat paid-entry prize draws, and what would a ruling in HMRC's favour mean for the sector?”
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