Running a competition on Raffall is straightforward — but when it comes to VAT, it’s natural to want clarity, especially for higher-value prizes like cars or property.
This guide explains how VAT typically works in the context of Raffall competitions, so you can understand the principles and know what to check with your accountant.
1. Are Raffall entry fees subject to VAT?
Raffall competitions are structured as prize competitions, not traditional lotteries or ticket sales.
In most cases, entry fees for prize competitions are not subject to VAT.
This is because entrants are paying to participate in a prize competition rather than purchasing a good or service in the conventional sense. Raffall competitions also include a free entry route, which is an important factor in how they are structured.
2. Who is responsible for VAT?
The key principle is:
VAT is applied by the entity receiving the proceeds
Raffall facilitates the competition, but the proceeds belong to you as the host. This means the VAT position depends on your setup.
If you are an individual
- You receive the proceeds personally
- You would account for this income in your personal tax return
- VAT is not typically applied
If you are operating through a company
- The company receives the proceeds
- If the company is VAT registered, it is responsible for determining whether VAT applies and accounting for it correctly
3. What about VAT on property prizes?
This is a common question for property raffles.
Residential property (e.g. houses, flats, chalets)
- The sale of residential property is typically exempt from VAT
- This means VAT is usually not charged on the sale price, even if owned by a VAT-registered company
New builds
- Often zero-rated (0% VAT)
- No VAT is charged to the buyer, but VAT can usually be reclaimed on costs
Commercial property
- Normally exempt
- However, if the owner has opted to tax, VAT (usually 20%) may apply to the sale
Because property VAT treatment can vary depending on ownership structure and history, it’s important to confirm your specific situation.
4. How Raffall fees are treated
Raffall charges a platform fee for hosting your competition.
- These fees are handled by Raffall
- VAT is included where applicable
- This is separate from your competition proceeds
5. Key takeaway
- Entry fees for Raffall competitions are typically outside the scope of VAT
- The VAT position depends on who receives the proceeds (you as an individual or your company)
- Residential property prizes are usually VAT exempt
6. Important note
We’re not able to provide tax advice, and VAT treatment can vary depending on your specific circumstances.
We always recommend confirming your setup with a qualified accountant or tax advisor before launching your competition, particularly for high-value prizes such as property.
Need help?
If you’re planning a competition and want to sense-check your setup, you can contact our team and we’ll be happy to guide you through how Raffall works.
Get in touch