Omaze has launched an appeal against HMRC over the tax treatment of paid entries in its prize draws. The dispute centres on whether such entries should be subject to standard-rate VAT. Omaze describes itself on its website as a prize draw platform rather than a charity raffle, house raffle, lottery or cash lottery.
The outcome of the case will determine how the platform's business model is taxed by UK authorities and could have implications for similar prize draw operations.