11. Professional gamblers

Q: How does GST affect a person carrying on an enterprise of gambling (eg professional gambler)?

A: A professional gambler is not required to account for the GST on their net winnings, as they have not made a supply in connection with the receipt of those winnings.

If a professional gambler is registered for the GST, he or she is entitled to input tax credits on things that they acquire for use in their enterprise. However, there is NO entitlement to an input tax credit on the acquisition of gambling supplies ie placing a bet. This is because GST on the supply is charged on the margin of the supply. Input tax credits are not available for acquisitions where GST on the supply was charged on the margin.