A: The need to answer difficult questions means this entry fee is not for a VAT exempt lottery and is unlikely to qualify for exemption as a “game of chance” either due to the skill/knowledge required. As such, the entry fee would be taxable at the standard-rate of VAT (currently 20%). If the questions were very easy, then this would be akin to a lottery and therefore exempt (but might instead be subject to lottery duty). Paras 4.1 of VAT Notice 701/29 and 2.4 of Duties Notice 458 cover this.
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