2.4.0.82108100 - Disclosure - Value Added Tax Receivabletruefalsefalse1falsefalsefalseD2013Q3YTDhttp://www.sec.gov/CIK0000896400duration2012-10-01T00:00:002013-06-30T00:00:001true1us-gaap_NontradeReceivablesNoncurrentAbstractus-gaap_truenadurationfalsefalsefalsefalsefalsefalsefalsefalse1falsefalsefalse00falsefalsefalsexbrli:stringItemTypestringfalse02false2mgam_ValueAddedTaxReceivableTextBlockmgam_falsenadurationfalsefalsefalsefalsefalsefalsefalsefalseterseLabel1falsefalsefalse00<div style="font-family:Times New Roman;font-size:10pt;"><div style="line-height:120%;text-align:justify;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-weight:bold;">VALUE ADDED TAX RECEIVABLE</font></div><div style="line-height:120%;text-align:justify;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"> </font></div><div style="line-height:120%;text-align:justify;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">The Company's value added tax (VAT) receivable is a receivable from the Mexican taxing authority primarily related to a value added tax levied on product shipments originating outside of Mexico.  At </font><font style="font-family:inherit;font-size:10pt;color:#000000;text-decoration:none;">June 30, 2013</font><font style="font-family:inherit;font-size:10pt;"> and </font><font style="font-family:inherit;font-size:10pt;color:#000000;text-decoration:none;">September 30, 2012</font><font style="font-family:inherit;font-size:10pt;">, the Company’s VAT receivable was </font><font style="font-family:inherit;font-size:10pt;color:#000000;text-decoration:none;">$2.9 million</font><font style="font-family:inherit;font-size:10pt;"> and </font><font style="font-family:inherit;font-size:10pt;color:#000000;text-decoration:none;">$3.5 million</font><font style="font-family:inherit;font-size:10pt;">, respectively.  The majority of the VAT receivable relates to equipment shipments that occurred in 2006 and 2007.</font></div><div style="line-height:120%;padding-bottom:6px;padding-top:6px;text-align:justify;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">During initial operations within Mexico, the Company assumed that it would generate substantial future revenues, thus accumulating VAT payables within the country to offset against the initial and future VAT receivable balances. However, in 2009 the Company made the determination that such revenue generation would not occur at the levels necessary to offset its VAT receivable balances. Therefore, the Company proceeded to file initial refund requests for the 2006 and 2007 VAT receivable balances. This initial refund request prompted an audit by the Mexican taxing authorities and in 2010 the Company received rulings indicating that the Mexican taxing authority had challenged the registration of certain of the Company's transactions that generated a VAT receivable of approximately </font><font style="font-family:inherit;font-size:10pt;color:#000000;text-decoration:none;">$399,000</font><font style="font-family:inherit;font-size:10pt;">, all of which has been fully reserved.  Although the Company has fully reserved for the contested amounts, it has formally challenged these rulings, and continues to believe it has the necessary evidence for a reasonable defense.</font></div><div style="line-height:120%;padding-bottom:6px;padding-top:6px;text-align:justify;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">The VAT audit results also revealed that certain months contained no contested balances, while other months contained one or more contested balances. In fiscal years 2010 and 2011, the Company formally requested refunds for all months in which no contested balances arose from the audit, resulting in the receipt of approximately </font><font style="font-family:inherit;font-size:10pt;color:#000000;text-decoration:none;">$3.6 million</font><font style="font-family:inherit;font-size:10pt;"> in refunds from those uncontested months. The Company's legal counsel suggested the Company wait to file on any portion of the contested months, until amounts were received from the uncontested months. In August 2012, the Company filed refund requests in the amount of </font><font style="font-family:inherit;font-size:10pt;color:#000000;text-decoration:none;">$2.3 million</font><font style="font-family:inherit;font-size:10pt;"> for the remaining uncontested portions of 2006 and 2007. In November 2012, the Mexican taxing authority requested additional documentation which was supplied to them in December 2012. As of June 30, 2013, the Mexican taxing authority has given the Company no indication that the outstanding refund requests will be contested.</font></div><div style="line-height:120%;padding-bottom:6px;padding-top:6px;text-align:justify;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">See the Notes to Condensed Consolidated Financial Statements; Note 11, "Termination of Mexico Operations" and Note 14, "Commitments and Contingencies." </font></div><div style="line-height:120%;text-align:justify;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"></font></div></div>falsefalsefalsenonnum:textBlockItemTypenaCarrying amount as of the balance sheet date of value added taxes due either from customers arising from sales on credit terms, or as previoulsy overpaid to tax authorities.No definition available.false0falseValue Added Tax ReceivableUnKnownUnKnownUnKnownUnKnowntruefalsefalseSheethttp://www.multimediagames.com/role/ValueAddedTaxReceivable12