Access to shows, theaters, concerts, museums, cinemas, and similar cultural events can be subject to a reduced rate. The services of providing access to music and theater performances, including operas, operettas, dances, revues, and cabarets, are also eligible for the reduced rate. However, the court concludes that the taxpayer has not proven that the services provided meet the criteria for the reduced rate, and therefore, the reduced rate does not apply.The key reasons for the court’s decision:
Focus on the main motive of the visitors: The court considers the primary motive of the visitors when attending the taxpayer’s establishments. It finds that the visitors’ main intention is to have a social and enjoyable night out, including dancing, drinking, and socializing, rather than primarily attending the music performances. The court emphasizes that the performances are of subordinate importance to the overall experience.
Limited promotion and accessibility of performances: The court notes that the taxpayer’s promotion of the artists’ performances is minimal, suggesting that the performances are not the main attraction for visitors. Furthermore, not all visitors can attend the entire performance as the performances take place in limited areas of the establishments. These factors indicate that the performances do not play a central role in visitors’ experiences.
Inconsistent entrance fees: The court observes that on certain days, entrance fees are not charged or are minimal, even when the same artists perform. This discrepancy suggests that the entrance fees are not directly linked to the performances, further undermining the argument that the main service provided is access to the music performances.
Visual evidence of visitor behavior: The court refers to videos and photos provided by the taxpayer, which depict visitors engaging in conversations and not actively focusing on the performances. These visuals support the notion that the visitors’ attention and engagement are not primarily directed towards the music performances.
Source: uitspraken.rechtspraak.nl
