No reduced VAT rate for open-air performances

The Zeeland-West-Brabant District Court ruled that the term ‘cinema’ must be strictly interpreted in order to apply the reduced rate of turnover tax. A private limited company operates an animation studio that organizes an open-air performance consisting of projecting animation images and light effects in a park. The court is in dispute as to whether the reduced rate of turnover tax applies to the granting of access to the performance. The court ruled that the activities and services offered by the company did not meet the definition of the term ‘cinema’, and therefore the reduced rate does not apply.

Source Taxence

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