- The Court of Appeal in Den Bosch has ruled that alcoholic drinks consumed during theater performance breaks are subject to the reduced VAT rate.
- The case involves a foundation that is a VAT entrepreneur and provides access to theater performances and concerts.
- The costs for a drink, the use of the guarded cloakroom, and administrative costs are included in the ticket price.
- The foundation argues that the reduced VAT rate applies to both alcoholic and non-alcoholic drinks, as providing a drink during the break is part of the theater visit.
- The Zeeland-West-Brabant Court did not agree with the foundation’s argument, but the Court of Appeal ruled differently.
- The Court of Appeal states that the provision of access to a performance and the provision of drinks during the break can be easily separated and are not one indivisible economic service.
- The Court of Appeal considers the drink during the break to be an attractive snack or a pleasant conclusion to the theater visit.
- The supply of drinks during the break is considered an ancillary service and is subject to the same reduced VAT rate as the main service of providing access to performances.
Source: taxence.nl
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
