- The dispute is about whether the reduced VAT rate applies to the provision of karaoke booths in an entertainment center.
- The BV argues that it should apply because the booths are a form of granting access to a facility primarily for entertainment and recreation.
- However, the Tax Authorities disagree.
- The Amsterdam court states that the reduced rate only applies to events and facilities that are accessible to the public and require prior payment of an access fee.
- The person must enjoy the events and facilities with others who have also paid for it.
- In addition, the facility must be comparable to an amusement park, playground, or ornamental garden.
- In this case, the BV’s karaoke booths do not meet these criteria because the price is based on the use of the booth by the person/group that booked it, and there is a maximum number of people allowed in the booth.
- The person who books the cabin determines who is admitted, not the BV. Therefore, the reduced VAT rate does not apply.
Source Taxence
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