The Dutch Supreme Court had to decide on whether or not a gay sauna could be treated as a ‘normal’ swimming pool (entrance fee subject to the reduced VAT rate) or not.
The case concerns a sauna, where visitors paid an entrance fee, for entering the premises, includes the use of a towel and a drink. The sauna include changing rooms, a smoking area, a lounge with bar and catering facilities, rest areas, jacuzzi, Turkish steam bath, Finnish sauna, dump bucket, massage room, shower facilities, darkroom; gloryhole carousel, cabins with a door, without lock, and condom and lubricant dispensers. The condoms and lubricants were made available free of charge.
The Amsterdam Court of Appeal concluded that the combination of the elements sauna and the opportunity to have sex, characterizes the total service. The services provided cannot therefore be regarded as services provided by an operator of bathing and swimming facilities or as providing the opportunity to bathe. The reduced VAT rate is therefore not applicable.
The Supreme Court agreed with this view.
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