- Three theaters in Brabant, Netherlands, can tax the alcoholic intermission drinks included in a ticket at the low VAT rate of 9%, according to a ruling by the court in Den Bosch.
- The court considers this as one service, overturning a previous ruling by the Breda court.
- The tax authorities had issued a reassessment, arguing that the provision of intermission drinks is not an additional service, but a standalone service.
- The court ruled that from the perspective of an average visitor, obtaining an intermission drink is a separate interest from attending the theater performance.
- However, the court disagreed on the concept of additional service, stating that for the average consumer, the intermission drink is not an end in itself but makes a visit to a performance more attractive.
- The court concluded that there is a single service, consisting of multiple elements, which should be taxed at the rate of the main element.
- In two other cases, the court came to the same conclusion; one of the theaters therefore does not have to pay €15,000 in back taxes.
Source:
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.
