Introduction
Three theatres appealed because they did not agree with the position of the Tax and Customs Administration that they were not allowed to apply the reduced VAT rate to the provision of alcoholic intermission drinks.
The sale of alcoholic beverages is normally taxed at the regular VAT rate of 21%.
Conclusion
As a result of the Court’s ruling, theatres can now offer alcoholic intermission drinks at the reduced VAT rate. There are snags here. Visitors may not be given the choice of whether or not to enjoy an intermission drink and the theatre may not be open to a wider audience. That would create a café function and then we would have to fall back on the regular rules.
Source: www.btwinstituut.nl
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