- Entry to a disco where a disc jockey performs will be taxed at 10% VAT.
- The consulting company has a hospitality business that includes a terrace serving dinners and alcoholic beverages, and an interior area serving only alcoholic beverages with daily disc jockey performances.
- The company has been applying a 10% VAT rate to services provided on the terrace and a general rate of 21% to sales in the disco.
- According to the law, the general VAT rate is 21%, but there are exceptions for certain services, including hospitality services.
- The law states that hospitality services, including those provided in a disco, should be taxed at a reduced rate of 10% regardless of whether they are combined with recreational services such as shows or music performances.
- However, the entrance fee to the disco, separate from the hospitality service, should be taxed at the general rate of 21%.
- There is also an exception for continuous disco services or live cultural performances, which should be taxed at 10% VAT.
- This information is for general purposes and does not constitute professional advice. For clarification, contact the relevant authorities.
Source: audiconsultores-etlglobal.com
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.
