VAT on swimming pool entry subject to reduced rate – Amsterdam Court

In this case, the Amsterdan Court has to decide if the owner of a swimming pool is providing ‘sports services, which are exempt from VAT, or if its ‘giving access to a swimming accomodation’, which is subject to VAT (reduced rate).

• Inspector argues that the services are exempt from VAT under sports exemption, as swimming qualifies as a sport.
• Objectives of the facility determine if service is related to sports.
• Claimant argues that its activities are not exempt under sports exemption, but that the services include giving access to pools and day recreation. The element of sport is secondary, and the service should be taxed at reduced VAT rate.
• Court considers that the sports exemption only applies to sports services and ‘closely related acivities’.
• In this case, the majority of the visitors is not coming to the swimming pool to receive ‘sports services’, but instead to use the sports facilities, which include the swimming pool and the surroundings. “The average consumer considers recreational swimming to be the predominant element of the services for which these fees are paid.”
• Thus, the Court rules that the services are not exempt from VAT, but are subject to the reduced VAT rate.

Source: uitspraken.rechtspraak.nl

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.

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