BFG: Brothel Operator May Be Subject to VAT on Sexual Services

• The BFG ruled that a brothel operator can be considered the provider of sexual services for VAT purposes.
• This applies if the prostitutes are integrated into the operator’s business and the operator appears as the provider to clients.
• The BFG’s decision aligns with previous rulings on brothels, which include an entertainment area in addition to hourly rooms.
• The operator provided rooms, administrative support, security, and a dress code for the prostitutes.
• The operator advertised on a website and clients booked appointments through the operator.
• The operator received a share of the fees paid by clients to the prostitutes.
• The BFG determined that the operator was the provider of the service to clients, not just a landlord.
• The operator was responsible for paying VAT on the entire fee received from clients.

Source: lesen.lexisnexis.at

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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