VAT on the supply of alcoholic beverages is chargeable at the standard rate (21%). Attempts are regularly made to have the alcoholic beverage form part of a supply subject to the reduced rate (9%).
Boat tour
Such an attempt is also discussed in a ruling by the North Holland District Court. This case concerns a shipping company that offers package deals. A package deal consists of a two-hour boat trip, including a four-course dinner. The (alcoholic) drinks are included in the package. The shipping company charges the total fee for the packages at the reduced VAT rate. It takes the view that this constitutes a comprehensive service involving the carriage of passengers by boat.
One achievement
The court also takes the view that this constitutes a single supply: the package. However, that supply cannot be classified under the reduced VAT rate. The package holidays cannot be regarded as the carriage of passengers. Nor do they fall under any other category to which the reduced VAT rate applies. VAT must therefore be paid at the standard rate (21%) on the entire fee received by the shipping company for the package holidays.
For previous attempts to bring the supply of alcoholic beverages within the scope of the reduced rate, please refer to the articles listed below.