The provision of access to musical performances is subject to the reduced VAT rate (9%). However, this is only the case if the visitors are there for the music.
Nightlife venue
The case was recently heard at the Arnhem-Leeuwarden Court of Appeal case of a private limited company that operates a night-time entertainment venue. The company organises evenings featuring a programme of DJ sets. An admission fee is charged for these evenings, and there is a charge for the cloakroom. The company accounts for VAT on the admission fees at the reduced rate because it considers this to be a small-scale music festival.
Minor performances
However, the Court of Appeal agrees with the District Court, which concluded that the DJs’ performances were of secondary importance. The tax judge substantiates this, amongst other things, with the announcements of the evenings on Facebook, which show that there is only minimal promotion of the artists. Videos posted on YouTube show visitors standing in small groups, chatting with drinks in their hands, which, according to the Court of Appeal, indicates that the performances were of secondary importance. Nor do the photographs in the case file depict a (dancing) crowd primarily focused on the performances.
The Court also notes that, on Fridays and Saturdays respectively, it was usually the same performers who appeared. Furthermore, on some evenings the DJs’ sets last between 60 and 90 minutes, whilst on other evenings they last for the entire opening hours of the nightclub.
Day-time leisure activities
The company also argues that this involves granting access to a facility permanently equipped for leisure and day-time recreation. However, as is apparent from a ruling According to the Supreme Court, this requires facilities such as those found in amusement parks and playgrounds. This is not the case in the catering establishment.