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A consulting entity requested clarification on the VAT rate applicable to its strip club activities, which include room rentals, bar services, and live performances. The DGT has determined that the room rental constitutes the principal supply and the bar service is ancillary; consequently, both are subject to the 21% rate.
This ruling clarifies that when bar services are considered ancillary to a main activity (such as room rental in a club), the entire service is taxed at the main supply's VAT rate, preventing the application of reduced rates to the ancillary component.
The tax team reviews your specific situation.
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