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A query was made regarding the VAT rate applicable to entry fees for party venues and nightclubs, and whether a DJ performance constitutes a cultural show. The DGT has determined that general entry is taxed at 21%, but reduces to 10% if live performances (including DJs) are provided or if the amount constitutes a pre-payment for hospitality services.
This ruling clarifies the VAT distinction between general nightclub entry and entry fees that include live entertainment or pre-paid consumption, affecting tax compliance for venue operators.
The tax team reviews your specific situation.
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