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A query was raised regarding the applicable VAT rate for nightclub entry, whether a DJ performance constitutes a cultural performance, and how to tax entry fees that include refreshments. The DGT has determined that entry is subject to the 10% rate if live performances are provided, and has clarified how to apportion the taxable base when hospitality services are included.
This ruling clarifies the VAT treatment for venues combining entertainment and hospitality, ensuring correct tax apportionment between the reduced rate for cultural events and the standard rate for catering.
The tax team reviews your specific situation.
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