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A local council has requested clarification on whether a commercial entity's service to perform a play is exempt from VAT and which rate applies to admission fees. The DGT has determined that if the entity is commercial, the exemption does not apply, whereas the council's admission service is indeed exempt.
This ruling clarifies that the cultural VAT exemption is not automatically granted to commercial entities providing artistic services, even if the performance is held in a public context, thereby ensuring correct tax treatment for commercial versus public service providers.
The tax team reviews your specific situation.
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