Sex peepshows fall under the category of theatrical performance and thus pay lower value-added tax, an Amsterdam court has ruled in granting an appeal by a peepshow owner against the tax authorities.
The Dutch media reported Tuesday that an unnamed owner had challenged a ruling by the tax authorities that he should pay VAT at 19 per cent, rather than the 6 per cent charged theatres.
The court rejected an earlier ruling in favour of the tax authorities, saying that the sexual nature of the performance and the absence of a vocal aspect made no difference for tax purposes.
The owner had received an additional tax demand of almost 20,000 euros (26,000 dollars), the Telegraaf newspaper reported.
“Working for a peepshow is very labour intensive, so it’s wonderful that the tax is lower and there is more left over,” Andre van Dorst of the Association of Relaxation Companies said.
“The ruling provides clarity.”
– Source: DPA, Feb. 13, 2007
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