Erotic Center BVBA v Belgische Staat

VAT: Reduced rates

In Erotic Center BVBA v Belgische Staat (ECJ Case C-3/09) a company (E) allowed customers to watch films of their choice from individual cubicles on its premises. It accounted for VAT at the reduced rate of 6%.

The tax authority issued an assessment on the basis that it should have accounted for VAT at the standard rate. E appealed contending that it was supplying admission to a cinema which qualified for the reduced rate under Art 12(3)(a) and Annex H of the EC Sixth VAT Directive. The case was referred to the ECJ for a ruling on the definition of a 'cinema'.

The ECJ rejected E's contentions holding that 'the concept of admissions to a cinema' should be 'interpreted as meaning that it does not cover the payment made by a customer so as to be able to watch on his own one...