Norwich lapdancing club loses VAT appeal

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A Norwich lapdancing club has lost a legal appeal for some of its services to be exempt from VAT.

The appeal to the first-tier tax tribunal was about the application of VAT to the supplies provided by the Sugar & Spice club  to its dancers. 

Dancers earned income from customers for dancing on the dance floor or for private performances in booths. 

Sugar & Spice argued that the booths...

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02nd May 2014 13:35

VAT

so does this mean that the dancers need to issue VAT receipts?

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02nd May 2014 14:35

How much

jonnybennett wrote:

so does this mean that the dancers need to issue VAT receipts?

How much? for the staff party I guess?

 

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follows the treatment of chair rental

This seems to be a logical decision and matches the VAT treatment of chair rental in hair salons where the rent aspect cannot be separated from a raft of other services.

 

Whether individual performers can issue VAT receipts will depend on whether they themselves are VAT registered and would not be dependant on the VAT status of the charges made to them by the club.

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02nd May 2014 15:57

LAP DANCERS IN CLUBS

The club is charging vat on its services to the lapdancer. It does not appear to relate to the charge the LD makes to her clients.Does the club bill the customer or the dancer for her (I assume its female) services.

Business expence?

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02nd May 2014 18:08

Dancers earned income from customers for dancing on the dance floor or for private performances in booths.

Nudge nudge- wink, wink............

More seriously, eminently reasonable. As with all traders, if not registered for VAT then they suffer the vat on incoming expenditure and set off gross against revenue for tax purposes.

However their next potential problem may well be HMRC questioning if the supposed "Dancers" are truly self-employed.

All depends how one defines, err, equipment and tools provided I guess!

 

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