Norwich lap-dancing club denied VAT exemption for private booth hire

International Tax Review is part of Legal Benchmarking Limited, 1-2 Paris Garden, London, SE1 8ND

Copyright © Legal Benchmarking Limited and its affiliated companies 2025

Accessibility | Terms of Use | Privacy Policy | Modern Slavery Statement

Norwich lap-dancing club denied VAT exemption for private booth hire

booths.jpg

A lap-dancing club called Sugar & Spice, based in Norwich in the UK, has lost its dispute with HM Revenue & Customs (HMRC) over whether the hiring of private booths qualifies for a VAT exemption. The club claimed that cash generated from its supply of booths – used by dancers for private performances – should not have a VAT charge attached to it. The club provides an "exempt supply of land" for an agreed time period, it argued.

In October 2012 a New York lap-dancing club, Nite Moves Gentleman's Club in Albany, tried to convince a New York tax court that nude lap-dances should be considered a form of art, and therefore they should be entitled to the same exemption afforded to other "live dramatic or musical arts performances". Nite Moves wanted admission fees, as well as money generated from private dances, to be tax exempt.

Regardless of the dispute's outcome, Tax Relief doubts whether there would have been an upsurge in the number of people keeping hold of their VAT receipt from Sugar & Spice for the purposes of claiming expenses.

more across site & shared bottom lb ros

More from across our site

ITR’s data has highlighted the US firm’s ambition to become America’s ‘premier’ tax player via a concerted partner recruitment strategy
Jaap Zwaan’s arrival continues a recent streak of A&M Tax investing in the region; in other news, the US and Japan struck a deal that significantly lowered tariff rates
In a world where international tax concepts rely on human activity, Leonard Wagenaar poses existential questions about the future of such ideas when AI is ever-present
France v Axa provides a practical illustration of how the burden of proof is applied in TP matters under French law, ITR also heard
In an exclusive interview with ITR, Ian Gary calls for a central public CbCR database and bemoans the US’s lack of involvement in international tax transparency
Reckitt Benckiser is to divest its Essential Home business, which includes more than 70 brands, to private equity firm Advent International
In the first of a new series of weekly opinion pieces, ITR Editor Tom Baker reflects on the OECD’s attempts to sanitise the US’s brazen pillar two negotiations
The threat of 50% tariffs on Brazilian goods coincides with new Brazilian legal powers to adopt retaliatory economic measures, local experts tell ITR
The country’s chancellor appears to have backtracked from previous pillar two scepticism; in other news, Donald Trump threatened Russia with 100% tariffs
In its latest G20 update, the OECD also revealed tense discussions with the US where the ‘significant threat’ of Section 899 was highlighted
Gift this article