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

International Tax Review is part of Legal Benchmarking Limited, 4 Bouverie Street, London, EC4Y 8AX

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

The cuts disproportionately affected staff in certain positions, the report also found; in other news, MHA announced the €24 million acquisition of Baker Tilly South East Europe
The plan aims to improve the efficiency, transparency, and effectiveness of direct tax administration in India
Meanwhile, South Africa’s finance minister has accepted a court decision on suspending a VAT increase and US President Donald Trump mulls a 100% tariff on foreign films
Jaime Carey speaks about the benefits of his tax background, DEI values, the use of AI for a smarter legal practice, and other priorities that will define his presidency
Historically low levels of attrition over consecutive years made a ‘difficult decision’ necessary, PwC has reportedly said
WTS Global is also vetting new potential member firms in Algeria, Cote D’Ivoire and Benin, Kelly Mgbor tells ITR in an exclusive interview
The scope of qualifying pillar two tax credits could reportedly be broadened; in other news, hundreds of IRS appeals staff are to resign
For many taxpayers, the prospect of long-term certainty that a bilateral APA offers can override concerns about time, cost and confidentiality
Levine, who served under the Joe Biden administration, led the US’s negotiations on the OECD’s two-pillar solution
The deal to acquire ITR's parent company is expected to complete by the end of May 2025
Gift this article