European court rules Belgian sex film cabins not a cultural activity

A Belgian sex shop owner's attempt to cut his VAT bill under "cultural exclusions" has been rejected by the European Court of Justice.

The Erotic Cinema in Ghent offers customers private cubicles in which to watch a selection of films.

Its owner claimed it should benefit from the reduced 6% rate of VAT paid by cinema owners, who get a discount under law to promote cultural activities.



Belgium's standard VAT rate is well above that at 21%.

But the Court ruled that what was on offer at the Erotic Cinema was not the type of cultural activity that qualified for the lower VAT rate.

It ruled that these had to be viewed collectively and be open to all, not something that is viewed in the privacy of a booth.