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Cultural VAT Clarification: Redefining Combined Event And Catering Charges

by THEFUTURE.TEAM

October 16, 2025

Clear Guidelines For A Changing Landscape

The Tax Department has issued a decisive circular that streamlines the application of VAT on cultural events. Circular 6/2025, signed by Tax Commissioner Sotiris Markidis at the beginning of October, endeavors to eliminate inconsistencies and prevent overcharging by clarifying when VAT should be applied on entry to concerts, performances, exhibitions, and other cultural gatherings—especially when admission includes food or drink.

Simplified VAT For Pure Event Admissions

The new directive stipulates that a 5 per cent VAT rate is applicable to admission tickets for concerts, theatrical performances, fairs, circuses, amusement parks, museums, zoos, cinemas, and similar events, provided that catering services are not included. For instance, a concert held in any venue—from a traditional theater to an unconventional beach setup—will only incur the reduced rate if no food or drink is offered with the ticket.

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Composite Transactions And The Impact On Pricing

Events where admission is bundled with food, drink, or other catering services are subject to a higher VAT rate of 9 per cent. This classification applies even when the consumer opts not to fully utilize the added amenities. Whether it is a Sunday lunch accompanied by live music or a dinner show featuring a notable performer, the entire package is taxed at the higher rate if catering forms a substantial component of the offer.

Guidance On Separate And Combined Charges

The circular further clarifies that if an event organizer charges separately for admission and catering, each component retains its respective VAT rate—5 per cent for entry and 9 per cent for catering. Moreover, optional and distinctly priced catering allows the reduced rate on the admission ticket to remain unaffected, ensuring equitable treatment for both consumers and organizers.

Special Provisions For Premier Performances And Cultural Organizations

A notable adjustment introduced in the circular is the application of a 3 per cent VAT rate on the inaugural public performance of theatrical, musical, or dance events, with subsequent shows taxed at the standard 5 per cent. However, musical events in entertainment venues continue to be governed by the rates applicable to whether food or drink is provided. Additionally, cultural services delivered by public law bodies or non-profit organizations remain VAT exempt, thereby safeguarding their public service impetus.

Considerations For Organizers And Municipalities

The guidance also advises that municipalities, local authorities, and charitable foundations carefully evaluate their VAT registration and payment obligations when organizing ticketed events. This precaution is necessary to avoid inadvertently distorting competition with private sector organizers, which could lead to unforeseen fiscal consequences.

Conclusion

This circular represents a significant step toward ensuring consistency and fairness in VAT application within the event and cultural industries. By clearly delineating the conditions under which varying VAT rates apply, the Tax Department has provided both clarity and predictability—a welcome development for businesses, event organizers, and consumers alike.

The Future Forbes Realty Global Properties

by News Editor

August 24, 2026

Courts Are Still Applying Old Copyright Rules To AI

AI companies train models on enormous amounts of published material, including books, articles and academic research. Whether using that content without authors’ permission violates copyright law remains unresolved.

Much of the debate centres on fair use, which allows copyrighted material to be used without permission in certain circumstances. Courts consider factors such as the purpose of the use, how much material was involved and its impact on the original market.

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Anthropic Case Sets An Important Precedent

A major case involving Anthropic and a group of authors provided one of the clearest rulings so far. Judge William Alsup found that using copyrighted books to train AI models was lawful, comparing the process to people reading and studying literature before creating something new.

Anthropic was nevertheless ordered to pay $1.5 billion in a settlement. The penalty concerned books the company had obtained from illegal online libraries rather than the AI training itself.

For AI companies, that distinction could prove significant because it separates studying copyrighted material from directly copying it.

Competition Could Be The Key Issue

A case involving Thomson Reuters and Ross Intelligence offers a different perspective. A court ruled that Ross could not claim fair use after using Reuters’ copyrighted material to develop a competing AI-powered legal research platform.

The decision suggests courts may be less willing to consider AI training fair use when copyrighted content is used to build a product that directly competes with the original.

For authors, an unresolved question is whether AI-generated content should be considered competition for the works used to train these models.

The Law Has Yet To Catch Up

US copyright law predates generative AI by decades, leaving courts to apply old principles to new technology. Questions also remain over copyright protection for AI-generated works. In Thaler v. Perlmutter, a court ruled that material created entirely by AI cannot receive copyright protection.

Major AI companies remain involved in copyright litigation, and different courts could reach different conclusions. For now, there is no universal rule: the legality of AI training will depend on the circumstances of each case and how courts ultimately interpret copyright and fair use.