Interesting Facts

Considered an art, striptease is exempt from VAT in Norway.
Reported by Agence France Press on 4 May 2005

Striptease is an art and should therefore be exempt from value-added tax (VAT), a Norwegian court has ruled.

The Diamond Go Go Bar in Oslo took the Norwegian state to court after it tried to impose VAT on entry fees to the club.
But in the Oslo district court's verdict, a copy of which was obtained by AFP on Wednesday, the judge ruled that striptease performances should benefit from the VAT exemption granted to opera, ballet and theatre performances among others.

The club's lawyer had argued in court that other shows, such as comedians telling dirty jokes or sword-swallowers, were not subject to VAT on ticket prices.
"To the court's knowledge ... in certain places, especially abroad, one can see incredibly beautiful artists move gracefully to music, with sensual movements and gradually taking their clothes off, which gives many clients a very nice experience," the judge said.

"There are also other kinds of striptease shows ... that can only be considered banal and vulgar and which have very little to do with a stage show," he said.
Since the Diamond Go Go Bar prohibits dancers from having any contact with clients, the club can be considered as falling in the first category, the judge said.

The club's owner did however agree to pay VAT on the cloakroom's revenues.

India - Raincoat makers to protest against VAT anomalies
Reported in Hindu Business Line of 17 May 2005

AROUND 500 raincoat manufacturers of Maharashtra decided to go on a token strike on Thursday in protest against discrimination by the State Government by leaving out raincoats from the 4 per cent VAT structure.
The manufacturers/traders will take out a morcha (“a mass agitation”)on Thursday afternoon and proceed to the office of Sales Tax Commissioner, Mazgoan.

The other products including umbrella and rainy footwear have been put under the 4 per cent VAT structure leaving raincoats under 12.5 per cent VAT. Raincoats are manufactured with the help of raw materials like PVC sheet, fabrics etc., and even these attract 4 per cent VAT.
"We will hand over a memorandum to the Sales Tax Commissioner, demanding immediate clarification on the duty structure of raincoat," said Mr Iqbal Memon, President of Federation of Readymade Raincoats Manufacturers' Association, in a release.

In fact, the State Finance Minister Mr Jayant Patil has assured the Federation that the oversight will be rectified by the empowered committee. Since the State Government has not issued a clarification most of the business has been driven to other States such as Gujarat and Tamil Nadu he alleged.
While Gujarat has totally exempted raincoats, both Tamil Nadu and Delhi have imposed four per cent VAT.