Reduced VAT for cinema admissions excluded where films are watched alone in private cubicles.

The concept of "admissions to cinemas" in Category 7 of Annex H to the Sixth Directive must be interpreted strictly as an exception to the standard VAT rate. Its ordinary meaning and context point to services enjoyed collectively by the public on payment of an admission fee. A private cubicle where a single customer watches films alone after inserting a coin and choosing a film lacks that collective character and does not match the ordinary meaning of admission to a cinema. The reduced VAT rate is therefore unavailable for that service.

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Issues: Whether a private cubicle where one person watches films alone, after starting the projection by inserting a coin and choosing among films, falls within the expression "admissions to cinemas" in Category 7 of Annex H to the Sixth Directive so as to justify application of a reduced VAT rate.

Analysis: The relevant provision in Category 7 of Annex H concerns admissions to listed cultural and entertainment facilities, including cinemas. As an exception to the general rule that the standard VAT rate applies, the reduced-rate provision must be interpreted strictly. The concept of admission to a cinema must therefore be understood according to its ordinary meaning and in its context. The listed events and facilities share the feature that the public pays an admission fee to enjoy the service collectively. A private cubicle used by a single customer to watch films alone does not correspond to that common meaning or to the collective character inherent in the concept of a cinema.

Conclusion: The payment made to watch films alone in private cubicles does not fall within the concept of admissions to a cinema under Category 7 of Annex H to the Sixth Directive, and the reduced VAT rate is not available on that basis.

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