Filenews 16 October 2025 - by Eleftheria Paizanou
Do you go to concerts, museums, theatre performances or other events and gatherings? But do you know when you have to charge VAT when entering in such cases?
A circular of the Tax Department attempts to put order in relation to the tax treatment of the right to enter events and especially when the entrance is combined with the provision of restaurant or catering services. The aim is to remove the distortions and injustice observed at the expense of taxpayers. It has been found that, in some cases, citizens, due to the ignorance of some companies in charge of the provisions of the legislation, pay more VAT than provided.
When do you pay 5% VAT?
Specifically, a reduced VAT of 5% is imposed upon entry to concerts, performances, circus performances, festivals, amusement parks, concerts, museums, zoos, cinemas, exhibitions and other similar types of events. Provided that no catering services are offered in these places and for these events.
In the circular, signed by the Tax Commissioner Sotiris Markides, it is explanatory indicated that a concert is an event of an artistic nature, which is held in a theatre amphitheater, stadium, concert hall, parking lots, at a festival/festival, on the beach, in outdoor spaces, in a school hall or other suitable places that can host such events. In these cases, taxpayers are charged 5% VAT on concert entrance tickets, provided that the ticket does not include food or drink.
Also, a reduced VAT of 5% is imposed on entrance tickets for events of an artistic nature that take place in a private space, such as entertainment centers, hotels or other similar places, but again provided that the entrance ticket does not include restaurant and catering services. For example, a citizen who goes to a concert held in a hotel, without being provided with food and drinks, will pay 5% VAT with the ticket.
When is 9% VAT charged?
On the other hand, taxpayers are charged 9% VAT for restaurant and catering services (i.e. for the provision of food and drink). In cases where concerts, performances and other artistic events include restaurant, catering or any other similar service and the consumer pays money for entry, regardless of whether he will use all the benefits of the transaction, then he will pay 9% VAT.
These services - which are included in the entrance price - can be for lunch, dinner, cheese platters or nuts. For example, on a Sunday outing for a buffet, accompanied by music from a singer or band, the entire transaction is subject to 9% VAT. The same applies in the case of a festive dinner with live music, as well as a dinner with a special increased price accompanied by a popular singer, regardless of the seat where the customer will be seated.
Judgement
However, following a decision of the European Court of Justice concerning the single transaction (an entrance ticket that includes 1-2 drinks and the citizen pays a price without being able to choose whether to buy all the elements of the transaction), the tax rate is determined taking into account the type of basic transaction that the supplier aims at and the recipient enjoys.
Therefore, in the event that the entrance ticket of a performance includes other benefits, but it is clear that the basic transaction is the right of entry, then the taxpayer is charged with 5% VAT. However, in the event that the entrance ticket to a performance – event states a food offer, then 9% VAT is imposed.
Of course, there is also the different tax treatment, in case the entrance and the food/drink are charged differently. That is, the taxpayer will be charged 5% VAT for the entrance ticket and 9% for the food and the amount.
Premieres 3% VAT
When it comes to a first performance, i.e. premiere, for theatrical, musical, dance works, then the VAT is 3%. In the next performances of the same play, which will follow the premiere, citizens will be charged with 5% VAT. This provision does not apply to concerts or music events held in entertainment venues.
Without VAT
Excluding VAT is the supply of services of a cultural nature linked to public bodies and other non-profit cultural organisations.
Finally, in the event that local authorities or charities organise events with entrance tickets and which create a risk of distorting the conditions of competition to the detriment of other taxpayers, then the obligation to register and pay VAT should be considered.
