One drink, two supplies?

When the curtain falls for intermission, the theatre experience quietly shifts. Applause turns into conversation, seats are exchanged for the foyer, and—traditionally—a drink appears in hand. Until recently, that small glass of wine seemed fiscally unremarkable.

Then HR stepped in.

The decision to draw clearer boundaries around alcoholic intermission drinks was motivated by responsibility and workplace policy—but it also mirrored a much larger legal discussion: when does something that feels like part of the experience become a separate supply for VAT purposes?

This question sits at the heart of long‑standing EU Court of Justice case law. The Court has repeatedly held that supplies must, in principle, be assessed separately. Only where different elements are so closely linked that they form a single, indivisible economic supply—or where one element is merely ancillary to a main service—should they be treated as one.

The test is deceptively simple: what does the average consumer really come for?

Applied to the theatre, admission to the performance is unquestionably the main attraction. But the drink during the break? It is not consumed during the performance, it is not necessary to enjoy the play, and—perhaps most telling—it can be valued, served and enjoyed independently.

In March 2026, the Dutch Supreme Court (Hoge Raad) confirmed this view. It ruled that an intermission drink included in the ticket price does not merge into the cultural service. Even when bundled into a single price, the drink remains a stand‑alone supply. For alcoholic beverages, that means the standard VAT rate applies—no matter how elegant the setting or refined the programme.

HR’s policy decision thus does more than regulate behaviour. It reinforces a conceptual line that VAT law insists on drawing: cultural enjoyment and hospitality may complement each other, but they do not automatically become one and the same.

If there is a lesson here, it is a familiar one to VAT practitioners. Atmosphere does not equal integration. Tradition does not override structure. And not everything that feels “part of the evening” follows the same fiscal fate.

In VAT—as on stage—supporting acts matter. Occasionally, they even steal the spotlight.

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Toon Hasselman is an experienced (30 years) high level VAT and customs specialist to both national and international companies. He provides simple and practical solutions, quick “outside the box” alternatives if necessary, and promotes a no-nonsense approach with conclusive solutions at a fair cost. Toon is also the Global Vice Chair of the GGI Indirect Taxes Practice Group.