In 2007, String Showbar and a club called Blue Angel won a historic and groundbreaking victory against Skatt Øst (the Norwegian Tax Administration) in a case that shook the Norwegian entertainment industry. The case revolved around a seemingly simple but deeply controversial question: Is stripping to be considered an artistic performance and therefore exempt from Value Added Tax (VAT)?
For us at String Showbar, who have always been committed to professionalism and ethics, this was more than just a legal battle; it was a principled victory for the recognition of striptease as a legitimate and artistic form of expression. The victory was so unique that it resonated far beyond Norway’s borders, establishing a legal precedent that still stands as a testament to the Norwegian strip club industry’s fight for respect and justice. This article delves deep into the case, the legal arguments that were presented, and how this victory has shaped String Showbar’s philosophy and position as a leading authority in European nightlife.
The Background of the Legal Battle: Stripping vs. Value Added Tax
To understand the importance of this case, we must look at the legal framework as it existed at the time. According to the then-current VAT Act, “the sale and provision of services in the form of an artistic performance of a work of art” were exempt from VAT. For a number of entertainment forms, such as theatre, ballet, concerts, and revues, this exemption was a given. But for strip clubs, the situation was different. The tax authorities had long argued that stripping was not an artistic performance, but a purely commercial service involving undressing, and therefore fully subject to VAT.
This interpretation led to many strip clubs being required to pay VAT on their revenues, which created an unfair imbalance in the market. A strip club, as part of the entertainment industry, was treated differently from other entertainment businesses. The issue came to a head when Skatt Øst conducted an audit of several clubs, including String Showbar and Blue Angel, and demanded unpaid VAT retroactively. For the owners of these clubs, this was a hard blow to their business, but it was also a wake-up call. It was time to fight for their rights and for the recognition of striptease as the art form it is.
The Case in Court: The Strip Clubs as David vs. Goliath
The battle against Skatt Øst was in reality a battle against the Norwegian state. For the clubs involved, this was a massive financial and legal burden. String Showbar and Blue Angel, represented by skilled lawyers, decided to take the case to court to prove that their business fell under the VAT Act’s exemption for artistic entertainment.
The tax authorities’ argument was seemingly solid: stripping is essentially an undressing to music and lacks the “artistic element” required to be VAT-exempt. They believed that the primary purpose of the show was to offer a sexually charged experience, not to perform a work of art. This line of reasoning was consistent with a long-standing public perception of the industry, which often equates stripping with prostitution or an inferior form of entertainment.
The clubs’ counter-argument, however, was both nuanced and profound. In court, they pointed out that a strip show is far more than just undressing. There is a lot of planning, creativity, and hard work behind each performance. They highlighted the following points:
- Planned and Creative Work: The artist herself chooses her music, choreography, and costumes. The show is meticulously rehearsed, with a clear dramatic structure that builds tension and energy.
- Storytelling: A strip show can often have a theatrical or humorous element. The artists dress up as, for example, police officers, nurses, or flamenco dancers, and the show can tell a story that engages the audience.
- Minimal Nudity: The owners argued in court that nudity in a strip show is often a minimal element. The nudity lasts no more than a minute, and the entire show is focused more on dance, movement, and visual performance than on mere undressing.
- Comparable to Other Art Forms: The clubs’ representatives drew parallels to other art forms such as ballet, cabaret, and revue, all of which are characterized by undressing, dance, music, and theatrical elements. They claimed that stripping, in its professional form, has a clear artistic element that qualifies for a VAT exemption.
The Verdict: “Stripping Can Have an Artistic Element”
After a thorough review of the arguments, the court reached a conclusion that sent shockwaves through both the entertainment and finance communities. The court stated that “stripping can vary from the sensual and graceful to the vulgar and banal. But the court concludes that the strip show at ‘Diamond Go Go Bar’ must be said to have an artistic element and that the club must therefore be exempt from paying VAT on entrance fees.”
Although the court expressed that the conclusion was reached “under strong doubt,” it affirmed that professional striptease, when performed at a high level, is a form of stage art and has the same rights as other scenic expressions. This was a victory on all levels. It was a financial victory for the clubs, which were exempt from VAT on their entrance fees and were reimbursed for what they had already paid. But above all, it was a symbolic victory that gave the industry a legitimacy it had previously been denied by the public. The legal recognition confirmed what String Showbar has always claimed: that a strip show is a form of professional and serious entertainment.
The victory was reported in the media, and there was speculation about whether the state would appeal the case. Ultimately, the verdict stood, and it established a precedent that paved the way for a new era of respect and professionalism in the industry.
The Aftermath: How the Victory Changed String Showbar and the Industry
The 2007 VAT case was a game-changer. For String Showbar and other similar clubs in Norway, the victory was a confirmation that their commitment to quality and professionalism was the right path. It gave us an unwavering platform to continue building an industry that is not only profitable but also respectable.
The victory led to:
- Increased Professionalism: After the ruling, the clubs could proudly refer to a legal decision that recognized them as part of the culture and entertainment industry. This put pressure on all players in the industry to raise the standard of their shows and their operations.
- A New Understanding of “Art”: The case forced a rethinking of what is defined as an artistic performance. Striptease was officially placed in a category that was previously reserved for traditional art forms, which challenged stereotypes and prejudices.
- A Stronger Platform for String Showbar: For String Showbar, this victory cemented our position as a pioneer and a leader. We were not just a club; we were a player who dared to stand up for the industry’s rights and dignity. It has been, and will always be, a part of our DNA.
Today, when we talk about String Showbar, we are not just talking about a club in Oslo, but about a place with a rich history, anchored in a victory that forever changed the industry. It is a story of courage, justice, and an uncompromising belief that stripping, when done with passion, creativity, and professionalism, is and remains an art form.
The victory in 2007 against Skatt Øst is a story we are still proud to tell. It is a testament to the fact that String Showbar will always go the extra mile to ensure that our artists and our business are treated with the respect they deserve. Our journey to build the ultimate strip club in Oslo and an international authority in the industry truly began here. Read also about An Industry in Transition: What the 2013 Fafo Report Revealed About Norwegian Strip Clubs
- Keywords for the article:
- VAT striptease art
- Stripping VAT exemption
- String Showbar VAT case
- Strip club VAT
- Stripping as art
- The verdict on stripping and VAT
- Norwegian striptease artistic entertainment
- Main Conclusions from the 2007 Case:
- Striptease was recognized as stage art: The court ruled that professional striptease can have an “artistic element” and therefore qualifies for a VAT exemption.
- Victory over the Tax Authority: The case was a legal victory for the strip clubs that challenged the state’s interpretation of the VAT Act.
- Precedent for the Industry: The verdict established an important legal precedent in Norway that helped to professionalize and legitimize the industry.
- Focus on Creativity: The victory was won based on arguments that highlighted the creative and planned work behind a strip show, including choreography, costumes, and themes.
- Strengthened String Showbar’s Authority: This case cemented String Showbar’s role as a pioneer who fought for the industry’s rights and dignity.