This article answers the following questions:

• Can erotic shows qualify as cultural services?
• Does the controversial nature of the content affect the taxation method?
• How are cultural services taxed?

Tax law applies to everyone, regardless of the industry in which they earn income. Every entrepreneur – whether investing in real estate, brokering the sale of agricultural machinery, providing IT services, or preparing erotic shows – may have doubts about the correct method of taxing their remuneration and may turn to Polish tax authorities for an interpretation of the regulations. Officials analysing such issues must set aside moral considerations and look at the problem solely from a tax perspective.

Dispute over the interpretation of “cultural services” by the tax authority

The dispute discussed today concerns an individual interpretation. In an application to the Head of the National Revenue Administration Information Centre (NRAIC), the taxpayer indicated that they plan to provide online “cultural services” consisting in presenting original shows and artistic performances of an erotic nature, delivered via a dedicated portal.

The taxpayer described themselves as an artist creating works as part of a creative process and emphasised that the performances would include dance and choreographic elements, and the activity would have nothing to do with producing pornographic content.

However, the Head of NRAIC concluded that the planned shows do not meet the criteria of “cultural services” within the meaning of the VAT Act. In the authority’s view, although the applicant acts as an individual creator and performing artist within the meaning of copyright and related rights legislation, this activity cannot benefit from the VAT exemption provided for cultural services remunerated in the form of royalties under Article 43(1)(33)(b) of the VAT Act.

The tax authority justified its position by stating that not every creative activity automatically constitutes a cultural service. According to the Head of NRAIC, the purpose of the show described by the taxpayer is not to promote culture or national heritage, but something entirely different. Moreover, the authority argued that it is difficult to recognise that such activity serves a public interest that could justify reducing the cost of access to the service by exempting it from VAT.

Law and equality above emotions – a different approach of administrative courts to erotica

The Voivodship Administrative Court in Gliwice (judgment of 19 April 2022, case ref. I SA/Gl 1527/21) disagreed with NRAIC’s reasoning.

The Court stated that the exemption referred to in Article 43(1)(33)(b) of the VAT Act is not conditional upon cultural services serving the public interest. The provisions merely require that such services be provided by individual creators or performing artists within the meaning of the Copyright and Related Rights Act and remunerated in the form of royalties.

The Court adopted a broad approach to interpreting the concept of “cultural services”, emphasising that the erotic nature of a performance cannot automatically exclude it from the possibility of benefiting from VAT exemption – such an interpretation would be excessively restrictive. The Court argued that erotic themes are a natural element of human life and interpersonal relationships, as well as an inseparable part of culture – present in literature, theatre, film and art. Consequently, if a performance with erotic themes does not involve unlawful behaviour and is not limited solely to presenting content that violates moral norms, it cannot be denied cultural character, nor can it be claimed that it fails to serve the public interest.

This reasoning was also endorsed by the Supreme Administrative Court in its judgment of 16 October 2025, case ref. I FSK 1342/22, which stressed that erotic themes are a natural element of everyday life, interpersonal relationships and broadly understood culture. The Court held that if the described erotic show does not involve criminalised behaviour and is not confined to depicting sexual acts (and the creator’s intention is not to arouse sexual excitement in the audience), then – in accordance with the applicable provisions – its cultural character cannot be denied.

Unexpected conclusions from judgments relevant to every vat taxpayer

The case concerning the possibility of VAT exemption for income from an online erotic show caused considerable stir and was widely commented on by the media and tax advisers. Most discussions, however, focused on the controversial facts and the outcome of the case, rather than on how professionally and objectively both administrative courts approached the issue.

The case may have evoked emotions, but courts should primarily be guided by the letter of the law and applicable principles and tax characteristics, not by subjective feelings. And that is exactly what happened here. Both the Voivodship Administrative Court in Gliwice and the Supreme Administrative Court rose to the occasion, analysing the provisions while respecting the principle of equality, despite the controversy wrongly raised by the Head of NRAIC.

The role of both tax authorities and administrative courts is to interpret the provisions in accordance with the applicable law, not to restrict taxpayers’ rights based on moral convictions. It is the legislator who, when drafting the law, should shape it so that it aligns with the prevailing moral and social norms.