A Norwegian appeal court ruling has declared that striptease is an art and should therefore be exempt from value-added tax (VAT).

Three judges ruled unanimously that "striptease, in the way it is practiced in this case, is a form of dance combined with acting." It was compared to other stage acts that enjoy VAT exemption in Norway.

The decision upheld a May 2005 ruling of a district court favoring Den Blue Engel (The Blue Angel), the firm that runs the Diamond Go Go Bar in Oslo. The establishment had refused to pay the 25 percent tax on entry fees demanded by Norwegian tax authorities.

Attorneys for the club, contend that other stage performances, like sword swallowers and a comic making jokes, were not meted VAT.

The Diamond Go Go Bar's striptease shows were not in bad taste and were done by professional dancers, said lawyers for the Blue Angel.

The court ruled that Norwegian authorities should compensate the Blue Angel for its legal costs amounting to around $26,216 dollars.