MADRID: The Spanish Government has confirmed that value-added tax on cultural activities will be cut, in an attempt to revive the country’s live entertainment industry.
In September 2012, the VAT rate on supplies of cultural goods and services was increased from eight percent to the standard rate of 21 percent as part of the Government’s austerity measures. However, the Government announced last month that cultural VAT would be cut to the reduced rate of 10 percent in the 2017 Budget, which was submitted to parliament following Cabinet approval on March 31.
The move follows a slump in ticket sales for live events, having fallen by more than 25 percent in the year after cultural goods and services were standard-rated.
