Universe Spain, the latest localised version of the TM-owned self-service ticketing platform, is set to debut later this year
Sign up for IQ Index
The latest industry news to your inbox.
The cut in VAT for live shows, long campaigned for by the Spanish concert business, will be introduced in the 2017 budget, confirms culture minister Íñigo Méndez de Vigo
By Jon Chapple on 24 Mar 2017
In a move that will come as a relief to the Spanish live music industry, Spain’s minister for education, culture and sport, Íñigo Méndez de Vigo, has announced a cut in the rate of cultural value-added tax (VAT) to 10%.
The reduction confirms a manifesto promise by prime minister Mariano Rajoy’s People’s Party, which last September pledged to reduce VAT for live entertainment, or “cultural shows” (espectáculos culturales).
Cultural-sector VAT has stood at a record 21% since September 2012, when Rajoy increased the tax, which previously stood at 8%, in an effort to plug a hole in Spain’s public finances. The tax hike has been catastrophic for the Spanish live industry: revenue from ticket sales fell 27.5% between 1 September 2012 and summer 2013 alone, and the country’s live music industry only recently recovered to its pre-2011 levels last February.
The new rate of cultural VAT will be 10%, Méndez de Vigo (pictured) confirmed in an interview with morning TV programme Los Desayunos de TVE.
The Canary Islands, an autonomous community of Spain off the coast of Morocco, in November cut cultural VAT to 3% from 7%. Then-president of the Association of Spanish Promoters (APM) Pascual Egea said it demonstrated the Canarian government “understands the importance of culture”.
Get more stories like this in your inbox by signing up for IQ Index, IQ’s free email digest of essential live music industry news.