Dutch sector ‘faces €350m loss’ over tax hike
The Netherlands’ creative sector faces a “disastrous” annual loss of €350 million in income as a result of the government’s cultural policy, it has been claimed
Trade body Kunsten ’92 says the government’s plan to raise the tax rate for the cultural and creative market by 12 percentage points from 2026 – in addition to reductions in municipal and government subsidies – will have a “negative domino effect” on the Dutch industry.
The warning follows analysis commissioned by private financiers, municipalities and the arts and culture industry, including Kunsten ’92 and the Culture Fund.
“The uncoordinated pile of cutbacks and measures has an enormous impact on the entire arts and culture sector, both in the short and long term,” says Culture Fund director Cathelijne Broers. “For the first time, the data from this consortium has been combined and analysed and it shows that the entire arts and culture sector is being affected with a loss of €350 million per year in income. This is due to the decrease in audience, less subsidy and less private income.”
Under proposals from the country’s new right-wing government, the VAT rate for concert, festival, sports and museum tickets, in addition to books, hotels and newspapers, would increase from 9% to 21%. The government says the increase will generate €2.2bn a year for the treasury, but campaigners say it will add more than 10% to the price of tickets.
“The VAT measure costs the sector more than it brings in for the state treasury”
“The VAT measure costs the sector more than it brings in for the state treasury,” continues Broers. “The miscalculation is that the price elasticity of the VAT increase does not include the increase in the prices of entrance tickets due to the rising costs for personnel, materials and energy. The assumption is 5-6% less public revenue, but that is more like 9-12%.”
Together with the creative industry, the Dutch arts and culture sector is provides work for 392,000 people. The consortium is urgently requesting a postponement of the VAT increase to enable a “thorough investigation” of the actual revenues and consequences for the business.
“The arts and culture sector just experienced the ‘perfect storm’: the corona pandemic, energy crisis and cost increases dealt heavy blows to makers and organisations,” adds Jeroen Bartelse, co-chair of Kunsten ’92. “This analysis shows that the accumulation of measures will hit the sector amidships again. Taken together, these measures have a greater financial impact than the draconian cuts of the Rutte I cabinet in the period 2010-2012.”
On 3 June, a full-page advert appeared in every national and regional newspaper with the message #nohigherebtw (nohigherVAT) on behalf of a coalition of organisations in the Netherlands including the Association of Dutch Music Venues and Festivals’ (VNPF), as well as other groups across culture, media, catering, books and sports.
The VNPF has previously called on the authorities to reconsider the tax hike, warning it could have grave consequences for the domestic live music business.
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Campaign launched against Dutch ticket tax hike
A coalition of organisations in the Netherlands have launched a joint campaign against the government’s plans to raise the tax rate for the cultural and creative sector from 9% to 21%.
A full-page advert appeared in every national and regional newspaper today (3 June) with the message #nohigherebtw (nohigherVAT) on behalf of the alliance, which includes the Association of Dutch Music Venues and Festivals’ (VNPF), as well as other groups across culture, media, catering, books and sports.
It follows proposals unveiled by the country’s new right-wing government to increase the VAT rate for concert, festival, sports and museum tickets, as well as books, hotels and newspapers, by 12 percentage points from 2026. The sector contributes €26 billion (3.4%) annually to the Netherlands’ GDP and accounts for almost one in 20 jobs in the Netherlands.
A statement from the coalition reads: “The proposed increase in the VAT rate will inevitably lead to higher prices, which will put pressure on the accessibility and affordability of sports, media, books, culture and catering for the public. It affects everyone in the Netherlands in daily life and in several areas. It is an additional burden on the valuable free time, club life, curiosity and (mental) health of every Dutch person.”
The government says the increase will generate €2.2bn a year for the treasury, but campaigners say it will add 11% to the price of tickets. According to Dutch News, the measure is also the least popular of all the plans unveiled by the new coalition, with just over half of those polled opposed to the move and only 28% supporting it.
A total of 96% of respondents to a poll conducted by trade bodies Arts ’92 and The Creative Coalition said ticket prices will have to increase if the lower VAT rate is abolished, while research by economist René Goudriaan suggested the subsequent drop in visitors would most severely impact festivals (1.5 million fewer annual visits), resulting in €62.5 million less income.
“This increase in tax burden affects everyone: readers, festivalgoers, museum visitors, artists, musical fans, people who sing in choirs and play in brass bands,” says Arts ’92 director Astrid Weij. “In this way, what gives life colour and meaning takes a hit. The economy behind the creative sector is going to shrink. The effects on our prosperity, well-being and employment are negative.”
“The VAT increase is a serious setback for self-employed people and employees. Many fear forced layoffs”
“The proposed VAT increase is a blow to self-employed people and employees in the sector,” adds Thomas Drissen, director of The Creative Coalition. “It puts further pressure on the income of the makers. Many have not yet recovered from the corona years, when there was actually a professional ban. The VAT increase is a serious setback for self-employed people and employees. Many fear forced layoffs.”
Dutch live music association the VNPF has previously called on the authorities to reconsider the tax hike, warning it could have grave consequences for the domestic live music business.
“This measure makes ticket sales uncertain, leading to less investment in a sector that has already been hit disproportionately hard in recent years,” it said. “The jobs of more than 100,000 people working in this industry are also threatened.
“In addition, this VAT increase weakens the competitive position of the Dutch live music sector compared to neighbouring countries where low rates are still charged. Stages and festivals lose their offer to neighbouring countries, with all the financial consequences that entails. This policy puts the Dutch world-leading live sector at a great disadvantage.”
It continued: “Pop culture in the Netherlands is becoming less accessible, causing a broad audience to be excluded from cultural events. This makes the Netherlands less attractive for international artists, which has a negative impact on the business climate in this industry.
“The consequences extend beyond just the visitors – up-and-coming pop talent will find it even more difficult to break through and generate a sustainable income.”
Other groups to have signed up to the coalition include Dutch football association KNVB, the country’s top professional football league the Eredivisie, the Association of Theater and Concert Hall Directors (VSCD), Association of Event Makers (VVEM), the Alliance of Event Builders, the Association of Dutch Orchestras (VvNO), the Creative Industry Federation, the Culture Federation, the Pop Coalition and the Dutch Association of Journalists (NVJ).
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Dutch groups hit out at live music VAT rate hike
The Association of Dutch Music Venues and Festivals’ (VNPF) is calling on the government to reconsider its plans to raise the VAT rate for concert and festival tickets by 12 percentage points.
The increase from 9% to 21%, which is set to come into effect from 2026, was announced this week in the new coalition agreement between the PVV, VVD, NSC and BBB parties.
But the national live music trade body is warning the move could have dire consequences for the domestic business, and is appealing for talks with the powers that be.
“This measure makes ticket sales uncertain, leading to less investment in a sector that has already been hit disproportionately hard in recent years,” it says. “The jobs of more than 100,000 people working in this industry are also threatened.
“In addition, this VAT increase weakens the competitive position of the Dutch live music sector compared to neighbouring countries where low rates are still charged. Stages and festivals lose their offer to neighbouring countries, with all the financial consequences that entails. This policy puts the Dutch world-leading live sector at a great disadvantage.”
Stressing that a healthy cultural sector is “essential” for the country’s economy, the VNPF says the impact on the tax hike would be felt on and off the stage.
“The consequences extend beyond just the visitors – up-and-coming pop talent will find it even more difficult to break through and generate a sustainable income”
“Pop culture in the Netherlands is becoming less accessible, causing a broad audience to be excluded from cultural events,” it continues. “This makes the Netherlands less attractive for international artists, which has a negative impact on the business climate in this industry.
“The consequences extend beyond just the visitors – up-and-coming pop talent will find it even more difficult to break through and generate a sustainable income.”
The Association of Event Makers (VVEM) has also shared its “major concerns” at the proposal.
“This increase is bad news for consumers,” says the group. “A decision like this also has far-reaching consequences for Dutch artists, who see the gap with their audience growing, but also for entrepreneurs in the events industry.”
A four-party coalition deal was provisionally struck this week to form a right-wing government, almost six months after PVV leader Geert Wilders won the Dutch election.
“The VVEM suspects that the new government has not realised that a measure like this will hit ordinary Dutch people who like to go to events hard,” it adds. “The flywheel effect is that the business climate in the industry is also hit hard. We would like to enter into discussions with a new government to convince them not to take this measure.”
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