The increase in VAT by the Spanish Government has suffocated the performing arts sector: Gravity is given by an article written by Norka Chiapusso in Artez magazine. According to Chiapusso, on 21 March FAETEDA (Spanish State Federation of Theatre and Dance Associations) presented a report on the impact of the tax:
– 1,798,394 viewers were lost in one year (31.43% less).
– 600 jobs have been lost.
– Business revenues have fallen by 32.98%.
– And the increase in VAT has not meant more money for the state. Tax revenue (VAT, IRPF and Corporate Tax) has been reduced by EUR 2,978,151 compared to the same period last year.
Chiapusso said that the rise in VAT from the Spanish Government to theatres in September 2012 had "three perverse effects", from 8 to 21%.
1) The purchasing power of the population has been reduced, so that less can be spent on theatres.
2) The costs of theatres have increased: “Everything is more expensive, so caches rise and direct and indirect costs become more expensive, so hiring falls back or falls down.” 3) There is also not much to do with the public there, as one third of what they pay goes to the tax bag and to the
authors' expenses. “For example, if a theater raises 10,000 euros in a session, it should know that it will have a net profit of 6,500 euros. One part is for the company and the other part is for the theater. (...) If a theatre group has 12 people, it must take care of the corresponding part of 12 trips, 12 stays (minimum of 2 days), diets, salaries, IRPF, transport of scenographies and materials, promotion and long list of expenses”
There will be those who say, and it will be right, that there are other models to do things, that you can make a theater more economically sustainable, small groups, small rooms, small tours... But it is also true that Spain is the only one with such high VAT on theatres: In Germany 7%, in France (and thus in the French Basque Country) 2.1%, in Switzerland 2.5% and in Norway 0% (yes, zero).
“Ah, but those are Europe,” says someone with very internalized PIIGS awareness. In Portugal, theatre tickets have a VAT of 13%. It was a disgrace to the Spaniards and non-Spaniards, who believed that they were at least more civilised, more educated and richer than the Lusitans.
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