IQ MAG: Italian Promoters welcome Concert VAT cut!

 In Elmnet News

The reduction in VAT paid by “intermediaries” working in live music has been praised by promoters’ association Assomusica as bringing Italy’s tax code “up to date”

Italian promoters’ association Assomusica has welcomed a reduction in VAT on concert professionals to 10%, saying the move, enshrined in Italy’s 2018 budget law, recognises the “new reality” of the modern, production-heavy live music business.

“We welcome this measure, which we have expected since 2007, absolutely,” comments Assomusica president Vincenzo Spera. “We worked with parliamentarians and ministers to come to this conclusion [and] thank the government for adopting this law, and all those who have worked for us.”

The budget law extends the favourable reduced rate of value-added tax (VAT) currently enjoyed by concerts and other live entertainment to “related services provided by intermediaries”, such as production and suppliers.

“MANY YEARS AGO, LIVE ENTERTAINMENT WAS DIFFERENT TO WHAT WE HAVE TODAY”

“Many years ago, live entertainment was different to what we have today,” continues Spera (pictured).IQ MAGAZINE: ITALIAN PROMOTERS WELCOME CONCERT VAT CUT

“In the past there was a singer in a theatre, where there was already an artistic director and stage design. Today is different: today, concerts are performances that travel all over, with lighting, production designers, directors, sound engineers, everything that comes with the artist.

“It was necessary to bring the discourse up to date and to align VAT with live performance as a whole.”

VAT in Italy is currently charged at 22%.

The tax cut in Italy follows a similar developments in Spain, where VAT on live entertainment has recently been reduced to 10%, down from 21%.

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