Gallery owners, artists and collectors alike will still be positively buzzing with news that Spain has reduced the VAT (IVA) on direct art purchases from the controversial 21% down to 10% at the end of January.
With an aim to stimulate the cultural industry, defend Spanish art from a shaky economy, and edge closer to their European peers, the timing was conveniently placed just as ARCO, Spain’s most important contemporary art fair, opened its doors mid February.
2013 saw a 62% decrease in contemporary art revenues from 2012, so the recovery is crucial for artists. Industry insiders await the reduction to be applied to sales from galleries where the 21% VAT is still applicable if they sell from their collections as opposed to acting as agents or middlemen for artists.
Further decreases in culture VAT are rumoured and strongly urged especially by the film industry who bear a 30% VAT but for the moment, the physical art industry has been given the boost.
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It’s news like this – a reduction on non-essential, luxury items like Art (What next? Jewelery?!?]) – that utterly disgusts me, and if this is a decision representative of Partido Popular’s leadership, and I think it is, it makes me want to pack my bags and leave Spain. Austerity for whom, hah….
Policy like this is nothing but an absolute moral and financial insult to the vast numbers who pay 21% tax on essential goods and services. Rajoy? Move on!
Spain has reduced the VAT (IVA) on direct art purchases from 21% down to 10%, which affects just a very small group of people here in Spain.
I can’t understand why the Spanish government has not reduced the VAT on Cultural events.
Although cultural services such as museums, libraries, seminars and conferences are exempt from IVA, tickets for theatres, cinema, circuses and other spectacles are subject to the general rate of 21%.
Meanwhile sporting events, such as football games, which generate millions of Euros, are subject to the reduced rate ( 10% )!!!!!!!
And for a porn magazine you pay just 4% of VAT in Spain !!
That’s what I can’t understand.
I think that the Spanish government should think about these facts if they would really like to increase culture in Spain.