March 9th, 2021
Towards an equal treatment of physical and online performances for low VAT rates
Position Paper
In relation to the proposal for a Council Directive amending Directive 2006/112/EC as regards rates of VAT and the current Council discussions, Pearle* calls for an equal treatment of physical and online performance on low (or exempt) VAT rates.

There are clear arguments for an equal treatment of physical and online performances in the frame of Council Directive 2006/112/EC as regards rates of VAT. Those are based on :

  • the type of the organisations and companies, which are SMEs, often with a non-profit legal status, given the similarity between an online and physical performance,
  • the role of culture and access to all people in society,
  • the minimal risk of distortion of the market,
  • the potential administrative burdens,
  • the high labour-intensity of the sector,
  • the strong need for support towards the recovery of the sector

The paper calls upon the Council to take those arguments into consideration in the ongoing discussion on the VAT rates.

 

As a general principle, Pearle* underlines the need to maintain the option for Member States to apply low VAT rates (or exemption) for culture.

Read the full document here.

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