The low rate of 6% value added tax (VAT) for visual and performing arts is to be ended as of January 1, 2011 and raised to 19%. Until this date the VAT rate remains 6%. The VAT raise is meant for the sale of art, performances by musicians, actors and comedians, for lectures and for ticket sales or admission fees for performances. The new rate of 19% VAT is also meant for the billing of rehearsels.
If the (advanced) delivery of art is done before December 31, 2010 the old VAT rate of 6% can be applied. For institutions and individuals that are exempted from VAT this means they can save 13%.
After January 1, 2011 the most important financial consequence for performances by artists is that the fee for a performance must be raised with 13%. For institutions and individuals that are exempted from VAT this means a substantial increase of prices.
There is a transitional rule that makes it possible to apply 6% VAT after January 1, 2011. To make use of this rule, the performance must be billed and payed before January 1, 2011. The main condition is that there must be a binding contract made between artist and the instructing party.