SPAIN NIGHTCLUBS BEG LESS TAX

Spanish Nightclubs Appeal Tourism Minister Mediate with Treasury for Tourist Tax

National nighttime industry association "Spain Nightlife" asked in a letter sent to the recently appointed Secretary of State for Tourism - Matilde Asián - to negotiate with “Hacienda” (The Treasury) and to include nightclubs as an activity only subject to tourist tax

Request made to new Secretary of State for Tourism because since 2012 Tax applied to nightclubs and similar businesses is 21%. Tourism Tax for bars, hotels and restaurants is only 10% which Spain Nightlife considers discrimination.

One of the obvious reasons, given by Spain Nightlife in their letter, is the country mainly depends on tourism. Claiming the nightlife sector forms a major part of the tourism industry - 33% to be precise - according to a recent study carried out by the International Nightlife Association (affiliate of United Nations World Tourism Organization). This means one in three tourists who visit Spain decide their destination based on what nightlife offers there. 

“It’s extremely important to take care of this business sector, otherwise we may weaken and become less competitive compared to other countries and destinations, and then Spain might lose its powerful tourist attraction” - Joaquim Boadas 

Spain Nightlife argued in their petition, the nightlife sector must be included with the tourism sector and therefore should only be applied tourist VAT like other similar tourist activities.

They also highlighted the nightlife sector is one of the economic sectors with most employees, generally Summer and Christmas periods, coinciding with traditional hospitality activities.

"They shouldn’t penalize a sector with excessive taxes just for playing music!"

They consider this appropriate and have requested Asián: nightclub entrance fees (if a cover charge is collected) be taxed at 21%, but drink sales should only be taxed at 10%, that is, at the same tax rate as bars, hotels and restaurants.

Finally, the association emphasized in their letter the excessive increase in VAT has had a direct impact on the loss of customers and tourists, and on the rise of prices in nightclubs. Serious economic crisis, an increase in prices has increased the practice of “Botellón” (illegal public drinking), with all the usual negative consequences associated, which includes annoying local residents due to the noise, incitement to underage drinking and public disorder offences on the streets.

They also congratulated the new Secretary of State for Tourism, Matilde Asián, asking her to negotiate with “Hacienda” in order to end this incoherence, reincorporating the nightlife sub-sector to the Spanish hospitality industry sector. Nightclubs should return to the CNAE classification of “Hostelería" (Hospitality) Industry [5630 - Establecimientos de bebidas] and leave the cultural establishment class [9329 - Otras actividades recreativas y de entretenimiento] which nowadays seems more logical.

Do you go to nightclubs for drinks or for entertainment?

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