Sports event tickets subject to 5.5% VAT instead of the municipal entertainment tax
Article 21 of the 2015 Finance Act, resulting from a Government amendment, makes admission fees collected by sports event organisers subject to VAT at the reduced 5.5% rate and removes them from the municipal tax on shows, games and entertainment (8% rate, which municipalities could raise by 50%), which now applies only to gaming clubs and casinos. A deduction from State revenue compensates municipalities for the loss of this tax, based on its 2013 yield. It applies to receipts collected from 1 January 2015.
Measure originators
European origin
EUAvis motivé de la Commission européenne du 10 juillet 2014 estimant que l'exonération de TVA des billets d'entrée aux réunions sportives non soumises à l'impôt sur les spectacles méconnaissait la directive TVA.
No official estimate found for this measure.
Measure impact
According to the Senate general report, the direct loss of about €20m for municipalities is compensated by the State; the gain for the State would be negligible because VAT is deductible and because of the compensation. Clubs, now liable for VAT, no longer pay payroll tax (about €15m for social security). Compensation rules were set by Decree No. 2015-1550 of 27 November 2015.
Official references
Sources
Procedure timeline
Follow the progress of this fiscal measure through the different stages of the parliamentary procedure.
Administrative implementation
Entrée en vigueur de la mesure et mise en œuvre par l'administration
Possible referral to Constitutional Council
Décision de conformité / censure partielle
President of the Republic signature
Publication au Journal officiel
Joint committee
DĂ©saccord Ă©ventuel
Debate and vote
Débat et vote en séance publique à l'Assemblée nationale, ou engagement de la responsabilité du Gouvernement (article 49.3)
Council of Ministers
Validation interne