Different criteria for VAT collection to shows.
Since that July 1, movie tickets pay 12% Value Added Tax (VAT), a rate that did not exist for this activity. In the city of Loja, show organizers are also concerned about the cancellation of revenue in artistic events.
The Organic Law for the Strengthening of the Family Economy or Tax Reform determines that all public shows are taxed with VAT, this includes movies, soccer matches and massive concerts.
Event attendees would have to pay VAT when purchasing the ticket. Professionals and organizers of massive events, in dialogue with Diario Crónica, agreed when mentioning that the current measures will have repercussions.
The president of the National Union of Colleges of Accountants of Ecuador, José Almeida Sánchez, specified that this will have an impact on the organizers of shows and, mainly, on the lower social strata, who will stop attending.
Incidence
He specified that, for example, last weekend, “citizens felt the collection of 12% VAT when entering the cinema.”
Almeida Sánchez added: “the National Government must look for alternatives; however, the greatest incidence will be for the owners of the shows, ”he pointed out.
Panorama
Francisco Ramírez Carchi, a member of the Star Shows company, added that the VAT tax on public shows, “a measure adopted by the Government, is a blow to culture and industry. It is not good news, neither for the public nor for the organizing companies”.
Situation
He added that, in his case, they perform concerts in different provinces of the country, including Loja. “In each event we already pay taxes, a rent on international artistic contracts, a tax of 5% to 8% to SAYCE. And, in Loja, 3% is paid to the Municipality”.
In his opinion, the businessman already cancels several taxes, “it is a setback to culture, because they worked with zero VAT, which encouraged the user to attend the shows.” (YO)
GIVEN
The Government seeks to raise USD 10 million with the collection of 12% Value Added Tax (VAT) to public shows.
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