Adesp and the Royal Spanish Golf Federation present a report stating that lowering the sports VAT from 21% to 10% would not reduce revenue. The sector seeks political support in the coming days.
The Spanish Sports Association (Adesp) and the Royal Spanish Golf Federation (RFEG) have presented a proposal for services related to sports practice to return to a reduced VAT of 10% instead of the current 21%, as reported by Infobae. The initiative was announced at a press conference held at the Real Club de Campo Villa de Madrid, coinciding with the Spanish Open golf tournament.
The VAT on sports services increased from 8% to 21% in September 2012 as a measure to boost public revenue during the economic crisis. The proponents of the proposal argue that a reduction would not decrease final revenue, as the initial drop in income would be offset by increased demand and tourism, job creation, and reduced healthcare costs.
“We need to claim who we are. Culture has managed to achieve a reduced VAT. Why a cultural cheque and not a sports one?” asked José Hidalgo, president of Adesp.
Hidalgo announced that he will meet with representatives of political parties in the coming days to present the proposal and other demands from the sector, such as a sports sponsorship law similar to the cultural patronage law.
Also participating in the event were the president of the RFEG, Juan Guerrero-Burgos; the president of the Spanish Association of Golf Courses, Luis Nigorra, and the author of the report, Alberto García Varela, from EY Abogados.
“We are not asking for an exception for golf. We use golf data to demonstrate what a favourable tax policy for sports practice can do for the entire economy,” argued Nigorra.
The proponents of the initiative point out that many European countries apply a reduced VAT to sports practice, such as Sweden and Belgium (6%), Ireland (9%), or the Netherlands (10%).
The meetings with parliamentary groups that Adesp will hold in the coming days will mark the next step for the proposal, which does not yet have a legislative timetable.
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