We’re concerned. With the announced VAT hike from 9% to 21% on cultural activities, combined with inadequate public funding, the cultural sector is once again being financially squeezed and weakened. Yet culture, in all its forms, is vital to a thriving society, and thus to a prosperous Netherlands.
The Culture Fund’s impact report reveals that the arts and culture sector contributes €5.5 billion annually to the GDP (gross domestic product). Over the period 2018-2022, this amounted to a total of €26.4 billion, representing 3.4% of the total Dutch economy in 2022. Additionally, the sector provides significant employment, with 392,000 full-time jobs (FTEs). Beyond its economic value, the social, educational, and health benefits that culture provides to Dutch society are at risk if the VAT increase goes ahead.
Culture fosters social cohesion
Beyond the hard numbers, creativity, arts, and culture are fundamental to us as a society. Cultural events bring us together, giving artists a platform to tell stories and create works that help us see the world – and each other – in new ways. At a time when divisions and tensions are high, culture plays a crucial role in building social cohesion, and we should recognise it as such.
“We are deeply concerned about the VAT increase. At Oerol, we consciously embrace a diversity of voices and strive to be accessible to an ever-growing group of people. We see it as our duty to bridge the perceived gap: between the big cities of the West and the provinces, between generations, and between people with different socio-cultural backgrounds, financial situations, gender, and health. Additional financial barriers will make the cultural sector less accessible. While we work hard to remove barriers in many ways, the VAT increase could create a ‘paywall.’ This is not good for the growth and long-term sustainability of the cultural sector and its audience.”
– Mikey Martins, Director, Oerol Festival
Long-term funding
This summer, the long-term national public funding for the 2025-2028 period was allocated. Due to insufficient funding, we see fellow companies, colleague festivals, and cultural organisations struggling with their viability or disappearing altogether. We call on the government to continue supporting the mid-tier creators, who have been investing in new art forms and audiences for years. This includes our colleagues, who play a vital role in the cultural infrastructure, employment, and the Dutch economy. At the same time, it is important to allow for change, and we are eager to see the new companies and organisations that will be subsidised for four years from 2025. We are glad you are here and curious to hear your stories, ideas, and plans.
A call to culture lovers
To everyone who cares about the cultural sector – our Pioneers, Friends, visitors, and partners – let’s come together and take action. Sign petitions, write to politicians, join campaigns, support creators, festivals, and organisations. Help us champion the value of culture for all, and stop cultural experiences from becoming inaccessible to an ever-growing number of people.
Below, you’ll find a list of articles, background information, and actions related to the VAT increase and insufficient public funding:
- Culture Fund Impact Report 2024 (in Dutch)
- Monster Coalition stuns with protest against VAT increase during the Royal Procession (in Dutch)
- Consequences of abolishing the reduced VAT rate (in Dutch)
- 59 threatened institutions: ‘With €10.9 million, we can all continue our work’ (in Dutch)
- Half a century of VAT disputes (in Dutch)
- No Higher VAT (in Dutch)
