Under that law, a performing artist does not pay VAT. Government Bill to Parliament in the VAT Act

Recently, there has been public discussion of the artists appearing gig commissions VAT treatment. At least some of the artists hopes that the gig fees VAT exemption is phased out. In this context, touring artist has to mean the actual business that powers the artist, rather than a hobby by a subsidiary, the musician. I heard this debate for the first time about a year ago. I remember marveling at the matter, usually a VAT liability is perceived as a burden on business. Related news and reading the topic addressed anyway, I began to understand the artists' position in this matter.
Under that law, a performing artist does not pay VAT. Government Bill to Parliament in the VAT Act this line is justified mainly ace for administrative reasons. In the background there is also the idea that the occurrence of the artist's activity ace is not often have the business and operations of the compensation received by equating salary. That is how things are probably 90 have done that in the beginning of the VAT Act has been drafted. I understand this is not, however, reflect the current situation. Since the amendment of legislation is understandably slow kind of process, I consider it important matter that artists as one of the professional group have left a wakeup call for lawmakers to change ace the law and the need to be upgraded to meet the realities of today.
The current status of the artist does not pay VAT received gig fee, but also can not reduce the performance at the acquired goods and services contained in the purchase price of value added tax. As the gig of the premium is not paid VAT, does not it against ace VAT on purchases can not be reduced. Such non-deductible purchases increase in the number of artists, the cause of the fact that the gig fees may need to be increased.
I am thinking about that, whether the gig fees to VAT actually be profitable from the perspective of artists. Yes you can. At least when the artist gig fees contained in the value-added tax would be lower than the input VAT, which is why deductibility remains now artist as an extra expense. In this case, charge brought about by the "bad" would be more deductibility will entail adverse effect ace on the lower. Artists could benefit gig commissions liability to VAT even if the gig fees apply a reduced rate (10%). Consequently, the artist supplies value-added sales tax could be higher, when the monetary benefits could accrue VAT refund in time. On the other hand, if the reduced rate does not apply to the gig fees, tangible benefits would arise even if the artist made purchases exceed sales volume. However, this will mean loss-making activities. If the scope of VAT decided to expand, will also take into account the possible increase ace in the risks related to the VAT register to abuse.
Jannika Wirtanen discusses in his blog "Artist Pays" (11.12.2013, ace www.teosto.fi/teosto/blogi/artisti-maksaa) gig commissions VAT liability and raises good points gig fees on behalf of its subjection to VAT. One factor he mentions that the VAT Law, effective in 1994, corresponding ace to non-profit associations for most of the dance pallets activities. Operations of a general interest, these associations are not generally been taxable persons, so the gig fees to VAT would have been for them a direct additional cost.
Jannika Wirtanen speaks in his blog the full thing. Välttyäkseni ace excessive veropaatokselta, I decided to call and ask Jannik his opinions gig commissions VAT treatment. He is familiar with the subject, both professionally than training alone, because ace he is an artist and completed in the upper Applied Sciences MBA degree. Juteltaessa ace on the phone and I was sifting through his thesis of "The effect of Implementing the value added tax is live music in Finland" Jannika to emphasize that, in theory, there is no fully exempt from VAT activities, unless the entire production chain is not exempt from VAT. In addition, Jannika strongly believes that the gig fees to VAT is passed on the opportunity to indirectly sold by the organizer to the ticket price, but a career in creative artists could even sell more and more gigs and cheaper without having to haggle still too much activity results. The thesis is also the calculations that support Jannik ace argument.
VAT Act veronkertaantuminen efforts have been made to prevent the right to deduct the taxable business on purchases VAT. In order to veronkertaantumista no were to happen, it would require the widest possible scope of VAT. In public debate ace in by businesses liable for VAT