Personal Statement on the Proposed VAT Increases Impacting Arts & Culture in the Netherlands
On Tuesday, September 19th, the Dutch government presented its financial plans for 2025, which threaten to have devastating consequences for the arts and culture sector. As the Founder and CEO of Lanced, a Dutch tech startup dedicated to serving the arts and culture sector, I must express my deep concern over the proposed increase in VAT which put the future of our sector, and by extension, our society, at serious risk.
These new measures represent a significant financial burden on something far more valuable than money: our society’s well-being, creativity, and mental health. Increasing the VAT from 9% to 21% will act as a "hidden tax" on the precious free time, curiosity, and personal growth that arts, sports, and culture provide. Whether it’s attending a concert or theater performance, reading a book, visiting a museum, or participating in a sports activity, these experiences are not just leisure; they are integral to our physical, emotional, and intellectual health.
The expected impacts are alarming. Recent sector analyses, by Cultuurfonds and Kunsten '92, predict that the VAT increase alone will result in a drop of €90 to €110 million in public revenue. The government miscalculates the VAT increase's impact as they leave out the already increased ticket prices due to inflation and rising personnel costs. Combined with the VAT increase, it’ll lead to a 9-12% drop in public revenue, not the projected 5-6%. Yet, State Secretary Idsinga (Finance) is unwilling to research this impact.
Cultural institutions, especially smaller and regional ones, will struggle to survive, leading to a significant reduction in programming and opportunities for new talent. The accessibility of culture will diminish, and the burden will fall hardest on those with the least disposable income, further widening social and regional inequalities.
This decision threatens the livelihood of tens of thousands of professionals in the arts and culture sector. Artists, performers, and makers who already struggle to earn a fair income will be hit even harder, with reduced audience revenue and increased costs making it almost impossible for them to sustain their work. The arts, which contribute €5.5 billion to our GDP and provide 392,000 jobs, will be forced into retreat.
We must not underestimate the broader impact of these measures. The government’s plans will not just weaken a thriving industry but will strip away the vital role that arts and culture play in connecting people, fostering critical thinking, and preserving our shared history and identity. Culture enriches our lives, promotes empathy, and is essential for a healthy, informed, and engaged society. By making it less accessible, we risk impoverishing not just the sector but our society as a whole.
I endorse the efforts of all organizations fighting against the VAT increases and call on the coalition to delay these actions and reassess their consequences. These proposals are short-sighted, and their long-term damage to both the economy and society far outweighs the short-term financial gain.
Let’s invest in the future of arts and culture, not dismantle it. #GeenHogereBTW
Wouter Vertogen,
CEO & Co-Founder Lanced