The Fallas world is in luck. The government has approved the reduction of 21 to 10 % VAT. From now Fallas are taxed with reduced VAT as it is considered "art ".
The negotiations that have lasted several months between the Government of the Generalitat and the Ministry of Finance has finally yielded in benefit of Valencian fiestas . However, it not be applicable to Fallas this year.
In fact of having adopted the new tax on time, the Fallas artists could have saved 614,795 euros in costs.
However, Councillor of festivities, Francisco Lledo highlights the importance that although this year has not seen benefits of this measure, It will profit in 2015's contracts. Meanwhile the mayor of Valencia, Rita Barbera asserts that the measure "aims to protect the tourism and service sector, which is so important in our city and community activity." Likewise, the Mayor of Alicante , Sonia Castedo is satisfied that "the new VAT is a fair claim from the party's world and the City Council ."
Besides the Fallas , the reduced VAT will also apply to the festivities of the Bonfires of Alicante and Gaiatas from Castellon.
VAT reduction on Fallas is associated to a general measure on culture