Gallery owners on strike to demand a VAT reduction: "It's an absolute disgrace."

BarcelonaIn a gallery anywhere in Spain, or at the ARCO art fair, a painting by Miquel Barceló can cost up to 16% more than in other parts of Europe. While in Spain the VAT applied to galleries is 21%, some countries adopted European Union Directive 2022/542 and reduced it to 5.5% (France), 5% (Italy), 7% (Germany), 6% (Belgium), and 6% (Portugal). Spanish gallery owners have been demanding a similar reduction ever since, but without success, and this Monday they began a week-long strike "in response to the paralysis and lack of action from the Spanish government." Ernest Urtasun promised in 2024 that he would lower this tax on art, but the measure never materialized. According to sources at the Consortium of Contemporary Art Galleries, some 200 galleries, almost all those in the country, are supporting the strike. The work stoppage not only means that the galleries will close their doors to the public, but also "a three-month cessation of all free collaboration with public and private institutions." This includes the loans of artworks that galleries often make to museums, taking charge of all the management and prior documentation related to the works' state of conservation. However, sources at the Ministry of Finance, which is responsible for the tax cut, explain that they are not considering modifying it because "it is not a priority." At the Ministry of Culture, on the other hand, they continue to express the same good intentions that Minister Ernest Urtasun has stated on several occasions. "We are aware of and share the sector's demands, with whom we maintain an open dialogue," ministry sources told ARA. "This situation puts them at a disadvantage in the market, and we believe it's a fair demand. That's why we've raised it with the Ministry of Finance on more than one occasion," the same sources indicate.

"I really don't think it's a question of numbers, but rather a lack of reflection on the cultural implications and on a European directive that, sooner or later, this country will have to transpose in one way or another," laments Idoia Fernández, president of the Consortium of Contemporary Art Galleries. "It's an absolute disregard. It's time for the Spanish government to restructure VAT funding and recognize that our contribution is strictly cultural," demands Benito Padilla, president of the Association of Art Galleries of Catalonia. "It's a matter of competitiveness," adds Quico Peinado, president of the Art Barcelona association. “It’s impossible to compete under the conditions of other countries,” he insists. “The 21% VAT could harm the ARCO art fair, which is extremely important for galleries throughout Spain, and also public collections, because if the VAT were, for example, 10%, the Reina Sofía Museum and the Catalan government would buy more works. It would be better to charge less and generate more business.”

An exception within culture

The 21% VAT rate for art galleries is an exception within the various cultural sectors: books have a super-reduced VAT rate of 4%, and tickets for theater, circus, concerts, and cinema are taxed at 10%. Bullfights also have a 10% VAT rate. In the art world, this percentage is maintained when the artist sells their work directly.

"The VAT reduction was chosen for all cultural activities, but not for art galleries. Why? Because we don't offer culture, or because this country doesn't need artists?" asks Fernández, who champions galleries as spaces that offer "permanently open and free cultural activity for everyone." “Either we protect culture or we don’t,” he adds. “To stop protecting an artist because they work with a gallery that supports and represents them is inconsistent. We can’t do without the cultural activity of galleries. It’s important for the country to be advanced in this respect, and it should be the government that defines it.”

Opponents of the VAT reduction for art galleries often justify their position by arguing that galleries are only for wealthy people and therefore don’t need this reduction. “That’s utter nonsense,” says Fernández. “Many people approach contemporary art, just like other cultural disciplines, with effort and dedication, and they dedicate time to it because they enjoy it. Many of these people try to buy something, sometimes with their own resources and sometimes with difficulty. There are all kinds of artists, all kinds of prices, and all kinds of works.” preppy"To do this in another field of culture would seem so stupid that we'd be ashamed." If the strike doesn't have the desired effect, Fernández assures that they are working on new actions that they will announce later. "The next edition of ARCO will be tough," predicts Peinado.