Danish TV operator Norlys has warned the introduction of VAT to rights payments could ultimately affect Danish TV production.
From 1 July, prices for Norlys’ TV customers will rise by up to 20 kroner per month after royalties were brought within the remit of VAT, including those paid to artists and producers.
“We’ve been very clear in warning against removing the VAT exemption, as it will lead more people to opt out of TV packages, and that means, among other things, less funding for Danish-produced TV content. The decision has now been made, and we have no other choice but to pass the VAT cost on to our customers,” says Jakob Steen, Director of Norlys’ Private Customer Business.
Norlys, along with many other affected parties, has fought to prevent VAT from being applied to artist royalties in connection with the sale of TV packages.
Despite the protests, a majority in the Danish Parliament – consisting of the government, the Socialist People’s Party (SF), and the Social Liberal Party (Radikale Venstre) – passed an amendment to the VAT law, meaning that royalties paid to artists via organisations like Copydan and Koda will now be subject to VAT.
Norlys insists the price increases for its TV packages go solely toward covering the increased costs associated with royalty payments.
