Vienna Kills Amusement Tax

Most income generated by the amusement tax traditionally came from the gambling business. Clubs were forced to pay it because people dance in them. Concert organizers did not have to pay the tax, which sparked controversy. When Parov Stelar played Vienna in 2011, it became apparent how blurry the lines between a concert and a dance event can get. People danced, as they tend to do at concerts, which prompted the city to demand back payments of euro 10,000 from the artist, Der Standard reported.

In 2014, Vienna earned euro 52.2 million in amusement taxes. The city banned small gambling, which mainly encompasses slot machines, the year after, which led to a stark decline in amusement tax revenues.

In 2015, the tax contributed only euro 7.9 million to the city’s income, 5.6 million of which was generated by dance events.

That sum apparently doesn’t justify the administrative burden. The amusement tax in Austria is the responsibility of the municipalities. It remains to be seen if others will follow Vienna’s example.

The news comes shortly after Berghain in neighboring Berlin, Germany, got classified as a cultural hub. It now will pay the reduced VAT of 7 percent, which applies only to culturally valuable events, as opposed to 19 percent for mere entertainment events.