How much the state earned: Sea Dance fills the budget best

All major festivals in Montenegro duly settled their tax obligations for last year and during their duration, almost no irregularities were noticed in their work, the result of research by "Vijesti" in contact with the Tax Administration on how much the state earned from popular music events.

As expected, the largest amount was paid by the largest festival - Sea Dance. According to the announcement of the Tax Administration, their officers were present during all three days of last year's edition of this festival, during which turnover from the sale of tickets, as well as catering and the sale of accompanying festival products (badges, T-shirts, etc.) was registered in the amount of over one million euros. on which value added tax was reported and paid at the rate of 19 percent in the total amount of 80 thousand euros. Also, on the basis of the contract on the engagement of music performers, tax and surcharge in the amount of 15 thousand euros, as well as value added tax in the amount of six thousand euros, were paid. The PU states that a cashless payment system was used at the Sea Dance, which made it possible to reduce the administrative burden for the organizer and visitors, as well as to accurately record the realized traffic, and therefore to report the resulting tax obligations.

Unlike the Sea Dance festival, the Tax Administration did not provide "Vijesta" with the exact figures of how much tax some other festivals paid, but only the amount of registered traffic.

It is only known that the second largest festival in the country, Lake Fest, spent 46.500 euros last year on 23 contractors on the basis of a work contract, and the corresponding tax and surcharge were calculated on that figure, according to the announcement of the Tax Administration.

The organizers of the festival in Krupac often point out that they live off the sale of tickets, from which last year they earned slightly less than they spent on performers - 44.295 euros. VAT at the rate of 7 percent was also declared and paid on it, in accordance with Article 24 of the Law on Value Added Tax.

The PU announced that tax inspectors during the Lake Fest monitored traffic through tax registers and taxpayers who provided catering services, i.e. selling food and drinks to visitors, and that misdemeanor orders were issued to those who found irregularities.

The organizer of the Southern Soul festival held in Ulcinj for last year's edition reported and paid taxes in the total amount of nine thousand euros, based on the sale of tickets and the hiring of musicians. When it comes to the Refresh festival, the organizer hired contractors last summer on the basis of a contract concluded with agencies, where the right to deduct input VAT was not used, and therefore output VAT was not reported either, the Tax Office announced. As for ticket sales, a turnover of 21 and a half thousand euros was recorded, on which VAT was duly calculated and paid at the rate of seven percent.

According to data from the PU, Nikšić's Bedem Fest hired several contractors on the basis of a work contract, and most of them (mainly contractors from Montenegro) waived their right to monetary compensation, which the organizers themselves repeatedly emphasized. The performances of those musicians who were paid cost a total of 4200 euros, on which taxes and surcharges were reported and paid, while an income of 3044 euros was generated from the sale of tickets.

"The tax administration monitors the regularity of operations and compliance with tax regulations in the organization and realization of music festivals that are organized in Montenegro from year to year. During the controls, a special focus is on checking the accuracy of the calculation and payment of VAT tax obligations, as well as registration and payments taxes and contributions to personal income based on the payment of royalties to program performers," the Tax Administration announced.

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