What the VAT increase means for music
News: 23rd June 2010 by Louise Dodgson under Finance, Law & Music Business
The announcement of the new budget is always important news for everyone, however yesterday's announcement has created a huge impact due to the Chancellor announcing a hike in VAT from 17.5% to 20%, due to come into effect in January 2011.
Music retailers and fans alike will be affected by this. Whilst fans can expect to see the price of gig and festival tickets go up, not to mention CDs and DVDs, music retailers may be put in the position to choose to absorb the hike in price so as not to discourage sales in an already struggling area. Billboard's article below lays out all the facts and figures in an easily understandable way.
cd sales, music retailers, music fans, budget 2010