Belgian festivals warn of tax threat to summer season

Belgium’s festival sector is raising the alarm after tax authorities ruled that several non-profit organisers must pay corporate tax, potentially upending the country’s summer festival scene.

The tax office has decided that organisations such as De Roma in Antwerp and Dranoeter, which runs the Dranouter folk festival, must pay 25 per cent corporate tax on profits, even though they are officially non-profits (vzw’s).

Traditionally, most Belgian music festivals (around 90 per cent) operate as non-profits, allowing them to reinvest any surplus in future events, young artists or community projects, rather than distributing profits.

Authorities argue that some festivals now operate too “professionally” to be considered non-profits. By selling tickets online or rewarding volunteers with drink tokens, for example. The sector, however, says these practices are necessary to stay viable.

“Festivals are being punished for acting responsibly”

“Festivals are being punished for acting responsibly,” Serge Platel of the Festival Federation told De Standaard. “If this interpretation becomes the norm, it could put our festival summer at risk.” He warned that festivals often rely on modest reserves to cover bad weather or financial setbacks, and that taxing these funds could endanger their survival.

Some events, like Rock Ternat and Labadoux, have already folded or paused operations after similar tax rulings. Others are converting into commercial companies, but this reduces their profit margins and limits cultural reinvestment.

Some politicians are now also calling for clarity. MP Niels Tas (Vooruit) urged Finance minister Jan Jambon (N-VA) to define clear criteria distinguishing non-profits from commercial ventures. Jambon’s office acknowledged a “grey zone” and said a reform of non-profit taxation is planned for 2027, though it remains unclear whether the changes will favour the tax authorities or the cultural sector.

^{Dranouter festival © BELGA PHOTO KURT DESPLENTER}