The tax on variety performances and contemporary music concerts allocated to the CNM is payable by any event organiser holding the ticketing rights, or by the seller in the case of performances presented free of charge, whether they are professional or not, and whether they operate as a private, non-profit, or public organisation. It also applies to those referred to as “occasional organisers”, among whom are often found festival committees, tourist offices, event companies, trade fairs, and exhibitions, among others.
Summary
As of 1 January 2024, the tax on variety performances, originally created by Article 76 of the Amended Finance Act for 2003, is codified in the Code on Taxes on Goods and Services (CIBS), under Articles L 452-14 to L 452-27.
Ordinance No. 2023-1210 of 20 December 2023, establishing Title V of Book IV of the Code on Taxes on Goods and Services and introducing various other measures for the recodification of non-tax provisions, has amended, on a constant law basis, the legal foundation of the tax on variety performances.
Presentation
In accordance with Articles L 452-14 to L 452-27 of the Code on Taxes on Goods and Services (CIBS-[VB1]), supplemented by Articles D 452-10 to D 452-22 of the said Code (formerly Decree No. 2004-117 of 4 February 2004), the tax on variety performances is levied at a rate of 3.5% on the following basis:
For paid performances: amounts paid in respect of audience admission (box office receipts excluding VAT)
For free performances or free-ticketed performances: amounts paid in respect of the right to perform the show (amount of assignment contracts excluding VAT (declaration procedure section))
The proceeds of this tax enable the Centre national de la musique (CNM) to finance support for the live performance sector of contemporary music and variety through numerous redistribution programmes.
NB: There is no link between copyright royalties and the activities of the CNM. The various authors’ collecting societies (Sacem and SACD) are responsible for collecting copyright royalties on behalf of their rights holders (in accordance with the provisions of the Intellectual Property Code [CPI]).
The tax on variety performances is an assigned tax collected by the CNM, a public industrial and commercial establishment, acting as a State operator under the Ministry responsible for Culture.
The tax as a key resource of the CNM redistribution system
Upon payment of the tax on variety performances, a portion of it feeds into the “named entrepreneur account” of each declarant. This portion, set at 60% (from 1 January 2025) of the tax paid, may be repaid in full or in part. The remaining 40% is intended to finance programmes and actions supporting chanson, variety and jazz performances of the CNM.
Information, collection (receipt of declarations and sums paid), and tax control of the tax from liable entities is ensured by the taxation unit (Tax service) of the CNM, in coordination with the CNM Accounting Agency, directly carrying out all operations relating to this tax in order to ensure full compliance with the law throughout the territory.
The collection of the tax proceeds is entirely allocated to the financing of the CNM support scheme.
The data collected through tax declarations also enables the collection of statistical data allowing the CNM to carry out its mission of observation and analysis of the activity of the music and variety sector, using precise data useful to public authorities and to the music and variety ecosystem, in compliance with tax secrecy rules.
Declaration and payment obligations and procedures for the tax on variety performances
Each liable person has a period of 3 months following the relevant performance to submit their tax declaration. The payment deadline is then set at 30 days, end of month, after receipt of the notice of amounts payable (ASP) from the CNM.
In the event of failure to comply with the declaration obligation and, failing regularisation within thirty days from receipt of the formal notice, the control officers proceed with the sending of a notice of ex officio taxation. They may determine the tax base, in particular by reference to turnover generated for one or more comparable performances or for the assignment or licensing of a comparable show. The notified amounts are subject to a 40% surcharge.
The amicable or contentious recovery of the tax falls under the sole responsibility of the CNM Accounting Agency.
Scope of the tax on variety performances
Article D 452-11 of the CIBS defines a variety performance as follows: vocal performances, concerts and jazz performances, rock, traditional music (1), world music or electronic music, comedy performances understood as a sequence of sketches or a spoken recital given by one or more non-interchangeable artists; cabaret performances or performances composed of a sequence of tableaux of various genres such as songs, dance or visual attractions; illusionist performances, aquatic performances or ice performances.
In certain cases referred to in Article D 452-11(4) of the CIBS, concerning comedy performances, musicals and musical shows, the tax is collected by the Association for the Support of Private Theatre (ASTP) or the CNM depending on the place of performance. Thus, for a “one-man show” performed in a venue affiliated to ASTP, the tax is declared to that association, whereas the same “one-man show” performed in a venue not affiliated to ASTP must be declared to the CNM.
Exemptions
Exemptions are limited. They concern:
- Educational (school) sessions:
Performances presented as part of the teaching of an establishment placed under State supervision or having concluded an association agreement with it.
- Traditional music performances:
Article L 452-15, paragraph 2 provides that the following performances are subject to the tax: “variety performances, vocal performances, concerts and jazz, rock, electronic and world music performances, except those falling under traditional music. Works of traditional music are works that no longer generate copyright royalties.”
If the work is registered with SACEM and generates copyright royalties, then you must make your tax declaration in addition, accordingly.
Non-collection of the tax on performances :
Article L 452-25 of the CIBS provides that the tax is not payable where the total amount accumulated over one calendar year for the same liable person is less than €80.
In practice, this means that organisers must declare the tax on performances regardless of the amount due for the whole year. The CNM proceeds at the end of the calendar year to reimburse the sums collected where the liable person falls within this exemption.
Procedures for declaring a performance to the CNM
The tax rate is set at 3.5% and applies to revenue from ticketing or from the assignment contract price (in the case of free performances), excluding VAT (1) generated by the performance.
Tax base and liable persons
For paid-entry performances:
- Tax base: amounts paid in respect of audience admission (box office receipts excluding VAT (1));
- Liable person: the person on whose behalf the sums are collected, i.e. the ticket holder (a single declarant for the entire ticketing, even in cases of co-production or joint production).
For free performances: - Tax base: amounts paid in respect of the right to perform the show (amounts received in consideration of the assignment or licensing of the right to exploit the show. This includes the entire artistic and technical line-up, plus accommodation, per diems, etc. appearing on the invoice);
- Liable person: the person on whose behalf the sums are collected, i.e. the seller who has invoiced the service. However, the declaration may be made by the organiser of the performance if this is expressly stated in the contract.
It should be noted that no allowance is applicable to the tax base.
(1) Meaning excluding value added tax (VAT).
Procedures and deadlines for declaring a performance
The performance or tour must be declared no later than the last day of the 3rd month following the performance.
To declare a performance, log into your private account and complete the declaration form. If you do not yet have an account, obtain your RCS number and create your account.
Local authorities may indicate the commitment number and service code in order to receive notices via the CHORUS platform.
From 1 January 2025, sums collected by the CNM are redistributed at 60% to an individual entrepreneur account dedicated to the liable structure.
In the case of co-productions or joint productions, only one structure must declare the tax. This structure must, at the same time as its online declaration, submit a reprocessing request.
These online reprocessing requests allow the 60% share to be distributed among the entrepreneur accounts of co-producers or joint producers according to the information provided.
Payment plan
Taxpayers unable to pay the full amount of their debt in a single payment may request payment deadlines from the CNM Accounting Officer. However, it is recalled that a payment schedule is granted only on an exceptional basis and for a duration which ensures effective recovery of the tax by the CNM (generally six months).
The request for a payment schedule must be sent as soon as possible to the following address: agence.comptable@cnm.fr, accompanied by a statement setting out the nature of the difficulties encountered by the organisation. This statement must be supported by any document demonstrating the financial difficulties of the organisation (bank statements, cash flow plan, etc.). It is specified that the applicant must be up to date with their declaration obligations towards the CNM.