Problems with VAT reduce À Punt's resources and will affect its programming

The inability of the Valencian television station À Punt to deduct VAT and the lack of support from the Administration (in other autonomies the regional governments do take care of the non-deductible VAT) will fully affect the programming of the regional channel.

Oliver Thansan
Oliver Thansan
03 November 2023 Friday 10:30
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Problems with VAT reduce À Punt's resources and will affect its programming

The inability of the Valencian television station À Punt to deduct VAT and the lack of support from the Administration (in other autonomies the regional governments do take care of the non-deductible VAT) will fully affect the programming of the regional channel. The Governing Council agreed this week to reserve 11.5 million euros of its budget to be able to face the corresponding payment of VAT in 2024, which will force it to cut resources destined for external production, investment in technology and promotion.

This reduction in available resources will not affect the workforce since VAT is not paid on staff contracts, which, furthermore, cannot be terminated. For this reason, as La Vanguardia has learned, the budget reduction will affect the contracting of entertainment programs and contests, as well as the broadcasts, for example, of sporting events that are outsourced through specifications.

Although the network remains on the sidelines and does not give any clues as to how these forced cuts may affect, the truth is that except for news production, the bulk of the programming is made up of external productions that could be affected by the cuts.

The Consell Rector, for its part, did make it clear in a statement on Thursday late in the afternoon that, "in this draft Budget Law for 2024, the Valencian government, as the previous Consell de la Generalitat also did [ "is in the hands of the left], has not reserved any specific item destined to assume the claim of the Tax Agency regarding the VAT deducted between the years 2016 and 2021, the procedure of which remains open and pending resolution".

A situation that has forced the television governing body to be cautious and reserve those 11.5 million to face the non-deductible VAT of 2024. All with the objective of "avoiding the risk of possible sanctions and establishing a future scenario with more certainty that gives security to the chain".

In the statement, the Governing Council recalls that "the VAT conflict with all public television comes from afar. Regarding the Valencian public television, the Tax Agency (AEAT) demands 26.8 million euros corresponding to the years that go from 2016 to 2021".

Faced with this situation, the Governing Council seems to miss the lack of support from the Valencian Government. In this sense, they emphasize that the VAT problem does not occur on all Forta television stations: In the case of Catalonia, Galicia, the Canary Islands, Murcia, Asturias, Castilla La Mancha and the Balearic Islands, the autonomous governments are responsible for the VAT. deductible through different formulas, such as budget increases, corporate policies, additional current economic contributions or loans, explain the same sources.

Meanwhile, they continue, in the case of Andalusia and Madrid, they are financed with short-term loans to absorb part of the extra cost; Aragón television faces it through short-term credit policies with financial institutions.

The change of government does not seem to have improved the situation of television. In fact, it cannot be ignored that one of the two members of the Consell (Vox) has publicly shown its intentions to dispense with this public service for all Valencians.

At the moment, this path has not been chosen, but the suffocation of not being able to count on 11.5 million of the 67 that the Sociedad Anònima de Mitjans de Comunicació has budgeted (17%) represents a great impediment to maintaining standards of quality in programming.