Faroese government to review VAT law and exemptions

The Faroese government will soon review the entire value-added tax law, including its exemptions and reliefs, KVF reports.

Finance Minister Aksel V. Johannesen said the exemptions should be reconsidered in a response to Member of the Faroese Parliament Hervør Pálsdóttir.

Pálsdóttir had asked whether tickets for events including plays and concerts should be exempt from VAT.

Johannesen said exemptions create more extensive administrative work for businesses and public authorities, reduce the tax base and may not always have their intended effect.

VAT is the Faroese treasury’s largest and most important source of revenue, he said.

The government has not yet considered exempting tickets for plays and concerts from VAT. The Ministry of Finance does not know how much such an exemption would cost, Johannesen said.