Romania introduces a 4% levy on VoD services
- The new law requires them to pay on revenues generated within the country, from subscriptions or single transactions for viewing audiovisual works
It’s official: Romania has now joined the European club of countries demanding VoD players to pay revenue generated by their platforms within their borders, along the likes of Switzerland and Denmark.
The details of this provision have been reported by Business Review. The changes have been applied to the local Audiovisual Law n. 504/2022, as well as on the Cinematography Ordinance n. 39/2005.
Specifically, the government approved two levies: a 4% levy on VoD services on revenues generated in Romania, from subscriptions or single transactions for viewing audiovisual works through data transmission services, and a 3% levy on the price paid by viewers for each audiovisual work downloaded, by way of data transmission services or streaming platforms. This provision already existed but it was amended to expand its applicability.
VoD providers will be required to pay the levies directly to the National Centre of Cinematography (CNC). VoD providers may also choose to directly finance local film productions. If that is the case, they may invest up to 40% of the 4% levy on this type of backing. Other types of audiovisual works (such as series or TV programmes) will not be eligible. To qualify, VoD providers will be required to notify the CNC of their interest in direct investment and provide a request signed by a Romanian film producer for such investment.
The levies will be applicable to both Romanian and foreign VoD services operating in the country. These changes are the result of the transposition into Romanian law of the EU’s much-debated AVMS Directive.
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