View From The Merch Table: Concessions, VAT – And What’s Actually Fair

By George Pirounakis

There’s a quiet conversation that needs to be had in touring circles — especially as costs skyrocket, logistics get tighter and everyone’s trying to keep the lights on. It’s about concessions, VAT and why more and more bands are walking away from merch tables wondering if it’s even worth it anymore.

Let’s break it down…

The Legal Reality

Selling merchandise legally in most EU countries requires a local VAT number and legal receipt issuing.

If you don’t have those, you’re not allowed to sell — full stop.

That’s where concession services come in. A local partner handles the sales on your behalf, under their business license. They deal with:

• Legal invoicing;
• Tax submission;
• Sometimes POS systems and staffing.

And for that, they absolutely deserve a handling fee. That’s work. That’s responsibility. That’s fair.

The Issue: When Concession Terms Start to Hurt

The problem isn’t the concept — it’s how it’s executed.

We’ve started seeing a pattern where:

• The concession keeps the entire VAT amount (up to 24 per cent in some countries); and then

• Charges an additional 25 per cent fee on the gross (yes, gross — before any expenses)

That’s not just a cut. That’s a cut after the tax is already taken out — and suddenly, nearly half your income is gone before you’ve paid for printing, transport, hotels, or crew.

On a €2,000 merch night, you could be walking away with €1,100 — and that’s before any actual expenses.

Why This Isn’t Sustainable

• Bands can’t reinvest.
• Crew gets squeezed.
• Merch prices go up to try and compensate.
• Fans feel it first — higher prices, smaller selections.

We’re not blaming anyone — but if this becomes the norm, touring becomes a luxury, not a job.

The Fair Model (And Why It Works)

There’s a better way to do this — one that keeps everything legal, sustainable and fair across the board.

A healthy, transparent concession system should look like this:

1. VAT is kept by the local partner. That’s legally necessary. No issues there.
2. A handling fee is then applied to the net amount, not the gross.

• 15 per cent of net is more than fair for most shows.
• Up to 20 per cent at larger events where more logistics and support are involved.

This model ensures:

• The partner is compensated fairly.
• The band can still earn.
• Prices can stay reasonable for fans.
• Everyone stays compliant.

It’s not about cutting corners — it’s about cutting smart.

What Bands Can Do

Make sure you understand the terms before the tour starts.

Merch clauses are often signed without full visibility.

• Ask for a clear breakdown: Is VAT included in the fee? Is the fee on gross or net?
• Try to bring your own trusted concession partner if possible.
• Push for fairness, not discounts. A good deal benefits everyone.

Final Word

This isn’t about pointing fingers.

It’s about keeping the touring ecosystem healthy — from the merch table to the fan’s hands.

If we keep stacking fees on top of tax on top of cuts, we’ll price fans out and wear down the people making it all happen.

Merch is supposed to support the tour — not sink it.

Let’s make sure the system we’re building still works for the people it’s meant to support.