The article focuses on the potential impact of a reduced value added tax (VAT) rate on cultural services as a cultural policy goal to increase attendance on cultural events and to increase employment rate in the field of Creative industries. In order to understand this complex relationship, the paper examines the contributions of public management and the economy, to determine the potential outcomes of the following assumptions: (1) a reduced VAT rate will result in lower prices for consumers, (2) lower prices of cultural services will stimulate demand for cultural events, and (3) higher consumption of cultural services will lead to a higher income for artists. Indirect funding methods can often be more effective than direct subsidies. However, indirect tools, such as a VAT reduction, may not always be the most straightforward approach towards achieving cultural policy targets. Although a VAT reduction has great potential as an indirect funding tool, it requires a thorough ex-ante assessment and mid-term evaluation to ensure its effectiveness and consequences in the cultural policy.