Dáil Éireann debate -
Tuesday, 19 Feb 1991

Vol. 405 No. 3

Written Answers. - National Lottery VAT Rate.

Michael Creed

Question:

86 Mr. Creed asked the Minister for Finance if his attention has been drawn to the fact that (1) the national lottery has a zero VAT rating and (2) that this gives it unfair advantage over other charitable lotteries who are subject to VAT at the rate of 25 per cent; and if he will make a statement on the matter.

Minister for Finance (Mr. A. Reynolds)

The Deputy's information is incorrect; the national lottery do not enjoy a zero-rated status for VAT purposes. The company are, in fact, VAT-exempt which means that, while they do not have to charge the tax on their ticket sales, neither can they recover VAT on any purchases of business requirements.

Lotteries, other than the national lottery, do not have to charge VAT on their ticket sales either. However, one specialist company operates a series of lotteries under the Gaming and Lotteries Act on behalf of a number of charities. These charities use the specialist company's professional services to promote, market and manage the lotteries on their behalf. In this instance, a service of management is being provided to the various charities and this specific activity must bear VAT. The applicable rate will be 21 per cent from 1 March next.