Vol. 468 No. 4
121 Mr. Cullen asked the Minister for Finance if his attention has been drawn to a company (details supplied) in County Waterford which is engaged in producing films for the video market and is subject to 21 per cent VAT; and if he intends to remove this anomaly. [15951/96]
The position is that the production for sale of films for the video market is liable to VAT at the standard rate of 21 per cent. There is no anomaly in the application of VAT as the standard rate applies to all sales of videos.
The company in question has been in contact with both my Department and the Revenue Commissioners requesting application of a zero rate to sales of videos of a dramatic nature produced in Ireland. However, the EU Sixth VAT directive, with which Irish law must comply, precludes the application of such a rate. Furthermore, I must point out to the Deputy that the application of any taxation measures which favour domestic products over those of other member states would be forbidden by the treaties.
However, I understand that a large part of the company's output is exported to destinations outside the EU or sold to tourists visiting the State. The Revenue Commissioners have advised the company that these exports qualify for the zero rate, as do videos sold to non-EU tourists under the retail export scheme.
Details of the latter scheme have been sent to the company.
