Dáil Éireann Debate, Tuesday - 30 November 2004
229 Mr. R. Bruton asked the Minister for Finance if his attention has been drawn to the fact that the VAT rate on cinemas is 13.5%, whereas a film rented on video is charged to VAT at21%; and if he will make a statement on the basis of this different treatment within the tax code of the same product. [31070/04]
View answerUnder paragraph (v) of the Sixth Schedule to the VAT Act 1972 (as amended), the VAT rate on admissions to cinemas is the reduced rate of 13.5%. The goods and services to which member states are allowed apply a reduced VAT rate are set out in Annex H of the EU Sixth VAT Directive. While admissions to cinemas are listed in this annex, it does not include the rental of videos and DVDs. Accordingly, it is not possible under EU law, with which Irish law must comply, to apply a reduced VAT rate to the rental of these items. The rental of videos and DVDs is, therefore, subject to the standard VAT rate of 21%.
