Dáil Éireann Debate, Tuesday - 23 September 2014
157. Deputy Pearse Doherty asked the Minister for Finance the reason Irish dancing and ballet lessons are treated differently for VAT purposes; if there are any legal impediments to treating Irish dancing lessons as a cultural activity and to charging them at 9%; and the cost to the Exchequer of such a change. [35234/14]
View answer163. Deputy Michael Lowry asked the Minister for Finance if he will review the VAT rate in place for Irish dancing; his views that this rate is fair when compared to the 0% rate for ballet; if he will reduce the VAT rate for Irish dancing given its cultural importance; and if he will make a statement on the matter. [35334/14]
View answerI propose to take Questions Nos. 157 and 163 together.
The EU VAT Directive, with which Irish VAT legislation must comply, provides a public interest exemption for education. This exemption is set out in paragraph 4(3) of Schedule 1 of the Value-Added Tax Consolidation Act 2010 as children's or young people's education and school or university education provided by educational establishments recognised by the State and education of a similar kind provided by other persons. Ballet schools are regarded as providing VAT exempt education of a similar kind.
With regard to reducing the VAT rate applicable to Irish dancing, the VAT Directive does not allow for the application of a reduced VAT rate to dance lessons in general.
The Deputy refers to cultural activities. Paragraph 5(2) of Schedule 1 of the VAT Consolidation Act provides for an exemption for cultural services provided by recognised cultural bodies but Irish dance lessons are not provided by a recognised cultural body. I would point out that Schedule 1 does provide a VAT exemption for the promotion of, and admission to, live theatrical or musical performances where food or drink is not provided during the performances. It would appear that the admission fees to most feiseanna would benefit from this VAT exemption.
