Dáil Éireann Debate, Tuesday - 21 September 2021
60. Deputy Catherine Connolly asked the Minister for Finance the analysis his Department has carried out into the potential for the reduction of VAT rates for the music and entertainment sector; and if he will make a statement on the matter. [44835/21]
View answerIn Budget 2021, I introduced a temporary reduced rate of VAT, 9%, to apply to tourism and hospitality related services from 1 November 2020 to 31 December 2021, which I have further extended to 31 August 2022.
I can assure the Deputy that the provision I introduced in 2020 does already apply the temporary 9% VAT rate to admission fees for cinemas, theatres and musical performances. The Deputy will also be interested to know that, under long-standing provisions in Irish legislation, admission fees to live theatrical or musical performances are actually exempt from VAT, subject to certain conditions.
I am advised by Revenue that the VAT treatment of admissions to theatrical or musical performances is dependent on the type of event and whether there are facilities available for the consumption of food or drink (including alcohol) during all or part of the performance. In broad terms -
- if there is a live performance and if food or drink are not available, then the admission tickets are exempt from VAT.
- If there is a live performance with food or drink available, then the admission tickets are subject to the reduced rate of VAT, currently 9%.
- for venues and events where the entertainment, if any, is not a live theatrical or musical performance, including dances, discos, nightclubs and pubs, the standard rate of VAT, currently 23%, applies to admission charges.
Where a music band is being hired for a function, such as a wedding, the hiring service is subject to the standard rate of VAT, currently 23%.
