Dáil Éireann Debate, Tuesday - 2 November 2021
254. Deputy Seán Canney asked the Minister for Finance if he will consider a reduction in the rate of VAT for music and live entertainment performers from 23% to 9% to realign with the hospitality sector; and if he will make a statement on the matter. [52080/21]
View answerThe VAT rating of goods and services is subject to EU VAT legislation with which Irish VAT law must comply. In general, the EU VAT Directive provides that all goods and services are liable to VAT at the standard rate, currently 23% in Ireland, unless they fall within categories of goods and services specified in Annex III of the VAT Directive, in respect of which Member States may apply a lower rate from VAT. Ireland, in line with the VAT Directive, also maintains several standstill provisions and derogations that allows it to maintain reduced rates to certain supplies for historical reasons. It is on this basis that Ireland has provided for an exemption from VAT to live theatrical or musical performances (excluding dances) where no food or drink is served. A reduced VAT rate of 9% applies to live theatrical and musical events where food or drink are available for consumption.
It is not possible under the VAT Directive to allow a reduced rate of VAT to be applied to the fee charged by a performer; this can only be applied to the promotion and admission charges. This means that where a band or entertainer is hired for a function such as a wedding, the hiring service is subject to the standard rate of VAT, currently 23%.
