asked the Minister for Finance if he will review the case (details supplied) where the Revenue Commissioners are seeking the payment of VAT on a community festival booklet which was distributed free of charge in the local community; and if he will make a statement on the policy of charging VAT on such a voluntary community effort.
Written Answers. - Community Festival Booklet VAT Charge.
305.
VAT was correctly charged in this case by the printer on the cost of supplying the booklet to the community festival committee. The fact that the booklet was then distributed free of charge by the committee does not affect the position. There is no provision for repayment of tax in these circumstances.
In general voluntary bodies such as the festival committee, providing goods and services to the community, may be regarded by the Revenue Commissioners as not being "in business" for VAT purposes. As such, they are exempt from VAT. "Exemption" means that such groups do not have to register for, or charge, VAT on goods or services provided by them, even where a charge is made for such goods or services. On the other hand, such groups must bear, without refund, any VAT charged to them on their inputs. There are a number of reasons for not altering this system. Firstly, there is the cost, which could be very substantial. Secondly, it would be next to impossible for the Revenue Commissioners to administer a system of refunds for voluntary bodies generally. Thirdly, the best method of giving State aid, where funds are available, is directly through the appropriate State Departments or agencies.