vat information leaflet no. 02/2006 -...
TRANSCRIPT
VALUE-ADDED TAX
INFORMATION LEAFLET NO. 2/06
Concert and Theatre Tickets,Admission to live events,Concert Promoters,Non-Established Performers.& General Live Entertainment
January, 2006 www.revenue.ie
Revenue Legislation Services
This information leaflet which sets out the current practice at the date of its issue is intended for guidance only and does not purport to be a definitive legal interpretation of the provision of the Value Added Tax Act 1972 (as amended).
Contents
1. Definitions
2. Legislation – Relevant sections of the VAT Act
3. Summary
3.1 Background
3.2 Ticket prices, promoter’s fees and ticket agent’s commissions
3.3 Performers fees
3.4 Security, catering and similar services
3.5 Traders selling goods or services within a venue
4. Events which come within the scope of the exemption from VAT
5. Events which are liable to VAT at 13.5%
6. Events which are liable to VAT at 21%
7. Traders operating within a venue
8. VAT rates for ticket sales and other supplies associated with an event
9. Treatment of non-established performers and traders
9.1 Relevant sections of the VAT Act
9.2 What VAT obligations have non-established traders?
9.3 Non-established traders – what liability has the provider of premises?
9.4 Non-established performers – who accounts for Vat on performances?
9.5 What VAT obligations have non-established promoters?
9.6 Non-established promoters – what liability has the provider of the premises?
10. The withdrawal of the ‘50% (50/50) rule’ for non-established performers
11. Treatment of performers who promote their own performances
12. Sales of tickets by ticket agents and distributors
13. The VAT treatment of advance ticket sales
14. Royalties, licence fees etc. paid by promoters or performers
15. Date from which this leaflet takes effect
16. Enquiries
Appendix I New concession regarding the supply of certain kinds of food
and drink
Appendix II The ‘Theatres’ concession’ – food or drink served in a separate
room
Value Added Tax
Information Leaflet No. 2/06
Live theatrical and musical events
1 Definitions
In this Information Leaflet, certain terms have specific meanings assigned to them, as
follows:
“Admission”: The allowing of an audience into an event. Admission includes the
selling of tickets and the taking of money at the entrance, so that the person who sells a
ticket for an event is deemed to be providing admission, and is treated for VAT
accordingly.
“Food and drink”: This includes all types of food, hot or cold, and all drinks,
including water, and soft drinks. By concession, Revenue is prepared to extend the
exemption from VAT to include events where certain types of food and drink are
available (see Appendix 1).
“Live theatrical or musical event (event)”: A play, musical, concert, recital,
dramatic presentation, dance presentation, cabaret, comedy act or similar event
performed before a live audience.
“Performance”: The time when the performers are actually on stage or otherwise
providing the entertainment for the audience.
“Performer(s)”: The actors, musicians, dancers and comedians etc. who entertain the
audience. Also includes a group, such as a theatre company, which has the actual
performers as employees.
“Premises-provider”: A person who owns, occupies or controls the venue (including
land in the case of an open-air outdoor event) in which an event is to take place.
“Promotion”: The financing or organizing of an event, including publicizing and
other ventures to increase sales or public awareness.
“Self-promoting performer”: A performer who finances, organizes and publicizes
the performance and/or event.
“Ticket agent/ticket seller”: A person engaged by the promoter to distribute and sell
tickets for an event, normally reimbursed by way of a charge to the customer included
in the ticket price and/or by commission charged to the promoter.
2 Legislation - relevant sections of the VAT Act
The law provides for an exemption from VAT for the following:
“ promotion of and admissions to live theatrical or musical performances,
including circuses, but not including
(a) dances, or
(b) performances in conjunction with which facilities are available for the
consumption of food or drink during all or part of the performance by
persons attending the performance”. [Paragraph (viii) of the First Schedule to the VAT Act 1972 (as amended)]
The law further provides that the following are liable to VAT at 13.5 per cent:
“ promotion of and admissions to live theatrical or musical performances,
excluding
(a) dances, and
(b) performances specified in paragraph (viii) of the First Schedule;”[Paragraph (vi) of the Sixth Schedule to the VAT Act 1972 (as amended)].
The promotion of and admissions to dances are liable at the standard rate of 21 per
cent. Where a dance is held on licensed premises, the law also specifies who is
responsible for accounting for VAT:
“The licensee of any premises (being premises in respect of which a licence for
the sale of intoxicating liquor either on or off those premises was granted)
shall be deemed to be the promoter of any dance held, during the subsistence of
that licence, on those premises and shall be deemed to have received the total
money, excluding tax, paid by those admitted to the dance together with any
other consideration received or receivable in connection with the dance” [Section 8 (3C)(a) of the VAT Act 1972 (as amended)]
3 Summary
3.1 Background
The exemption from VAT for live theatrical and musical events was introduced in
1985. In the intervening two decades a certain amount of confusion has arisen
concerning the type of events to which it applies. Following a number of requests for
clarification it was decided to issue this leaflet to restate the law and provide guidance
regarding its application.
This Information Leaflet sets out the VAT treatment of the different services involved
in the staging of live theatrical and musical events. These services include promoting
the event, distributing and selling tickets, providing security and catering, the sale of
concessions within the venue, the sale of goods within the venue, the performing of the
artists, and the granting of admission. Each of these subjects is dealt with in detail in
the main body of the leaflet and a brief synopsis of their treatment for VAT is set out
below.
3.2 Ticket prices, promoter’s fees and ticket agent’s commission
The law provides that promoter’s fees and admission charges for a live event are liable
to 13.5 per cent VAT if food or drink is available at the event (See Paragraph 5). If no
food or drink is available, then promoter’s fees and admission charges are exempt from
VAT (See Paragraph 4). Non-resident promoters are obliged to register for and charge
VAT in Ireland (See Paragraph 9). Commission fees, credit card handling charges and
any other charges made by ticket selling agents form part of the price of the ticket, and
are liable to VAT at the same rate (See Paragraph 12).
In conjunction with the law, a concession currently operates (See Appendix II – The
Theatres’ Concession) in respect of venues where food or drink is provided, and must
be consumed, in a part of the venue completely separate from the performance. In
addition, as a result of the consultation process undertaken for this leaflet, a new
concessionary treatment is being offered by Revenue in respect of the supply of certain
types of food and drink at events (See Appendix I for full details). In effect, the supply
of crisps, sweets, soft drinks and water will not make an otherwise exempt event liable
to VAT. Only the supply of substantial snacks, hot food or alcoholic drink will be
considered when deciding if an event is exempt or liable to VAT.
3.3 Performer’s fees
Any fee charged by a performer is liable to VAT at 21 per cent. A performer who is
registered for VAT will issue a VAT invoice for the amount of his/her fee and charge
VAT at 21 per cent on the full amount of that fee. A non-resident performer will
normally not be required to register for VAT in Ireland. In the case of performances
by non-resident performers, the person who hired the performer, normally the
promoter, will account for the VAT (See Paragraph 9). If the actual performers are
employees of a production company, then the amount received by that company is
regarded as the performance fee, rather than the salary paid to the performers. Where a
performer promotes his/her own performance, then the fee paid may be split as
between the promotion activities and the performance (See Paragraph 10).
3.4 Security, catering and similar services
These services are all liable to VAT at the appropriate rates (See Paragraph 7). If a
company supplying these services is not established in Ireland it must register and
account for VAT.
3.5 Traders selling goods or services within a venue
Goods and services sold in the course of an event are liable to VAT in the usual way.
Non-resident traders are obliged to register for VAT prior to trading. Concessions
that permit traders to sell goods or services within a venue are liable to VAT at 21 per
cent on the full amount received in respect of the granting of the concession (See
Paragraph 8).
4 Events which come within the scope of the exemption from VAT
The exemption from VAT covers promotion charges and admission fees for all live
events in venues where there are no facilities available for consumption of substantial
snacks, hot food or alcoholic drink (see Appendix 1) during all or part of the
performance by persons attending. Promotion of and admission to any indoor live
theatrical or musical event will be exempt where:
No substantial snacks, hot food or alcoholic drink are supplied to persons
attending the event during any part of the performance.
No substantial snacks, hot food or alcoholic drink are available for purchase
during any part of the event in the room in which the performance is taking place.
No substantial snacks, hot food or alcoholic drink are available for purchase at
any part of the venue which can subsequently be taken by persons attending the
event or on their behalf into the room in which the performance is taking place.
Indoor events to which the exemption applies generally include plays, concerts and
similar events in theatres and concert halls, and any other halls or similar
establishments where substantial snacks, hot food or alcoholic drink are not permitted
to be consumed during all or part of the performance.
This diagram shows the VAT treatment of the supplies that go to make up an
exempt event.
If no substantial snacks, hot food or alcoholic drink are available at the event, then the
ticket sales are exempt from VAT. This means that the promoter is not able to recover
VAT charged by performers, security etc. in connection with the event.
EXEMPT EVENT
Only small cold snacks, confectionary or soft drinks
can be consumed
CUSTOMER
Costs
Premises Provider
Event Security etc.
Ticket Agent
Performer
VAT on heating, light etc can be reclaimed if VAT is charged on supply of the premises
Promoter cannot reclaim VAT charged on performer’s fees, supply of the premises, or any other costs.
Performer’s fees are liable at 21%. For non-resident performers, promoter accounts on reverse-charge basis. Promoter
Security is liable at 21% VAT.
Ticket agents commission exempt from VAT.
Ticket booking fees and other charges exempt from VAT.
Supply of premises may be exempt, or liable at 21% VAT
Ticket sales exempt from VAT.
5 Events which are liable to VAT at 13.5%?
The exemption does not cover promotion of or admission to events where facilities are
available for the consumption of substantial snacks, hot food or alcoholic drink during
all or part of the performance by persons attending the performance. This exclusion
from exemption also applies where a separate charge is made for the food and drink.
The 13.5% rate of VAT applies to events where there are facilities for the
consumption * of substantial snacks, hot food or alcoholic drink during the
performance by persons attending the performance. VAT at this rate must be
accounted for on money received for tickets, and any fee charged by the promoter in
relation to these events. However, this VAT may be offset by the right of the promoter
and the ticket agent to recover any VAT charged to them in connection with the
staging of the event, such as VAT on the performer’s fee, security, hire of equipment
etc.
* The expression ‘facilities for the consumption of food or drink’ does not imply a
formal sit-down venue. If people attending an event can obtain food or drink and
consume it, then it must be accepted that facilities are available to do so.
Accordingly, VAT is chargeable at 13.5% on promotion and admission charges in
respect of any live theatrical or musical event under Paragraph (vi) of the Sixth
Schedule to the VAT Act 1972 (as amended) where:
Substantial snacks, hot food or alcoholic drink are provided to persons attending
the event in the room/venue in which the performance takes place as part of the
admission fee.
Substantial snacks, hot food or alcoholic drink are available for purchase by
persons attending the event in the room/venue in which the performance is taking
place.
Substantial snacks, hot food or alcoholic drink are available for purchase at any
part of the venue which can subsequently be taken by persons attending the event
or on their behalf into the room/venue where the performance is taking place.
Events to which the reduced (13.5%) rate applies generally include:
Cabaret and other performances where the consumption of substantial snacks, hot
food or alcoholic drink are associated with the performance.
Musical or comedy performances in theatres, public houses and other venues
where substantial snacks, hot food or alcoholic drink are served during the course
of the performance.
Performances in hotels, restaurants or other establishments where substantial
snacks, hot food or alcoholic drink are supplied in conjunction with the
performance.
Outdoor concerts where substantial snacks, hot food or alcoholic drink are
available within the confines of the venue.
This diagram illustrates the VAT treatment of the supplies that go to make up a
taxable event.
If substantial snacks, hot food or alcoholic drink are available at the event, then the
ticket sales are liable to VAT at 13.5%. This allows the promoter to recover VAT
charged by performers, security etc. in connection with the event. Since much of the
VAT charged to the promoter is at the 21% rate, the promoter may actually be in a net
VAT repayment position - i.e. the VAT charged to the promoter in respect of costs may
exceed the VAT due on ticket sales.
TAXABLE EVENT
Substantial snacks, hot food or alcoholic drink can be
consumed
CUSTOMER
Costs
Premises Provider
Event Security etc.
Ticket Agent
Performer
VAT on heating, light etc can be reclaimed if VAT is charged on supply of the premises
Promoter can reclaim VAT charged on performer’s fees, supply of the premises, or any other costs.
Performer’s fees are liable at 21%. For non-resident performers, promoter accounts on reverse-charge basis. Promoter
Security is liable at 21% VAT.
Ticket agents commission liable to VAT at 13.5%.
Ticket sales liable to VAT at 13.5%.
Supply of premises may be exempt, or taxable at 21%.
Ticket booking and other fees liable to VAT at 13.5%
6 Events which are liable to VAT at 21%?
Neither the exemption nor the reduced rate applies to the promotion of or admission to
venues where the entertainment, if any, is not a live theatrical or musical performance.
The standard rate of VAT applies to charges made in respect of the promotion of or
admission to these venues.
Venues and events to which the standard (21%) rate applies generally include:
o Dances,
o Discotheques,
o Night-clubs and similar clubs,
o Public houses and any other such premises where there is no live musical or
theatrical performance.
N.B. The 21% rate of VAT applies to dances, whether or not there is a live band. In
these cases, it will be clear that people are attending the dance, rather than the
performance by the band.
7 Traders operating within a venue
Where a concession, licence or right is granted to any person to sell food, drink or any
merchandise, or to supply any services, in a venue, any consideration paid in respect of
such a concession, licence or right is liable to VAT at the standard (21%) rate. Any
traders operating such a concession, licence or right must register and account for VAT
in the usual way in respect of sales made by them. However, the sale of programmes
containing only details of the performance is regarded as ancillary to the performance,
and liable to VAT at the same rate as the admission fee.
All traders are also responsible for ensuring that they possess all relevant permits and
licences required by law or regulations. In particular, any trader selling alcoholic
drinks at an event must possess a licence in his/her own name issued under the
Intoxicating Liquor Licensing Acts which allows the sale of alcoholic drinks at the
venue and for that event. It is illegal for a trader at an event to sell intoxicating liquor
under a licence granted to any other person, including the promoter of the event.
8 VAT rates for ticket sales and other supplies associated with an
event
Irish VAT law allows different rates of VAT to apply to the sale of tickets for different
kinds of events. There are also different rates which apply to other services associated
with events, and these rates are set out in the table below.
Examples of the services and charges associated with events
Only small cold snacks, confectionary or soft drinks can be consumed
Substantial snacks, hot food or alcoholic drink can be consumed
TICKET PRICES Exempt 13.5
TICKET BOOKING FEES Exempt 13.5
TICKET AGENT’S COMMISSION Exempt 13.5
PROMOTER’S FEES Exempt 13.5
PERFORMER’S FEES 21 21
SECURITY 21 21
CATERING 13.5 13.5
CONCESSIONS * 21 21
* Where the promoter or premises-provider charges traders for the right to sell goods and services at
the venue.
As can be seen, the VAT rate that applies to the admission fees for live theatrical or
musical events also extends to other fees and charges connected with the issuing of
tickets and promotion of the events. These include
The booking fees or handling fees charged for issuing a ticket;
The commissions charged by ticket agents;
The fees charged by promoters to performers who have hired them to organise
events;
The fees charged by promoters to venue owners for sourcing performers;
9 Treatment of non-established performers and traders
A separate information leaflet deals with the VAT treatment of cultural, artistic and
entertainment services supplied by non-established persons. The provisions contained
in that leaflet which refer to the supply of services by non-established performers are
included below.
9.1 Relevant sections of the VAT Act
The law provides that
“where a person not established in the State supplies a cultural, artistic, entertainment
or similar service in the State, then any person, other than a person acting in a private
capacity, who receives that service shall
(i) in relation to it, be a taxable person or be deemed to be a taxable person,
and
(ii) be liable to pay the tax chargeable as if that taxable person had in fact
supplied the service for consideration in the course or furtherance of
business;
but where that service is commissioned or procured by a promoter, agent or other
person not being a person acting in a private capacity, then that promoter, agent or
person shall be deemed to be the person who receives the service;”[Section 8(2)(aa) of the VAT Act 1972 (as amended)]
In addition Section 8(2)(d) of the VAT Act 1972 (as amended) provides that a
‘premises provider’ (being a person who owns, occupies or controls land) who allows
non-established traders or promoters to operate on the land, has certain obligations
with regard to the VAT liability of these non-established traders or promoters.
In the case of non-established traders supplying goods for a period of less than 7
consecutive days on the land, the premises provider must, not later than 14 days before
the day on which the non-established trader is allowed to trade on the land, notify the
local Revenue District of the name and address of the trader, the dates on which the
trader intends to supply goods, and the address of the land.
In the case of non-established promoters supplying a cultural, artistic, entertainment, or
similar service, the premises provider must, not later than 14 days before the day on
which the service is scheduled to begin, notify the local Revenue District of the name
and address of the promoter, and the dates, duration and venue of the event or
performance.
Where a premises provider fails to provide true and correct information as required,
then he/she may be made jointly and severally liable with the non-established trader or
promoter for the VAT due in respect of the supplies made by them.
9.2 What VAT obligations have non-established traders?
Where non-established performers or any other non-established traders make sales of
merchandise such as CDs, posters, t-shirts etc at a venue in the State, they are obliged
to register and account for VAT on all such sales and all other supplies made by them.
9.3 Non-established traders – What liability has the provider of the premises?
Where a person who owns, occupies or controls premises (whether the owner or a third
party) allows a non-established trader to supply goods for a period of less than seven
consecutive days on the premises in which a performance is to be held, the provider of
the premises must give the following information to Revenue:
The name and address of the non-established trader.
The dates on which the non-established trader intends to trade on the premises
The address of the premises
The provider of the premises must give this information to the District Officer of the
appropriate local Revenue District not later than 14 days before the performance is
scheduled to begin.
Where this information is not given to Revenue as set out above, the provider of the
premises may be made jointly and severally liable with the non-established trader for
the VAT liability in respect of the supplies of goods in the premises concerned. In
practice, this means that if the non-established trader fails to register and account for
any VAT due in respect of sales made in the State, the provider of the premises,
whether the owner or a third party or both jointly, will become liable for the entire
amount of VAT due.
9.4 Non-established performers – who accounts for VAT on performances?
A non-established performer is an individual who is not normally resident in the State
or who does not have a business establishment here. It also may be a performance
company which does not have a business establishment here. Section 8(2)(aa) of the
VAT Act as set out in paragraph 9.1 above provides that a non-established performer
is not obliged to register and account for VAT in respect of live theatrical or musical
performances in the State. Instead, the promoter, agent or other person (including non-
established promoters etc – see Paragraph 9.5) who commissions the performance or
event is automatically obliged to account for the VAT due. This applies even where
the turnover from the performance does not exceed registration thresholds.
9.5 What VAT obligations have non-established promoters?
Non-established promoters supplying services in Ireland must register and account for
VAT on taxable supplies made by them, and also in respect of any payments made by
them to non-established performers*. In practice this means that registration is
required in all circumstances, except only where the non-established promoter is
promoting only a performance by a performer registered for VAT in Ireland, and this
performance features in an event which comes under the exemption from VAT. *This
applies even where the payments are the subject of a separate contract covering a
number of performances in different countries, or where the performer issues an
invoice from an establishment outside the State in respect of the performance. If the
place of supply of the performance is Ireland, then the VAT liability for payments to
the performer arises in Ireland.
9.6 Non-established promoters – what liability has the provider of premises?
Where a non-established promoter arranges for the supply of live musical or theatrical
entertainment, the person who owns, occupies or controls the premises in which the
performance is to take place has certain obligations to Revenue.
The provider of the premises must give the following information to Revenue:
The name and address of the non-established promoter.
Details such as the dates, duration and venue of the performance.
The provider of the premises must give this information to the District Officer of the
appropriate local Revenue District not later than 14 days before the performance is
scheduled to begin.
Where this information is not given to Revenue as set out above, the provider of the
premises may be made jointly and severally liable with the non-established promoter
for the VAT liability in respect of the performance. In practice, this means that if the
non-established promoter fails to register and account for any VAT due, the provider
of the premises, whether the owner or a third party or both jointly, will become liable
for the entire amount of VAT due.
10 The withdrawal of the ‘50% (50/50) rule’ for non-established
performers
The ‘50% rule’ was an administrative procedure whereby Revenue, on a concessional
basis, allowed promoters/performers/venue owners (as appropriate) to account for
VAT on performances by non-established performers as follows:
“50% of the gross income @ 21% was treated as being the amount of tax payable by
the performer on his/her performance at the event. There were no input credits
available against this amount. There were no further reductions available.”
This was intended to simplify the application of VAT for non-established performers.
However, the law was changed to remove the requirement for non-established
performers to register and account for VAT, with effect from March 2002 (see
Paragraph 9.4 above). This change removed the necessity for the ‘50% rule’.
However this ‘rule’ continued to be applied in certain circumstances.
In order to ensure a consistent approach to the taxation of performances by non-
established performers, the provisions of the legislation referred to in Paragraph 9.4
above must now apply in all circumstances. The ‘50% rule’ therefore can no longer
apply to such performances, and this concession is now withdrawn (but see Paragraph
15 for effective date).
11 Treatment of performers who promote their own performances
Where a performer promotes, either by him/herself or with others, an event in which
he/she is performing, any payment received must be apportioned as between the
performance and the promotion. Any such apportionment will depend on the
individual circumstances, and the performer must demonstrate to the satisfaction of
Revenue that the apportionment is a correct one. Where the actual performers are
employees of the promoter or another company, the promoter or other company is
liable for VAT on the performance.
If a performer can show evidence of real work carried out in the promotion of the
event, Revenue is prepared to accept that a portion of the payment received by a self-
promoting performer may be treated as being in respect of the promotion, up to a
maximum of 40 per cent of the total, which is either exempt or liable to VAT
according to the nature of the event. The remainder, at least 60 per cent, is treated as
being in respect of the performance, and liable to VAT at the standard (21%) rate.
12 Sales of tickets by ticket agents and distributors
A promoter of an event may use a ticket agent to sell tickets for events. Promoters and
ticket agents may also use a network of distributors, such as local music stores, to
ensure a broad distribution of tickets. The actual sale of a ticket by a promoter, a ticket
agent or distributor is the supply to the customer of the right to admission to an event.
Accordingly, for an event that does not come within the scope of the exemption, the
agent or distributor who sells a ticket is liable to account for VAT on the full sale price
(the face value of the ticket and all booking charges and fees whatsoever, including
any commission charged to the promoter) at the rate appropriate to the event.
The agent or distributor should issue a VAT invoice for the commission on the sale.
The person to whom the agent or distributor forwards the balance of the ticket price
(e.g. another agent or the promoter) must issue a VAT invoice on receipt of the money,
and account for VAT on the amount received.
The diagram below illustrates the VAT treatment of the sale of tickets for a
taxable event by ticket agents and distributors.
Promoter
Customer
Ticket Agent
Distributor
Distributor sells ticket to customer, granting right of admission to an event
Distributor accounts for VAT on full amount paid by customer at the time of payment
Ticket agent issues VAT invoice to distributor on receipt of ticket money
Distributor issues VAT invoice for commission on ticket sale
Promoter issues VAT invoice to ticket agent on receipt of ticket money
Ticket agent issues VAT invoice for commission on ticket sale
Payment for ticket Ticket to customer
Where a ticket agent or promoter sells a ticket directly to a customer, the agent or promoter accounts for VAT on the full amount paid by customer at the time of payment
13 The treatment of advance ticket sales
Payments received in advance of the supply of goods or services are always liable to
VAT at the time the payment is made. This also applies to sales of tickets for live
theatrical and musical events, where these are sold prior to the date on which the event
takes place (but see Paragraph 15 for effective date).
Ticket sales in advance are liable to VAT by reference to the date on which the ticket
is sold and VAT must be accounted for in the taxable period in which the sale is made,
and not when the event takes place. The rate of VAT that applies is always the rate
current at the time of sale of the ticket.
If an event is cancelled, and the promoter, ticket-agent or distributor refunds the full
amount of the ticket, including VAT, to the purchaser, a claim may be made in the
next VAT return for a repayment of any VAT previously submitted.
It should be noted that advance payments by promoters to performers are also liable to
VAT at the time of payment.
14 Royalties, licence fees etc. paid by promoters or performers
Certain performances consist of or contain material which is subject to copyright or
similar intellectual property protection. Any fee charged by a person registered for
VAT in Ireland in respect of the right to use this material is liable to VAT at 21 per
cent.
Where the person who holds the copyright etc. is not established in the State, then
payments made come within the scope of the Fourth Schedule to the VAT Act 1972
(as amended). This means that the promoter or performer who pays the fee must also
account for the VAT on the fee as though he/she had supplied the right to use the
material. If the event comes within the scope of the exemption, then this VAT may not
be recovered.
15 Date from which this leaflet takes effect
This Information Leaflet is issued in order to clarify the application of VAT to live
theatrical and musical events. In some cases, the treatment of certain issues as set out
in the leaflet may entail changes from current practice. In recognition of difficulties
that traders might encounter with a sudden implementation of these changes, Revenue
is prepared to defer implementation of these to a later date.
Accordingly, the 50% or 50/50 rule (see Paragraph 10) may continue to operate until 1
January 2007. The VAT due on any events taking place on or after 1 January 2007
must be accounted for as set out in Paragraph 9 above.
Tickets sold in advance (see Paragraph 13) for events taking place before 1 January
2007 may continue to be treated in accordance with current practices. However, VAT
must be accounted for on tickets sold in advance for events taking place on or after 1
January 2007 by reference to the date on which the ticket is sold.
Otherwise, the provisions contained in the leaflet should be regarded as effective from
the date of the appropriate governing legislation.
16 Enquiries
For further information on any VAT matter, whether a general enquiry or an enquiry
relating to a specific transaction, you should contact your local Revenue District.
Details for all Revenue Districts can be found by clicking here.
VAT Interpretation Branch,
Indirect Taxes Division,
Dublin Castle.
Appendix I: New concession regarding the supply of certain kinds of
food and drink
Previously, where food and/or drink were available at any event, the promotion and
admission fees were in all cases liable to VAT. However, in recognition of certain
practical difficulties, and to ensure consistency of treatment, Revenue is prepared to
concessionally disregard the supply of certain items of food and drink when
considering the VAT treatment of events.
Revenue will allow the exemption to continue to apply to events where certain cold
snack foods, confectionary and soft drinks can be consumed during the performance.
This means that promotion charges and the sales of tickets for these events will not
now be subject to VAT, whereas previously the availability of any food and drink
would have denoted a VAT liability. The items of food and drink to which this
concession refers are as follows:
Food DrinkConfectionary:
Savoury snacks:
Fruit
Packets of sweets Bars (e.g.
chocolate) Chewing gum Lollipops etc.
Crisps and similar snacks
Peanuts Popcorn (incl.
heated)
Soft drinks:
Water:
Hot drinks:
Carbonated (fizzy) drinks
Fruit juices Milk ‘Smoothies’ and
other milk or yoghurt based drinks
‘Slushies’ and similar ice drinks.
Still bottled water Sparkling bottled
water
Tea Coffee Hot chocolate
Sales of any other kind of food and drink including sandwiches, wraps, hot snacks,
meals and alcoholic drink are not included in this concession. The sale of such items
would have the effect of bringing the event within the scope of VAT.
Appendix II: The ‘Theatres’ Concession’ - food or drink supplied in a
separate room
Many theatres allow the supply of food and drink during an interval or intermission in
a performance. Revenue concessionally allowed the exemption from VAT to continue
to apply to these events on the following conditions:
The food and drink was only available in a room separate from the auditorium in
which the performance was taking place,
The performance was not visible from the room where the food or drink is
available,
Patrons were not permitted to take the food or drink into the auditorium where the
performance was taking place before, during or after the interval.
While this concession was originally only granted in respect of theatres, Revenue has
extended it to include other types of performances in other venues. Accordingly, in the
case of any event, where substantial snacks, hot food or alcoholic drink (See Appendix
I above) are available to the audience at any stage during the performance, then the
event remains within the exemption if it is the stated and enforced policy of the
management that the following conditions are adhered to:
Substantial snacks, hot food or alcoholic drink are only available in a separate part
of the venue from that in which the performance takes place,
The performance is not visible from the area where the substantial snacks, hot food
or alcoholic drink are available,
Patrons are not permitted to take substantial snacks, hot food or alcoholic drink
into the part of the venue where the performance takes place at any time during the
performance.
The availability of substantial snacks, hot food or alcoholic drink under any other
circumstances would have the effect of bringing the event within the scope of VAT.