Dinny McGinley (Donegal South West, Fine Gael)
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Question 297: To ask the Minister for Finance his views on removing the VAT on non-resident artists who perform in border counties; and if he will make a statement on the matter. [6591/06]

Dinny McGinley (Donegal South West, Fine Gael)
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Question 312: To ask the Minister for Finance his views on removing the VAT on non-resident artists who perform in border counties; and if he will make a statement on the matter. [6592/06]

Brian Cowen (Laois-Offaly, Fianna Fail)
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I propose to take Questions Nos. 297 and 312 together.

The VAT treatment of goods and services is governed by EU law with which Irish VAT law must comply. European law does not allow for the zero rating or exemption of these fees. Performance fees charged by musical or theatrical performers are therefore liable to VAT at the standard rate of 21%.

The VAT Act lists a range of activities that are exempt from VAT. Included in the list is the promotion of and admissions to live theatrical or musical performances. This very broad exemption is allowed under Article 13(1)(n) of the sixth VAT directive. In effect this means that the promoter realises the full value of admission fees as no VAT is applied to them. In this regard, the current exemption is very generous and covers a broad range of activities accessible to the wider public.

Fergus O'Dowd (Louth, Fine Gael)
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Question 298: To ask the Minister for Finance the amount raised in VAT revenue by privately purchased school coaches in 2005; and his views on introducing a VAT waiver for schools as they seek to upgrade their vehicles to higher safety standards. [6906/06]

Brian Cowen (Laois-Offaly, Fianna Fail)
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I am informed by the Revenue Commissioners that the amount of VAT collected in respect of the sale of school coaches cannot be identified in the overall yield of VAT, as the information furnished on VAT returns does not require this to be identified.

On introducing a VAT waiver for schools, educational institutions recognised by the State are exempt from VAT under the EU sixth VAT directive. This means that they do not charge VAT on the services they supply and cannot recover VAT on the goods and services that they purchase. Essentially, only VAT-registered businesses which charge VAT are able to recover VAT.

It is normal for State funded services, such as schools or hospitals, to bear VAT on their purchases. However, Exchequer funding for such services, including primary and secondary schools, takes account of VAT when allocations are being made by the Government.