Seán Sherlock (Cork East, Labour)
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Question 101: To ask the Minister for Finance his views on reviewing the rate of VAT on bands here in the current economic climate as gigs become harder to secure for persons whose only source of income is derived from gigs; and if he will make a statement on the matter. [22198/09]

Seán Sherlock (Cork East, Labour)
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Question 102: To ask the Minister for Finance if he will introduce a reduced VAT rate on band equipment; and if he will make a statement on the matter. [22199/09]

Brian Lenihan Jnr (Dublin West, Fianna Fail)
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I propose to take Questions Nos. 101 and 102 together.

With regard to the VAT on band equipment, the VAT rate applicable to the supply of band equipment is the standard rate of 21.5%. In matters relating to the VAT rating of goods and services I am constrained by the requirements of EU law with which Irish law must comply. As band equipment is not listed in Annex III of the EU VAT Directive the reduced VAT rate cannot be applied to those goods. With regard to the VAT on bands, performances in the state by a band established in the state are a taxable activity for VAT purposes and VAT is charged at the standard rate. The band must register and account for VAT if the turnover from its activities exceeds an annual threshold of €37,500. In the case of performances outside the State, there is no Irish VAT chargeable, but the band may be liable to register and account for VAT on performances in other Member States.

There are no plans to review the rate of VAT applying to the performance of a band, especially given that admission to such performances are for the most part exempt from VAT, which is not the case in many other EU Member States. A VAT registered band can claim VAT input credit in respect of allowable goods and services used by it in connection with supplies it makes both within and outside the state.

Where a band not established in the state supplies performance services to a person acting in a private capacity in the State, then the band must register and account for VAT at 21.5% on all supplies of such services it makes in the State. No registration threshold applies in such cases. Where a band not established in the State supplies performance services to a person acting in a business capacity in the State, including an agent or promoter, then that person, agent or promoter will be deemed to be the person supplying the services and must register and account for any VAT due on such services. Again no registration threshold applies in such cases.