Michael Noonan (Limerick City, Fine Gael)
Link to this: Individually | In context

I am advised by the Revenue Commissioners that the EU VAT Directive 2006 permits Member States to limit the scope of the VAT exemption for betting, lotteries and other forms of gambling. Under Irish VAT law, the exemption for gambling is confined to licensed betting, betting on the Tote and lotteries. Accordingly, all gambling and gaming activities carried on in casinos and private members clubs in the State are regarded for VAT purposes as taxable activities, and the persons carrying on such activities must register and account for VAT in respect of those activities where their annual turnover from the activities exceeds a threshold of €37,500. The rate of VAT applicable is the standard rate, which in Ireland is currently 21%.

The VAT rating of goods or services is subject to the requirements of EU VAT law with which Irish VAT law must comply. There are no provisions in the VAT Directive that permit the reduced rate (currently 13.5%) or the zero rate to be applied to gambling or gaming activities.

I have no plans to change the application of VAT to casinos and private members clubs.