Tom Neville (Limerick County, Fine Gael)
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72. To ask the Minister for Finance the reason the VAT rate for the entertainment industry is 23% (details supplied); and if he will make a statement on the matter. [45436/17]

Paschal Donohoe (Dublin Central, Fine Gael)
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The VAT Consolidation Act 2010, as amended, provides for the application of the standard rate of VAT, currently 23%, to the supply of the service of a band. The VAT rating of goods and services is subject to EU VAT law, with which Irish VAT law must comply. In general, the VAT Directive provides that all goods and services must be charged to VAT at the standard rate unless they fall within particular categories of goods and services specified in the VAT Directive. VAT rating is determined on the basis of particular goods and services, not by goods or services as a whole.

The 9% reduced VAT rate, which was introduced from 1 July 2011 as part of the Government Jobs Initiative, applies to a number of services including those provided by hairdressers and barbers. This is provided for under Annex III of VAT the Directive. There is no provision that would allow a reduced VAT rate to apply to wedding bands.

There is no legislative basis that would allow private individuals to reclaim VAT in the circumstances outlined. VAT is a tax charged on goods and services by businesses who are registered for VAT but ultimately VAT is paid by the end consumer. VAT-registered businesses who are charging VAT are entitled to claim back VAT on their inputs, but individual persons who are not registered for VAT are not entitled to claim back VAT.