Jack Chambers (Dublin West, Fianna Fail)
Link to this: Individually | In context | Oireachtas source

191. To ask the Minister for Finance his plans to introduce a 23% VAT rate on certain music and art schools; the reason for this change in VAT rules; the reason certain institutions are affected and others are not; his views on whether these changes are in line with the findings of the report Culture 2025 - Éire Ildánach, a Framework Policy to 2025 published by the Joint Oireachtas Committee on Arts, Heritage, Regional, Rural and Gaeltacht Affairs in July 2017; and if he will make a statement on the matter. [45818/17]

Paschal Donohoe (Dublin Central, Fine Gael)
Link to this: Individually | In context | Oireachtas source

The VAT rating of goods and services is subject to the requirements of EU VAT law, with which Irish VAT law must comply. I am advised by Revenue that there has been no change in the position in relation to the VAT treatment of music and art schools.

In accordance with the EU VAT Directive, the VAT exemption applies to the providers of children’s or young people’s education and school or university education. The exemption also applies to the providers of training and development courses subject to the training and retraining being of a vocational nature.

Where the music or art school is providing courses for educational or vocational purposes, any such course is exempt from VAT provided the lessons in question are provided as part of a programme that meets the standards set out by the Department of Education and Skills syllabus or, in the case of vocational training, the course is aimed at acquiring or updating knowledge in relation to a specific profession or trade.

Where a music or art school is providing courses primarily for recreational purposes the position continues to be that these courses are liable to VAT at the standard rate. If the music or art school has any doubt as to the eligibility for exemption of any of its courses they should contact their local Revenue District for advice.