Ciarán Cannon (Galway East, Fine Gael)
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122. To ask the Minister for Finance if he will make provision for a reduction in the VAT rate applying to the music and entertainment sector, to align with other EU countries and protect the viability of the sector. [11387/23]

Michael McGrath (Cork South Central, Fianna Fail)
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Under Irish VAT law the supply of services by writers, composers and performing artists are subject to the standard rate of VAT, currently 23%. The providers of such services are required to register for and charge VAT where their supplies exceed €37,000 per annum. However, in line with normal VAT rules, if the recipients of the services are registered for VAT and use the supplies in the course of their taxable business activities, then the VAT charged on the supply is deductible by the recipient.

Section 9 of Annex III provides that Member States may apply a reduced rate to such services; however, any consideration of this possibility would need to assess the benefit of making such a change, given that the VAT charged on services supplied to a VAT-registered business is already deductible by the recipient of the supply, under the normal VAT rules.

It is also important to be aware that Section 7 of Annex III of the VAT Directive provides that the reduced rate of VAT may be applied by Member States to admission to, among other things, cinemas, theatres and concerts. Ireland currently applies the reduced rate of VAT of 9% on a temporary basis to the promotion of and admissions to live musical performances (excluding dances). If no food and drink is available then by way of special derogation, Ireland applies an exemption to such an event.