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http://www.unison.ie/irish_independent/stories.php3?ca=9&si= 1686229&issue_id=14630
Festival fans to be hit with 13pc VAT on gig tickets
CONCERT goers are facing a 13.5pc rise in ticket prices next year as part of a Revenue Commissioners crackdown on unpaid VAT.
The Government is set to earn millions of extra euro from the ticket tax, which will cover events like the Oxegen music festival and concerts in venues across the country.
Tickets for music festivals and gigs escaped VAT charges in the past due to a tax exemption introduced in 1985 for live theatrical and musical events.
The Revenue Commissioners have now told music promoters that VAT must be charged on tickets if 'substantial snacks, hot food or alcoholic drink' are served during the music festival or gig.
The Revenue has issued a special leaflet to clear up any 'confusion' and has stated that tickets for events taking place before January could be sold 'in accordance with current practices'.
The VAT rate will apply to tickets for comedy shows, which are also classed as live theatrical events.
There will also be a 13.5pc VAT charge on booking fees, ticket agents' commission and promoters' fees.
Holohan Event Management, which has worked on festivals like Electric Picnic and Hi-Fi Ireland, said the cost of tickets could rise by another €20 if gardai introduce charges for providing the security outside the perimeters of venues.
"Ultimately any increase in charges is going to go back on the ticket because the promoter is going to try to maintain his level of margin," said the company's chairman Gar Holohan.
Concert promoters have always paid for the cost of garda security at events, but under the Garda Siochana 2005 Act, they are liable for the cost of garda services outside the perimeter.
Mr Holohan said negotiations would be taking place on the charges.
"You're talking about for the Electric Picnic next year, the Government will be taking in the region of €700,000 in VAT. And if you look at that, how can you then justify €100,000 going out to the Gardai as well?" he said.
According to the Revenue, the new VAT charge will not apply to events such as theatre plays and operas, even though food and alcoholic drinks are served at the venues.
This is because the food and drink are not permitted to be consumed during the performance.
(WTF?)
The VAT charge will not be applied to events where only cold snacks, sweets and soft drinks can be consumed.
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http://www.unison.ie/irish_independent/stories.php3?ca=9&si= 1686229&issue_id=14630
Festival fans to be hit with 13pc VAT on gig tickets
CONCERT goers are facing a 13.5pc rise in ticket prices next year as part of a Revenue Commissioners crackdown on unpaid VAT.
The Government is set to earn millions of extra euro from the ticket tax, which will cover events like the Oxegen music festival and concerts in venues across the country.
Tickets for music festivals and gigs escaped VAT charges in the past due to a tax exemption introduced in 1985 for live theatrical and musical events.
The Revenue Commissioners have now told music promoters that VAT must be charged on tickets if 'substantial snacks, hot food or alcoholic drink' are served during the music festival or gig.
The Revenue has issued a special leaflet to clear up any 'confusion' and has stated that tickets for events taking place before January could be sold 'in accordance with current practices'.
The VAT rate will apply to tickets for comedy shows, which are also classed as live theatrical events.
There will also be a 13.5pc VAT charge on booking fees, ticket agents' commission and promoters' fees.
Holohan Event Management, which has worked on festivals like Electric Picnic and Hi-Fi Ireland, said the cost of tickets could rise by another €20 if gardai introduce charges for providing the security outside the perimeters of venues.
"Ultimately any increase in charges is going to go back on the ticket because the promoter is going to try to maintain his level of margin," said the company's chairman Gar Holohan.
Concert promoters have always paid for the cost of garda security at events, but under the Garda Siochana 2005 Act, they are liable for the cost of garda services outside the perimeter.
Mr Holohan said negotiations would be taking place on the charges.
"You're talking about for the Electric Picnic next year, the Government will be taking in the region of €700,000 in VAT. And if you look at that, how can you then justify €100,000 going out to the Gardai as well?" he said.
According to the Revenue, the new VAT charge will not apply to events such as theatre plays and operas, even though food and alcoholic drinks are served at the venues.
This is because the food and drink are not permitted to be consumed during the performance.
(WTF?)
The VAT charge will not be applied to events where only cold snacks, sweets and soft drinks can be consumed.
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