Performing at, hosting or promoting a live musical
People involved with live musical and theatrical events are subject to different VAT treatment depending on the nature of their involvement, and the type of venue. For example, a performer whose turnover exceeds €37,500 in any 12-month period must charge VAT at the standard rate on his or her fee. Ticket sales for a live performance may be liable to VAT at the reduced rate, if substantial food or alcoholoic drink are available at the venue. Otherwise, the ticket sales may be exempt from VAT.
See a comprehensive guide to the VAT issues involved in staging, promoting and performing in live events.
Set out below are a number of common questions, and brief answers to each.
Where a promoter pays the owner of a licenced premises for permission to stage a live event, and provides admission (by ticket & at the door), who accounts for VAT on the tickets/admission?
The owner of the premises is the licensee and is deemed to be the promoter of any event held on the premises during the subsistence of that licence. The owner is therefore liable to account for VAT on the total amount of money paid by those admitted to the event together with any other consideration (e.g. advertising, sponsorship, etc.) received or receivable in connection with the event. Any amount payable to a promoter or performer (e.g. their share of the 'door') is paid to them by the licensee from the total money received. A VAT registered promoter or performer must issue a VAT invoice to the licensee, and account for the VAT, in respect of their share. This arrangement also applies if the event takes place in a room in the licenced premises separate from the area where alcohol or food is served.
I am a musician resident in a country outside Ireland. If I perform in Ireland, do I have to register for VAT?
The general position is that, as a non-resident (non-established) musician, you do not have to register for VAT, although VAT is still due on your performance fee. The person who commissions your performance, whether this is a promoter or the owner of the premises where the performance is to take place, is liable to account for the VAT that you would have charged had you been registered for VAT. In the case of non-resident promoters, this will mean that they have to register for VAT instead. The rate of VAT on a musical or theatrical performer's services is the standard rate . If the event or concert itself is liable to VAT, then the promoter, etc. will be able to claim a credit for this VAT.
We are a charity organising a fund-raising concert. Do we have to account for VAT on the ticket sales?
The general position is that charities are regarded as not being in business for VAT purposes. This means that they do not have to charge VAT on any supplies they make, including selling tickets for a fund-raising event. However, it is important to note that a charity will be obliged to pay any VAT charged to it in the organisation of the event, and will have to register and account for VAT on any performance fees charged by non-resident performers. This VAT cannot be reclaimed by a charity, regardless of the nature of the event.