Dances
Introduction
The promotion of dances is a taxable activity liable to VAT at the standard rate. Dances are treated as an ordinary part of the activities carried on by an accountable person in the course or furtherance of business. There are special arrangements for dances held on licensed premises.
General Rules
Where a dance is held on premises licensed for the sale of intoxicating liquor, the licensee is deemed to be the promoter of the dance. The licensee is deemed to have received the total amount payable in respect of admissions, is liable to account for the tax chargeable and, if not already registered, is obliged to register if annual receipts from taxable activities exceed or are likely to exceed €37,500.
Where a dance is held on premises which are not licensed for the sale of intoxicating liquor, the promoter of the dance is accountable for the VAT chargeable, subject to the normal VAT rules. The promoter is obliged to register and account for VAT where his or her annual receipts from taxable activities (including the promotion of dances) exceed or are likely to exceed €37,500.
Dances in Licensed Premises
Scope
Dances that are promoted in the course or furtherance of business come within the scope of VAT liability. 'Dances' includes all public dances, that is, functions or gatherings which include dancing, and which are open to the public on payment of an admission charge, or on pre-purchase of a ticket (for example, cabarets, supper dances, discos, socials, and dances run by sports clubs). It does not include private dinner dances, where admission is not open to the public, for example, wedding receptions. Dinner dances held in hotels or other licensed premises for fund-raising purposes and not in the course or furtherance of business (for example benefit dances organised by charities or clubs on an occasional basis) are also outside of the scope of the provisions. In these latter cases the hotelier or licensee is not regarded as the promoter of the dance and is, therefore, liable only in respect of the receipts relating to the services supplied - for example, meals, drinks, etc.
Dances promoted by non-licensees
Where a person other than the licensee promotes public dances on the licensee's premises liability for the VAT chargeable remains with the licensee. The promoter is not the person accountable for VAT in these circumstances. Accordingly, the licensee would need to ensure that s/he takes appropriate steps to ensure that s/he is in a position to make the appropriate returns and pay over the tax chargeable to the Collector-General. In this regard, since the promoter's records are subject to examination by Revenue officers, the licensee might consider agreeing with the promoter on right of access to the promoter's relevant records.
Taxable Amount
The amount on which tax is chargeable is the total consideration received in connection with the dance. This includes the amounts paid by those admitted to the dance together with any other consideration received in connection with the dance. As already mentioned, the obligation to account for the tax is the responsibility of the licensee, notwithstanding such amounts may be received or receivable by a promoter or other person.
Where persons are admitted to dances for amounts less than the face-value of the ticket or where no admission is charged (complimentary tickets) the normal VAT rules apply and only the amount actually payable will attract liability.
Deductible VAT
A VAT-registered licensee is entitled to take credit or deduction against his or her VAT liability for the VAT charged on goods and services purchased in connection with the dance. It is a requirement of the VAT system that to take credit or deduction, the VAT registered person must be in possession of proper VAT invoices made out to him or her. Subject to this requirement, the licensee would be able to take credit for VAT charged and invoiced on the printing of tickets, spot prizes, advertising, light, heat, bands or groups, and other qualifying expenditure connected with the dance.
Deductions are not allowable unless the invoices are made out in the name of the licensee. Where the expenses are incurred by and the charges are invoiced to somebody other than the licensee, deduction against the licensee's liability will not be allowed.
Dinner Dances
Receipts from admissions to dinner dances are liable at the standard rate, including the dinner element included in the charge. If there are separate charges 4 for the dinner and the dance and the payment of the charge for dinner is not a condition of admission to the dance, the dinner charge is liable at the reduced rate, and the charge for admission to the dance is liable at the standard rate.
Further Information
Enquiries regarding any issue contained in this Information Leaflet should be addressed to the Revenue District responsible for the taxpayer's affairs. Contact details for all Revenue Districts are available on the revenue website at: Contact Details
VAT Interpretation Branch,
Indirect Taxes Division,
Stamping Building,
Dublin Castle.
January 2010