Festival fans to be hit with 13pc VAT on gig tickets

Zebra3

Beautiful, eh? :mad:

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 ****** 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 <snip>, 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.

The VAT charge will not be applied to events where only cold snacks, sweets and soft drinks can be consumed.

Michael Brennan

http://www.unison.ie/irish_independent/stories.php3?ca=9&si=1686229&issue_id=14630

Laredo

As bad as the added cost to festivals will be that is going to have a big effect on small gigs where cheap tickets are essential to get people in to see little-known artists.

The justification for the exemption for opera and theatre plays is farcical in the extreme.

garthv

Well it makes sense really, we are enjoying ourselves too much at these festivals so the government has to do something to stop it!

gazzer

I work in Revenue and i just heard about this proposed charge this morning... i am pi**ed off big time about this... That means tickets for the likes of EP are going to be hitting 200 euro and as Laredo said the artists who play small venues and try to charge as little as possible will be the most affected by this.

I wonder though will the prices for gigs in the Point go up in price for this as you are not allowed drink inside the main area.. Cant have one rule for plays and another for gigs.. then again nothing would surprise me.

My mates are going to be giving me a right bol**king when they hear this.

Garret

a bucketful of minus cool points to the government right there i tell ya

Nevyn

Only 13% ?
was is it not the luxuary rate of 21% which is what they charge on condoms ?
When did going to a concert or a gig stop being a luxuary ?

Gabriel

Iam not suprise at all!
and I tell you why and what:
they looked at the prizes of tickets ( f***ing expensive), and they have realized that people still pay for expensive tickets for festival no matter what!!! so they think........
why dont we put some taxes on them , anyway people here still gonna buy them and we can make some extra cash!!!;)
so i say ..... damn it !!! they are really clever!!!!:D

BrianD

So what would stop a festival putting all the food and drink into a separate compound (a giant food court) with free entry from the main festival arena? It could be promoted as a festival with free entry to a food court. Are pub gigs covered by this or did their lobby sort that out?

The festival promoter is already being charged VAT on all goods and services used at the event so I can't see why they are claimed that VAT is not being paid. Is there not already VAT included in the ticket service charges by the agencies?

It's just another stealth tax by the Government just like stamp duty.

Election next year ...

John

As if going to a gig wasn't expensive enough. Jerks.

ellenmelon

does the govt/revenue commission want us to hate them? cause i swear to god things like this just tip me over the edge a wee bit and make me effing angry!!

adebisi

Only one thing to do peeps, vote these fukkers out (or petition Inda Kinney & Pat Rabbite to make a large issue out of this) but SOMETHING has to be done.

We cant go on just accepting more hidden taxes and stealth charges, every time we just lay down and accept them, it gives 'em more clout to pull these kind of stunts.

franklern

BrianD wrote:

Election next year ...

What difference will it make if another bunch of arsehole politicians are voted in next year? These taxes will still keep coming, just under a different guise.

Smurfpiss

BrianD made a good point, there could be ways around this tax.
You could ban food and drink from any tents/main stages... just not enforce it.
I know i eat sweeties any time im at the panto!
Really pissed off about this too, though its odd that this is the biggest grevience that ive had with this government...

Mossy Monk

Smurfpiss wrote:

its odd that this is the biggest grevience that ive had with this government...

you are doing well then

lizzyrocker

I know other people have said this before, but why don't people save up to go to a proper foreign festival of their choice, get a budget flight and bring a tent, and get proper value and service for the price. I went to rock-am-ring this year and had a blast, and it cost me less than it would have to camp out at EP or ****** for a weekend.

The thing that depresses me is that people are going to keep paying these exhorborant prices, going to a gig that cost 49.50 a year ago, 55-65 this year and probably 75-85 euro next year after the promoters have added their cut on top of the vat.

I do feel sorry however for the promoters of the smaller gigs

Depressing

Zebra3

ellenmelon wrote:

does the govt/revenue commission want us to hate them?

In fairness, I'd assume this is a government instruction that the revenue simply carrys out.

lodgepole

It's typical of the Irish government to do this. They create a tax break which promotes something and when they see that something do well, they assume that they're losing money and jump in to get their piece of the pie. They did it with the film industry here and they fought back. The music industry should do the same.

garthv

lizzyrocker wrote:

I know other people have said this before, but why don't people save up to go to a proper foreign festival of their choice, get a budget flight and bring a tent, and get proper value and service for the price. I went to rock-am-ring this year and had a blast, and it cost me less than it would have to camp out at EP or ****** for a weekend.

Did that myself this year, went to Roskile in Denmark, had the best 6 days of my life!Well suggest anyone doing this instead of going to irish festivals

Fraggle Rocks

Ha, just got a leaflet in the post this morning from our Minister For Arts, John O' Donoghue, complete with large section on how he's championing the arts. Oh the irony

Gabriel

Go to concert in Italy or Spain !! Is cheaper , better line up, no rain and much more nice people !!!! dont offends but there are a lot of scumbags at festivals in Ireland !!
but keep it quiet..........maybe this people are reading this and come up with some taxes for festivals abroad.........sssssssssshhhhhhh!!!:D

kippy

A few things.
1. Contact your local representative about these charges if you feel so strongly about them.

2. Dont buy tickets for Irish gigs anymore, go abroad where you'll probably have a cheaper better time.

3. Get on the back of the promotors to reduce their cut which, as far as I am concerned is exorbatant anyway.

Ireland is the best place to hold a gig in the interests of making money for all involved since us mugs pay silly money for some tickets.

Kippy

PiE

Eh... is this a 13.5% rise in VAT?

Pretty sure all tickets were subject to VAT (between 13.5% and 21%, depending on the type of event) before this.

Smurfpiss

PiE wrote:

Eh... is this a 13.5% rise in VAT?

Pretty sure all tickets were subject to VAT (between 13.5% and 21%, depending on the type of event) before this.

no they were previously exempt from VAT.

Wertz

Oh right, so theatre and opera and other more highbrow entertainment venues remain exempt? Nothing to do with these bastard politicians hobbing nobbing at those venues at all then eh?
Tossers.

shnaek

The government has a commitment to stopping every from of enjoyable activity and every form of entertainment, and to moving or eliminating every form of entertainment from our towns and cities so citizens can be free to enjoy their houses without the bother of any noisy activity or services.

Government policy is that we live in housing estates in towns and cities with no local shops (just large chains on the outskirts), no sports facilities, no music venues, no skating, no ball playing, no noise, no nothing, no life.

BrianD

Smurfpiss wrote:

no they were previously exempt from VAT.

I think the VAT charges only related to the ticket agent charges. This is a classic case of government trying to disguise the real issues. There is no debate on the ludricous stamp duties (paid over and over again on the same property) or the very generous breaks given to those who can avail of tax breaks for building a hotel, multi story car park, mushroom farm or engage in the "equestrian industry". They deflect the glare towards the artist exemption tax - which many artists get a little from and a few do very well from. The same exemption is also used by American companies to get tax free royalties on intellectual properties. It's a fudge to distract you from the real issues.

the facts of the matter are:

- The major events industry is no longer the cash industry it used to be.
- Suppliers are VAT registered and trade on invoice
- Even most casual workers within the industry are asked to put in invoices with their PPS numbers on them.

Even if there was a huge black economy within the ents industry they are still pushing the VAT onto the punter.

I'd be interested to know how this effects gigs held in licenced premises.

lifegamer

Anywhere that someone can petition taxes? or is it best to go to a local councellor in the area?

Notice how the opera's main clientele are mainly upper class society who could afford this tax. The concert going audience is a lot younger, some students, some children, most young people....

Isn't screwing us over with housing and insurance and childcare/creche fees enough?

2nd richest economy in the EU (and believed to be 2nd in the world according to some reports)

People should not complain about it and then not vote or not register to vote, people should f*ck bertie and his pals out at the next general election and teach them the hard way!

I am involved in gigs and promotion as i'm sure there are a few here on boards and, I am very curious to know if this VAT will wind it's way back to venue fees and rental charges, making it more difficult to run cheaper gigs for upcoming bands wanting to play

Plus, where is this money going to? I would have no problem paying taxes if they bought hospital beds, improved infrastructure, eased traffic congestion, improved bus services, imporved broadband infrastructure.... All of which are in dire state of affairs

The taxes we pay already aren't being utilised to their potential at all..... and now they want TV licenese tax for PC's / computers with TV tuner cards, concert tickets, and i'm sure there are other taxes that they thought of...

One last point, where did the government get the time to think up these taxes on the amount of holidays they take?????

Toast

lifegamer wrote:

and now they want TV licenese tax for PC's / computers with TV tuner cards,

This is nothing new. Any premises with a device which is a tv tuner is meant to pay for the license. If they were trying to put the license on pcs or moniters WITHOUT a tuner I'd be angry. Is this the case?

regular john

I don't know if anybody else has heard this but somebody told me that there is going to be an additional cost on outdoor event tickets in 2007 due to a new tax on them.
It sounds outrageous to me but stranger things have happened. Somebody please say it aint so.

garthv

Aye,
Basically a 13% rise of ticket prices for events that serves food and whatnot.
Its not really outrageous considering we havent had to pay tax on tickets since 1987.