VAT on events

joess

Couple questions on how VAT works.

We'll just say for example a theatrical performance for an international act.
For an Irish act it'd be simple: you pay them the performance fee plus VAT (at 23%) for the service provided and they pay that to the VAT man, easy.
For an international act it seems like the promoter putting on the event pays them the performance fee but then the promoter owes the VAT here and must register for VAT even if nowhere near the threshold. All good so far.

We'll say the act cost 1000 euro, VAT of 23% would be a 230 liability.

Bit confused on if this count as input tax or not? (as it's an expense but hasn't been paid)
Anyone want to break this down to the basics for me?

Next part of my confusion:

Admissions to live theatrical or musical performances (where no facilities are available for the consumption of food or drink during all or part of the performance), and admissions to sporting events, are exempt from VAT.

Admissions to live theatrical or musical performances where facilities are available for the consumption of food or drink during all or part of the performance and admissions to certain exhibitions normally held in museums and art galleries are liable to VAT at a second reduced rate from 1 July 2011.

(second reduced rate being 9%)

The difference between the two being whether or not food/alcohol is on sale. Just going with a super simplified set up for these examples but we'll just say the promoter has the choice of whether or not they'll be on sale and thus whether the admission fee is exempt or not.

Let's say 300 people show up and pay 10 euro entry.
So 3000 gross from entry fees.
No facilities for food/drink = VAT exempt = 0% of 3000 = no output tax.
Facilities for food/drink = VAT at second reduced fee = 9% of 3000 = €270 output tax.

Was so confused on this and was working on the output being taken away from input tax and was wondering why it seemed to make more sense to charge VAT than not charge VAT, but this is completely wrong I now believe.

Anyone have any ideas? Does the 230 count as input or not?

Found this PDF while searching theatreforum dot ie/uploads/media/VAT_Fact_Sheet_-_October_2008.pdf (the rates are wrong due to it being outdated so ignore that much) note the "non established performers" section which seems to imply the 230 would count as input.

(bonus question: if you buy equipment VAT free from amazon or whoever would you just ignore this for VAT purposes? will be getting an accountant but trying to wrap my head around this in the meantime, any help is greatly appreciated!)

Thanks!

exaisle

Get an accountant now rather than rely on advice received here, which may or may not be correct.

VAT is a complex issue, so leave it to a professional.

Mods: Perhaps move this to Taxation forum.