Arts groups want performance VAT waived

THE Government is damaging the arts sector by hitting non-profit groups with hefty tax bills for performances by international artists in Ireland, arts campaigners said yesterday.

Organisations from the world of theatre, dance and opera said the 21% VAT on fees paid to performers who do not live in the Republic of Ireland was leaving audiences short changed.

Tania Banotti, chief executive of the Theatre Forum, called upon Finance Minister Brian Cowen to amend the 2002 Finance Act to remove the VAT for non-profit groups.

She said: “It is a real tax on international artistic exchange and we have lots of great festivals around the country who are finding it very difficult to pay this 21% charge. This isn’t a charge that applies to sports people like Tiger Woods or anyone else who appears in this country. It is purely a 21% VAT charge on international performing artists when they come to Ireland.”

The lobby group, Theatre Forum, said many leading arts organisations, such as the Dublin Theatre Festival, Galway Arts Festival, Wexford Festival Opera, and many smaller community-based groups are being hard hit financially by the regulation.

“The only way this can be solved is through an amendment to the Finance Bill so what we are looking for on Budget Day, or when this Finance Bill is presented to the Dáil, is for this VAT to be waived for not-for-profit organisations,” Ms Banotti said.

She said theatres like An Grianan in Letterkenny looking to work with artists based in Derry would also be hit with the 21% charge.

Pat O’Byrne, board director of Opera Theatre Company, said the group was being forced to pay the VAT on any artist who travelled from Northern Ireland to perform with them in the Republic.

The 2002 Finance Act was drawn-up through the Government’s implementation of an EU Directive. But Theatre Forum highlighted a provision in the directive for exemptions on cultural grounds which are being used in a number of EU countries to reduce VAT.

Loughlin Deegan, the chief executive of Dublin Theatre Festival, said the festivals were ways for the Government to bring other major international cultural acts into the country.

The Dublin Theatre Festival has been hit with a tax bill on foreign performers for €100,000 for 2003-2005. “Our budgets include up to €65,000 a year for VAT on foreign artists, which essentially means that that will be two large theatre shows which we can’t bring into the country as a result of having to pay this Bill,” Mr Deegan said.