Call to axe arts VAT on foreign performers

The Government is damaging the arts sector by hitting non-profit groups with hefty tax bills for performances by international artists in Ireland, it was warned today.

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 Budget Day or when this Finance Bill is presented to the Dáil is for this VAT to be waived for not-for-profit organisations. That is what we are calling for today,” Ms Banotti said.