The promoters of an arts festival pay €10,000 to a UK comedian to do a stand-up gig in a local venue. Patrons can buy and consume drink during the performance. Tickets to the gig are liable to VAT at 9%.
The promoters must pay €2,100 VAT on the comedian’s fee to the Irish Revenue. Because the gig is a taxable gig, the promoters can take a matching deduction for the VAT. No net VAT cost arises.