asked the Minister for Finance if he will consider the removal of VAT from the operations of a restaurant which has been provided by a firm or organisation for its staffs where these operations are subsidised by the firm or organisation.
Ceisteanna—Questions. Oral Answers. - VAT Relief.
19.
An essential feature of the VAT system is its neutrality as between competing methods of supplying goods or services.
To provide exceptional relief from VAT for meals supplied by a subsidised staff restaurant would represent discrimination against unsubsidised or commercial restaurants and catering firms as these would continue to be liable to the tax. It would also be inequitable as between those who enjoy subsidised canteen meals and those who are customers of commercial restaurants. In the circumstances, I would not feel justified in agreeing to the Deputy's suggestion.
If these firms guaranteed to serve only their own staffs, would the Parliamentary Secretary recommend the reduction?
I could not.
It would not be fair.