asked the Minister for Finance if he will consider exempting all dental laboratories from VAT; and if he will state the current position in relation to negotiations concerning the new EC draft directive under which VAT would no longer be payable by dental technicians.
Written Answers. - VAT on Dental Services.
88.
The Commission of the European Communities submitted a proposal to Council late last year for an 18th Council Directive. The draft directive is concerned with seeking to abolish, in a number of stages, many of the derogations from the Sixth VAT Directive operated by member states of the Community. Ireland and certain other member states have derogated from the Sixth VAT Directive to apply VAT to the services of dental technicians and the supply of dental prostheses, which services and supplies are to be VAT-exempt under the final tax arrangements in the Community. The draft directive is, of course, concerned with many other issues besides and its implications for this country are currently being examined in my Department. I have no plans at present to make changes in the current VAT treatment of the services of dental technicians or the other activities under scrutiny in the draft directive. No discussions at Community level on the proposed directive have yet taken place. The arranging of such discussions is a matter, in the first instance, for the Presidency of the Council of the European Communities but it is expected that official discussions will be arranged shortly.