Vol. 397 No. 9
95 Mr. Crowley asked the Minister for Finance his views on whether it is right and fair that machinery, instruments or applicances purchased for hospitals through public contributions should be subject to VAT of 23 per cent less a refund of 13 per cent.
VAT is a general sales tax which applies to the bulk of goods and services. Medical equipment, instruments and appliances are generally liable at the standard rate of 23 per cent. In the main, this expenditure is financed by the State where publicly funded hospitals are concerned. However, VAT Refund Order No. 20 provides for a reduction in the rate of VAT to 10 per cent on qualifying medical equipment donated to hospitals.
The refund scheme was established in recognition of the valuable work done by voluntary fund raising groups who raise significant amounts of money to finance purchases of specialised health equipment. I am satisfied that the scheme meets this objective successfully.
