Bernard Allen
Question:104 Mr. Allen asked the Minister for Finance if he will remove VAT on hospital equipment purchased through public donations.
Written Answers. - VAT on Hospital Equipment.
Because new zero rates of VAT are prohibited under EC law, I cannot remove VAT from hospital equipment, irrespective of how its purchase has been financed.
Medical equipment, instruments and appliances are generally liable at the standard rate of VAT, which is being reduced to 21 per cent on 1 March. Expenditure on such items is, for the most part, financed by the State where publicly funded hospitals are concerned. However, in the case of certain medical equipment donated to hospitals by voluntary fund raisers, a refund scheme exists to give back the difference in VAT between the standard rate and the low 10 per cent rate.
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 sucessfully.