Vol. 432 No. 3
13 Mr. Cox asked the Minister for Finance if he will use the power already conferred on him by the Finance Acts to make a Statutory Instrument for the refund of VAT payments in respect of equipment provided for schools by parents, parents associations, or other benefactors where such equipment is wholly and exclusively for use by the school, is duly vouched for by the school authorities and is certified by the Minister for Education.
The Deputy will be aware that section 20, subsection (3), of the VAT Act empowers me to make refund orders in respect of VAT borne which does not qualify for deduction in the normal way, subject to whatever conditions are considered necessary. Some existing refund schemes operate for social and philanthropic purposes, for example, the scheme for certain medical equipment purchased by voluntary subscription.
The possibility of making a VAT refund order in relation to gifts or donations of equipment for schools was discussed at length during the Committee Stage of the recent Finance Bill. Deputies on both sides of the House showed a considerable amount of interest in the idea and, for that reason, I am giving the matter some further thought.
The reason I tabled this question is that the Minister gave a commitment on Committee Stage of the Finance Bill, in response to my amendment, to give the matter some further thought. As he pointed out, it was commented on positively from all sides of the House. On Committee Stage the Minister undertook to give further consideration to giving a VAT refund. May I ask what thought he has given to the matter during the intervening time?
Debate on the Finance Bill was concluded only last Thursday night in the Seanad. I will certainly look at the points raised during the debate. I do not think it would suit the Deputy if I gave inadequate consideration to the matter and I am sure he will await my proper consideration of it. One has to consider whether paying through the VAT system for something which is really a capitation rate matter is the best way of doing things. One has also to take into account that this may be of benefit only to schools in particular categories. I am not against examining the possibility of giving a VAT refund in this area. There is a similar provision for voluntary bodies. The Deputy made some valid arguments which I accept. However, I would be concerned that people would only collect money for good causes, charities etc. in order to get a VAT refund. One has to try to protect the system. I will look at the valid points made in regard to this matter.
