Written Answers. - VAT on Military Equipment.

Martin Cullen


18 Mr. Cullen asked the Minister for Defence if his attention has been drawn to the fact that the Defence Forces must pay VAT at a rate of 21 per cent on the purchase of ammunition and defence stores; and if he will make a statement on the matter.

In common with other Government Departments this Department is liable for VAT on all purchases including purchases abroad. It is likely, however, that if VAT on military equipment were zero-rated, the net amount available for the purchase of ammunition and defensive equipment would not change.