John Ellis
Question:57 Mr. Ellis asked the Minister for Finance if he will introduce a provision in the 1995 Finance Bill to exempt hospice services from VAT payments on equipment. [5701/95]
Written Answers. - VAT on Hospice Services.
Mary Coughlan
Question:65 Miss Coughlan asked the Minister for Finance if he will exempt hospices from VAT; and if he will make a statement on the matter. [5427/95]
The VAT treatment of hospices is governed by EU VAT law with which Irish law must comply. This provides that bodies like hospitals and hospices are exempt for VAT purposes. Exempt status means that, while hospices do not charge VAT on the services that they provide, as a necessary corollary, they are unable to recover the VAT charged on the goods and services that they buy in the course of their activities. As a general rule, VAT is only recoverable by VAT-registered persons.
However, certain items of hospice equipment are already eligible for VAT relief under a special refund scheme which has been in existence for some years. In order to qualify for relief the equipment must be brought by voluntary subscription, must cost at least £20,000 exclusive of VAT and must be certified by the Minister for Health as being in the interest of the health services. The scheme was introduced as a measure of recognition of the work being done by voluntary groups who purchase sophisticated and expensive items of medical equipment which could not be accommodated within the normal Exchequer funding for the health services. I regret to have to advise the Deputies that I am not disposed to undertake any further expansion of this special scheme, in particular having regard to the provisions of EU VAT law which clearly specifies the tax status of these bodies and because of the wider implications, including cost, which a VAT concession would involve.
Finally, on a more positive note, I should add that it is open to hospices to seek funding from their local health boards in respect of day-to-day running costs. Furthermore, I understand that funding from the National Lottery may be granted in certain circumstances.