Vol. 451 No. 5
84 Mr. Haughey asked the Minister for Finance if the VAT due on an annual service contract for a photocopying machine purchased by a voluntary neighbourhood watch can be waived in view of the voluntary nature of this activity; and if he will make a statement on the matter. [6908/95]
The VAT treatment of voluntary organisations such as those referred to by the Deputy is governed by EU VAT law, with which Irish VAT law must comply. The Sixth VAT Directive provides that such bodies are exempt from VAT. This means that they do not charge VAT on the services which they provide in the course of their activities but, as a necessary corollary, they are not entitled to recover the tax borne on the goods and services which they purchase in the course of those activities. Generally speaking, VAT can be recovered only by VAT-registered businesses.
