Dáil Éireann debate -
Thursday, 25 Jul 1996

Vol. 468 No. 4

Written Answers. - VAT on Videos.

Síle de Valera

Question:

67 Miss de Valera asked the Minister for Finance the plans, if any, he has to address the position pertaining to the current 21 per cent VAT on videos in view of the fact that indigenous video companies concentrating on video release are subjected to this rate of VAT and are therefore at a disadvantage where foreign companies are concerned. [15938/96]

Minister for Finance (Mr. Quinn)

I have no plans to alter the current situation.

The VAT treatment of the sale and rental of videos is governed by European VAT law with which Irish law must comply. The EU Sixth VAT directive precludes the application of a reduced rate for videos, because they are not included in the list of goods and services in respect of which member states have the option of applying such a rate.

Furthermore, I must point out to the Deputy, that all videos sold or rented in the State by registered traders, whether they are produced in the State or elsewhere, are subject to VAT at 21 per cent.