Dáil Éireann debate -
Tuesday, 18 Nov 1997

Vol. 482 No. 8

Written Answers. - VAT Charges.

Trevor Sargent

Question:

149 Mr. Sargent asked the Minister for Finance if he will give details of the effects of the EU directive regarding veterinary treatments which is expected to increase VAT on treatments from 12.5 per cent to 15 per cent in view of the fact that there is no VAT on medical treatment for humans; and if he will ensure that this situation will pertain for animals in view of the fact that people who find injured animals will be dissuaded from attending to their needs if they are required to bear the cost of VAT in return for their mission of mercy to a vet. [19342/97]

Minister for Finance (Mr. McCreevy):

The position is that, in common with most agricultural services, veterinary services are taxed in Ireland at the reduced rate of 12.5 per cent. This complies fully with the EU rules governing rates, including those regarding reduced rating, contained in the EU Sixth VAT Directive. Under that directive, the minimum level of the standard rate is set at 15 per cent.

I can confirm that hospital, medical and dental services generally are exempt from VAT as required by the EU Sixth VAT Directive. This means that VAT is not charged on the services supplied but there is no right of recovery in relation to VAT inputs.

I have no plans to increase the VAT rate which applies to veterinary services. I am not aware that the European Commission has made any proposals for a directive which would require an increase in the rate on such services.