Vol. 492 No. 1
274 Mr. Farrelly asked the Minister for Education and Science if he is prepared to support the abolition of VAT on equipment purchased by primary and secondary schools; and if he will make a statement on the matter. [13558/98]
The position on the issue of schools paying VAT on purchases is governed by EU VAT law, with which Irish VAT law must comply.
In accordance with the EU Sixth VAT Directive, schools and other educational establishments are exempt from VAT. This means that such bodies do not charge VAT on goods or services that they supply but, as a necessary corollary, they are unable to recover the VAT on goods or services that they receive.
This is the situation which obtains throughout the European Union and it is not open to the Minister for Finance to depart unilaterally from this position.
