Vol. 493 No. 4
105 Mr. Callely asked the Minister for Finance the revenue generated by VAT on the purchase of hospital equipment in 1997; the VAT rate and criteria that is applicable on the purchase of hospital equipment, particularly if this equipment is purchased by a voluntary group or received as a gift; if he will consider an exemption of VAT on purchases of hospital equipment in these cases; and if he will make a statement on the matter. [16358/98]
The position is that VAT returns are not submitted to the Revenue Commissioners on a basis which would enable an estimate to be made of the VAT paid on hospital equipment.
In accordance with EU VAT law, which governs Irish VAT law, the rate applying to hospital equipment is, in general, the standard rate, which in Ireland is 21 per cent.
Under EU rules, hospitals and similar institutions are deemed to be exempt bodies. This means that they do not charge VAT on the goods and services they provide, but, as a necessary corollary, they are not entitled to recover the VAT expended on the goods and services which they purchase in the course of their activities. At this stage, it is not open to me to provide recovery rights in relation to items purchased by hospitals, even if financed by voluntary endeavour. In general, only VAT-registered businesses can recover the VAT on their inputs.
However, I am glad to be able to advise the Deputy that, for a number of years, a special refund scheme has been in operation whereby new medical equipment, excluding means of transport, purchased by voluntary contributions and donated to a hospital may qualify for a full refund of the relevant VAT. The cost of that equipment must be £20,000 or more exclusive of the tax. Details of the scheme can be obtained from the Revenue Commissioners, VAT Refunds (Unregistered) Section, Government Buildings, Kilrush Road, Ennis, Co. Clare, Telephone 1890-202033 (local call).
