Vol. 500 No. 1
190 Mr. Perry asked the Minister for Finance if his attention has been drawn to the fact that the North-West Hospice has to pay VAT charges (details supplied); if he will consider a waiver or VAT exemption for hospice units in view of the huge voluntary commitment involved and the fact the State is gaining considerably on VAT payments; and if he will make a statement on the matter. [3186/99]
I am aware of the excellent work which is being carried out by hospices. However, the VAT treatment of hospices is governed by EU VAT law with which Irish law must comply. This provides that bodies like hospitals and hospices are exempt for VAT purposes. Exempt status means that, while hospices do not charge VAT on the services that they provive, they are unable to recover the VAT charged on the goods and services that they buy in the course of their activities. As a general rule, VAT is only recoverable by VAT-registered persons.
In relation to VAT incurred on expenditure by the North-West Hospice, there is no provision in VAT law which would enable the VAT payable to be either refunded or waived.
