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Dáil Éireann debate -
Wednesday, 10 Nov 1999

Vol. 510 No. 4

Written Answers. - VAT Refunds.

Ivor Callely

Question:

25 Mr. Callely asked the Minister for Finance if he will review the special VAT refund scheme on the purchase of new medical equipment purchased by voluntary contributions with a view to reducing the regulation that the special scheme only deals with the cost of equipment over £20,000 exclusive of VAT; and if he will make a statement on the matter. [22585/99]

The Deputy is, I believe, referring to the Value Added Tax (Refund of Tax) Order, 1992. This allows for the refund of VAT in respect of qualifying medical equipment purchased through voluntary donations. The medical equipment purchased has to be approved by the Minister for Health.

This refund order amended an earlier scheme introduced in 1987, where only a part of the VAT paid on qualifying medical equipment purchased through voluntary donations was refunded. This refund scheme was introduced in recognition of the valuable work carried out by fund raising groups in the medical area. I am fully supportive of this valuable work.

The scheme aimed to provide relief in respect of the purchase of sophisticated and expensive items of medical equipment. It was considered that the £20,000 threshold, exclusive of VAT, was a reasonable demarcation fine to distinguish this type of equipment from more routine items of hospital equipment.
The Deputy will appreciate that inflation has reduced the value of the threshold in real terms since the scheme was amended in 1992. All the indications are that the scheme has worked well to date and therefore I am reluctant to make any changes at this stage.
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