Michael D. Higgins
Question:176 Mr. M. Higgins asked the Minister for Finance if he has any plans for the removal of indirect taxation for school equipment and supplies; and if he will make a statement on the matter. [2264/00]
Written Answers. - School Equipment and Supplies.
The tax status of purchases by schools of school equipment and supplies is governed by EU VAT law, with which Irish VAT law must comply. The sixth EU VAT Directive designates education as exempt for VAT purposes. Exempt bodies do not charge VAT for the service they provide, but as a necessary corollary, they cannot recover the VAT they pay on goods and services they purchase and use.
Generally speaking, VAT can be recovered only by registered traders. It is not therefore open for me to provide for recovery of VAT by exempt bodies such as schools.