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Dáil Éireann debate -
Tuesday, 28 Mar 2000

Vol. 516 No. 6

Written Answers. - Tax Rebates.

John Perry

Question:

260 Mr. Perry asked the Minister for Finance if he will give a 100% VAT refund to a centre (details supplied) in County Sligo in view of the fact this facility is community based and the financial projection is based on an economic based company who registered for VAT; if his attention has been drawn to the fact that all sales and income generated is subject to VAT; if he will grant a full VAT refund as the company is only allowed to claim 20% VAT refund; and if he will make a statement on the matter. [8880/00]

I am informed by the Revenue Commissioners that the company in this case is a community based, non-profit making concern, established to promote Irish music and culture. In 1998 and early 1999 the company built a centre comprising a museum, classrooms and a concert hall together with a souvenir shop/snack bar. The income from the shop/snack bar is liable to VAT while the provision of the other facilities would not give rise to any taxable supplies. The company incurred VAT on the development of its premises.

Section 12(1) of the VAT Act, 1972, as amended, states that "in computing the amount of tax payable by him in respect of a taxable period, a taxable person may, in so far as the goods and services are used by him for the purpose of his taxable supplies, deduct VAT properly charged to him ..". In accordance with section 12 of the VAT Act, the VAT suffered on the building development is required to be apportioned with only the proportion relating to taxable supplies qualifying for allowance as input credit. On this basis 20% of the VAT suffered on the building development could be allowed as a deduction. I understand that the company is aware of the position. There is, therefore, no statutory basis on which the treatment sought by the Deputy could be based in this case.

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