Vol. 538 No. 3
182 Ms McManus asked the Minister for Finance if, in view of the hardship being caused to elderly people paying 21% VAT on their annual maintenance fee for their alarm unit systems, he will ensure the reduction of this VAT rate; and if he will make a statement on the matter. [17964/01]
The VAT rating of goods and services is largely subject to the requirements of EU VAT law, with which Irish VAT law must comply. While we can maintain the zero rating on those goods and services which were zero rated before 1 January 1991, we cannot introduce any new zero rate of VAT and cannot therefore relieve such services as referred to by the Deputy. While the directive provides for reduced rating of certain goods and services in certain circumstances, none of these apply to the provision of alarm monitoring services. We cannot therefore apply a reduced rate to the provision of this service, which is subject to the standard rate of VAT at 20 per cent.
I would add that under the Value Added Tax (Refund of Tax) (No. 15) Order, 1981, it is possible to obtain a VAT refund in respect of the purchase of a pendant alarm system, as it is considered a medical device for the purpose of this refund Order. Applicants should contact Revenue Commissioners, VAT Repayment (Unregistered Section), Kilrush Road, Ennis, County Clare.
