Seán Haughey
Question:232 Mr. Haughey asked the Minister for Finance if he will introduce a fairer VAT refund mechanism for charities as advocated by the Irish Charities Tax Reform Group; and if he will make a statement on the matter. [13795/02]
Written Answers. - Tax Rebates.
I am aware of the campaign currently being run by the Irish Charities Tax Reform Group. The current VAT treatment of charitable organisations is based on EU VAT law, with which Irish law must comply. Under the Sixth VAT Directive, a wide range of charitable and voluntary activities are deemed to be exempt for VAT purposes. This means that the organisations involved do not charge VAT on their services but, as a necessary corollary, they are unable to recover the VAT they bear on the goods and services that they purchase in the course of their activities. There is no provision in EU VAT law for any refund of VAT to exempt bodies such as those represented by the Irish Charities Tax Reform Group.
Questions Nos. 233 to 235, inclusive, answered with Question No. 229.