Dáil Éireann Debate, Tuesday - 27 April 2004
258 Ms Enright asked the Minister for Finance his views on the payment of VAT by second level schools; if his attention has been drawn to the significant reduction this has in the grant for the science lab which he has paid to schools; and if he will make a statement on the matter. [11829/04]
View answerIn accordance with the sixth EU VAT directive and Irish VAT law, primary and secondary level schools and other educational institutions, are exempt from VAT. This means they do not charge VAT on the services they supply, but cannot recover VAT on the goods and services they purchase. Only VAT registered businesses which charge VAT are able to recover VAT, essentially. It is normal for State funded services, such as schools or hospitals, to bear VAT on their purchases. However, Exchequer funding for such services, including primary and secondary schools, takes account of VAT when allocations are being made by the Government. I understand from my colleague, the Minister for Education and Science, Deputy Noel Dempsey, that the proposed expenditure on science laboratory refurbishment for this year includes €2 million for immediate urgent refurbishment works and €10.5 million for equipment for junior science technology.
