I would like to explain that charities and non-profit groups engaged in non-commercial activity are exempt from VAT under the EU Sixth VAT Directive, with which Irish VAT law must comply. This means they do not charge VAT on the services they provide and cannot recover VAT incurred on goods and services that they purchase. Essentially only VAT registered businesses which charge VAT are able to recover VAT. Accordingly, it is not possible under EU law to change the current VAT treatment of charities.
I presume that the Deputy is proposing the introduction of a VAT refund order for voluntary group, community group and charities. Refund Orders have in the past been used in a limited way to provide refunds of VAT on certain aids and appliances for the disabled and on medical equipment donated voluntarily to hospitals. These orders are focused and are designed to target particular sectors. However, it is no longer possible under EU law to introduce new schemes which would allow for VAT refunds to exempt bodies or non-taxable persons. However, I would add that the tax code currently provides exemption for charities from Income Tax, Corporation Tax, Capital Gains Tax, Deposit Interest Retention Tax, Capital Acquisitions Tax, Stamp Duty, Probate Tax and Dividend Withholding Tax.