The position is that the VAT rating of goods and services is subject to the requirements of EU VAT law with which Irish VAT law must comply. Under the EU VAT Directive, Member States may retain the zero rates on goods and services which were in place on 1 January 1991, but cannot extend the zero rate to other goods and services. As the supply of panic alarms was not subject to the zero rate on 1 January 1991 it is not possible to apply the zero rate to the supply of these goods or related services. There is no provision in EU VAT law that would allow for the abolition of VAT on the supply of panic alarms.
In addition, Member States are only able to apply the reduced VAT rate to those goods and services which are listed under Annex III of the EU VAT Directive. As the goods referred to by the Deputy and the associated monitoring services are not listed under Annex III it would not be possible to apply the reduced VAT rate to panic alarm systems or monitoring fees charged by service providers for socially monitored alarms. The purchase and monitoring of home security systems are therefore subject to the standard VAT rate of 21 per cent.
However, I would add that under the Value Added Tax (Refund of Tax)(No. 15) Order, 1981, it may be possible to obtain a VAT refund in respect of the purchase of a panic alarm system by or on behalf of a disabled person, as it may be considered a medical device for the purpose of this refund order. However, monitoring and maintenance fees are not recoverable.
In addition, the Deputy may be aware of the Scheme of Community Support for Older People operated by the Department of Community, Rural & Gaeltacht Affairs. The purpose of the scheme is to encourage and assist the community's support for older people by means of a community based grant scheme to improve the security of its older members. Funding under the scheme can be provided for small scale security equipment designed to strengthen points of entry to the dwelling; for security lighting; for smoke alarms and for the once-off cost of installing socially monitored personal alarm systems. Annual monitoring fees or maintenance fees associated with socially-monitored alarm systems are not provided for under the scheme.