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Tax Code.

Dáil Éireann Debate, Tuesday - 11 March 2008

Tuesday, 11 March 2008

Questions (101, 102, 103, 104)

James Bannon

Question:

168 Deputy James Bannon asked the Tánaiste and Minister for Finance if he will introduce a 0% VAT rate on the purchase of defibrillators as the current rate is a tax on local community voluntary lifesaving efforts; and if he will make a statement on the matter. [10123/08]

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Olwyn Enright

Question:

171 Deputy Olwyn Enright asked the Tánaiste and Minister for Finance his views on the reduction of VAT on defibrillators from 21% to 13.5 %; if his Department will consider same; and if he will make a statement on the matter. [10211/08]

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Written answers

I propose to take Questions Nos. 168 and 171 together.

The position is that in matters relating to the VAT rating of goods and services, I am constrained by the requirements of EU VAT law with which Irish VAT law must comply. In this regard, I would point out that the rate of VAT that applies to a particular good or service depends on the nature of the good or service and not on the status of the consumer. In this case, there is no provision in EU law that would permit the removal or reduction of VAT based on the social or economic status of the consumer. In relation to the VAT rate that applies to defibrillators, the position is that under the 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 new goods and services. The zero VAT rate cannot therefore be applied to defibrillators which are subject to the standard rate.

In addition, Member States may only apply the reduced VAT rate to those goods and services which are listed under Annex III of the VAT Directive. While Annex III does include the supply of medical equipment for the exclusive personal use of a disabled person, it does not include defibrillators for general use. The reduced rate cannot be applied to the supply of defibrillators. Therefore the only rate of VAT that can apply to the supply of defibrillators is the standard VAT rate which in Ireland is 21%.

James Bannon

Question:

169 Deputy James Bannon asked the Tánaiste and Minister for Finance if he will abolish VAT on all amenities being provided by local authorities, for example, swimming pools and all other leisure facilities; and if he will make a statement on the matter. [10124/08]

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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. In relation to the issue of applying an exemption of reducing VAT rates for a certain category of consumer, in this case local authorities, the position is that the rate of VAT which applies to a particular good or service is determined by the nature of the good or service, and not by the status of the consumer. It would not be possible to reduce or remove VAT on goods purchased by local authorities. In relation to introducing a VAT refund the position is that local authorities engaged in non-commercial activity are exempt from VAT under the EU VAT Directive. 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 eligible to charge VAT on the goods and services they provide can recover VAT on the goods and services they purchase.

Richard Bruton

Question:

170 Deputy Richard Bruton asked the Tánaiste and Minister for Finance, further to Parliamentary Question No. 73 of 28 February 2008, the number of annual passes and the number of monthly passes which make up the total number quoted for tax relief on season tickets. [10194/08]

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The numbers of Travel Passes, as quoted in Parliamentary Question No 73 of 28 February 2008, broken down into annual and monthly passes are as follows:

Monthly Ticket

Annual Ticket

Total number of Tickets

1999

779

115

894

2007

16,447

24,941

41,388

Question No. 171 answered with Question No. 168
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