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Dáil Éireann Debate, Wednesday - 18 April 2012

Wednesday, 18 April 2012

Questions (95, 96)

Michael Healy-Rae

Question:

88 Deputy Michael Healy-Rae asked the Minister for Finance if he will consider removing VAT from eBooks in the interest of making education more affordable for parents who are struggling at present trying to balance their household budgets; and if he will make a statement on the matter. [19104/12]

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Written answers

I am advised by the Revenue Commissioners 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 Ireland the zero rate applies to printed books, including atlases, children's picture, drawing and colouring books and books of music. Under the EU VAT Directive, all digitised publications, regardless of their rate when printed (for example, a book liable at zero rate), are treated as the supply of a service liable at the standard rate of VAT. E-books, online newspaper subscriptions and online information services purchased via download over the Internet are also considered the supply of services liable for VAT at the standard rate. There is no option under EU VAT law to apply the zero rate to e-books.

Joe Higgins

Question:

89 Deputy Joe Higgins asked the Minister for Finance the basis for having three differing rates of VAT on the internment of ashes 23%, cremation plots 13.5% and burial plots 0%; if he will consider revising the rates charged on the internment of ashes and cremation plots and bring them in line with the zero rate of burial plots. [19196/12]

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I am advised by the Revenue Commissioners that the VAT rating of goods and services is subject to the requirements of EU VAT law with which Irish VAT law must comply. The VAT rate depends on the nature of the good or service supplied and must accord with the EU VAT law. Irish VAT law provides that the following are exempt from VAT:

the provision of services by a funeral undertaking;

grave digging services; and

the sale of cremation plots and burial plots from a cemetery that was opened more than 5 years prior to the date of sale.

Some fees charged by cemeteries are liable to VAT. These include:

Opening and Reopening fees: These fees are in the nature of permission granted by a cemetery for a specified grave in the cemetery to be dug to receive an interment of ashes or a coffin. Such fees are liable at the standard rate of 23%.

Permit fees: These fees are in the nature of a permission to erect a memorial (typically a headstone and surround) on a grave. Such fees are liable at the standard rate of 23%.

Plot sales: The sale of cremation plots and burial plots from a cemetery that was opened within 5 years prior to the date of sale. Such fees are liable at the reduced rate of 13.5%.

The VAT issues raised by the Deputy are explained further in the Revenue publication VAT Guidance Note for Public Bodies (eBrief 56/2010) available on the Revenue website www.revenue.ie.

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