I propose to take Questions Nos. 81 to 86, inclusive, together.
Paragraph 4(3) of Schedule 1 to the VAT Consolidation Act 2010 provides an exemption from VAT for the provision of children or young people’s education by establishments recognised by the State. Irish VAT law is guided by the EU VAT Directive, with which it must comply, and this provision mirrors Article 132, paragraph 1(i) of the VAT Directive, which provides that EU Member States must exempt from VAT such education. VAT exemption in this context means that schools do not charge VAT on the services they supply but cannot recover VAT on the goods and services that they purchase. As such, schools cannot claim back the VAT paid by them for service utilities or service charges. VAT law relates to particular goods and services. In this respect, the VAT exemption for education must apply to all providers of school education. It is not possible to distinguish between the various forms of school providing that education. As it is not possible under Irish or EU VAT law to exempt schools from paying VAT on their inputs, the various costings outlined in the Deputy’s questions cannot be provided. However, I would point out that a 0% VAT rate applies to the supply of books and as such there is no VAT charged on school text books being purchased by schools.