Dáil Éireann Debate, Wednesday - 17 October 2012
81. Deputy Jonathan O'Brien asked the Minister for Finance if he will provide a breakdown of the cost to the Exchequer should primary and post primary schools that qualify for the capitation grant be made exempt from value added tax when paying for service utility and service charges. [44968/12]
View answer82. Deputy Jonathan O'Brien asked the Minister for Finance if he will provide a breakdown of the cost to the Exchequer should primary and post primary schools that implement the DEIS’s recognised curriculum be made exempt from value added tax when paying for service utility and service charges. [44969/12]
View answer83. Deputy Jonathan O'Brien asked the Minister for Finance if he will provide a breakdown of the cost to the Exchequer should primary and post primary schools be made exempt from value added tax when paying for school text books. [44970/12]
View answer84. Deputy Jonathan O'Brien asked the Minister for Finance if he will provide a breakdown of the cost to the Exchequer should the 3,305 primary schools and 4,034 second level schools aided by the DEIS be made exempt from value added tax when paying for service utility and service charges. [44971/12]
View answer85. Deputy Jonathan O'Brien asked the Minister for Finance if there are EU regulations that prohibit the introduction of amendments to existing legislation that would exempt primary and secondary schools from paying VAT. [44972/12]
View answer86. Deputy Jonathan O'Brien asked the Minister for Finance if he will provide a breakdown of the cost to the Exchequer should DEIS band one and two schools be made exempt from value added tax when paying for service utility and service charges. [44973/12]
View answerI 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.
