Arthur Spring
Question:6. Deputy Arthur Spring asked the Minister for Finance if he has considered reducing the VAT on newspapers to a similar level as seen in Northern Ireland; and if he will make a statement on the matter. [54753/12]
View answerWednesday, 5 December 2012
Questions (6)
Written answers
Any proposed changes in VAT must be considered in the context of the EU VAT Directive, with which Irish VAT law must comply. The zero rate of VAT applies to the supply of newspapers in the UK, as well as in Belgium and Denmark. The VAT Directive provides that where Member States applied a zero rate of VAT to goods and services on 1 January 1991 they are entitled to retain those zero rating provisions, but cannot introduce any new ones. It is under this provision that the UK applies a zero rate to sales of newspapers as they applied the zero rate to the supply of newspapers on 1 January 1991. In the same way Ireland applies the zero rate to foods and medicines because the zero-rating provision dates back to 1991. However, as Ireland did not apply a zero rate to newspapers on 1 January 1991 we are not in a position to apply a zero rate to such supplies.
I would draw to the Deputy’s attention, however, that the VAT rate on newspapers was reduced from 1 July 2011 in the Finance (No. 2) Act 2011 from the 13.5% reduced rate to the new lower reduced rate of 9%. This VAT reduction was welcomed in general by the print media at the time.