Robert Dowds
Question:84. Deputy Robert Dowds asked the Minister for Finance if VAT is charged on the purchase of a second-hand touring coach where the coach has previously been registered here. [10844/13]
View answerThursday, 28 February 2013
Questions (84, 85)
Robert Dowds
Question:85. Deputy Robert Dowds asked the Minister for Finance the reason the operators of coach touring companies here cannot register for VAT, and therefore cannot apply to reclaim VAT in the normal way. [10845/13]
View answerWritten answers
I propose to take Questions Nos. 84 and 85 together.
The provision of domestic coach touring services is exempt from VAT. This means that a person who provides a coach tour service does not register for VAT and cannot recover VAT incurred on goods and services, such as tyres and mechanic charges, used for the purposes of the person’s tour service. However, there is a VAT Refund Order (S.I. 266 of 2012) under which coach operators who are exempt from VAT may, subject to the conditions in the Order, be entitled to a refund of the VAT paid on touring coaches that are no more than 2 years old and are within specified dimensions. A coach operator, who meets the criteria of the Order, can complete a form VAT 71 that is available on the Revenue Commissioners website.
The question of whether VAT will be charged on the supply of an Irish-registered second-hand touring coach depends on whether the seller is registered for VAT or not. However, secondhand coach sellers are generally exempt from VAT and in such case VAT would not be charged on the resale of a coach.