Dáil Éireann Debate, Tuesday - 16 July 2013
300. Deputy Brendan Griffin asked the Minister for Finance if he will reduce the rate of VAT payable by ice cream parlours to 9% in recognition of the labour intensive nature of the business and the heavy dependency that such businesses have on tourism; and if he will make a statement on the matter. [35483/13]
View answerI am advised by the Revenue Commissioners that the standard rate of VAT, currently 23%, applies to the sale of ice cream, as it does to most confectionery and sugary foods. In this respect, ice cream parlours selling ice cream to customers must charge the 23% rate on the supply of ice cream. A reduction in the VAT rate on ice cream would lead to pressure to apply a similar reduction to the wider confectionary and sugary foods area which would be costly to the Exchequer. I therefore have no plans to change the VAT treatment of ice cream sold by ice cream parlours.
I would point out that where ice cream is provided as part of a meal by a caterer, such as a restaurant, the meal, including the ice cream element, is liable to VAT at the 9% reduced VAT rate.
