National Car Test

Dáil Éireann Debate, Tuesday - 17 December 2013

Tuesday, 17 December 2013

Questions (156)

Ciara Conway

Question:

156. Deputy Ciara Conway asked the Minister for Finance if his attention has been drawn to the fact that a national car test incurs VAT at the standard rate of 23%; his views that given that the NCT is required by law it might be more appropriate for a reduced rate of VAT to be applied; if he will consider a reduction to this effect; if he will provide in tabular form the value to the Exchequer of the NCT; the amounts gathered in VAT annually for each of the past five years; and if he will make a statement on the matter. [54180/13]

Written answers

Minister for Finance

I am advised by the Revenue Commissioners that fees for car testing under the National Car Testing regime are liable to VAT at the standard rate, currently 23%. This information is available on the Revenue website and in addition, the website of Applus+ Car Testing Service Ltd states that both the full test fee and the re-test are inclusive of VAT. The VAT rating of goods and services is subject to the requirements of EU VAT law with which Irish VAT law must comply. The EU VAT Directive does not allow a reduced VAT rate to apply to the supply of car testing services. The charge to VAT applies regardless of whether or not a service is required by legislation.

With regard to the amount of VAT collected on NCT car tests, as the information furnished on VAT returns does not require the yield for a particular sector or sub-sector of economic activity to be identified, the amount of VAT collected on NCT car tests cannot be identified by Revenue.