I am advised by the Revenue Commissioners that the supply of dog grooming services is liable to VAT at the standard rate, currently 23 per cent. Paragraph 21(3) of Schedule 3 to the Value-Added Tax Consolidated Act 2010 provides that the supply of services by a veterinary surgeon in the course of their profession is liable at the reduced rate of VAT, currently 13.5%. Where a veterinary surgeon carries out a dog grooming service as part of a veterinary procedure, such as treating an illness or disease, the dog grooming is considered part of the veterinary procedure and the entire procedure is liable to VAT at the reduced rate. However, where a veterinary surgeon provides a dog grooming services as a supply that is distinct from a veterinary procedure the service is liable to VAT at the standard rate, currently 23%.
I am further advised by the Revenue Commissioners that there is no inconsistency between the VAT Consolidation Act 2010 and a Revenue leaflet on VAT for veterinary services. The Revenue leaflet deals with veterinary professionals, including veterinary surgeons, who provide services of a kind normally provided by veterinary surgeons. The leaflet lists dehorning of cattle and shodding of horses as examples of supplies made by veterinary professionals. The leaflet points out that a veterinary professional who is also engaged in other business activities is liable for VAT on all his or her activities. Dog grooming is considered as one such other business activity. In addition, the VAT rates database on the Revenue website lists dog grooming as a service that is liable for VAT at the standard rate.
The VAT rating of goods and services is subject to the requirements of EU VAT law with which Irish VAT law must comply. While the EU VAT Directive provides for the possibility of applying a reduced of VAT to the supply of certain goods and services, the supply of dog grooming services is not one that could have a reduced rate applied to it.
