VAT Rate Application

Dáil Éireann Debate, Tuesday - 8 April 2014

Tuesday, 8 April 2014

Questions (20)

Seán Kyne

Question:

20. Deputy Seán Kyne asked the Minister for Finance in the context of the review of the EU VAT directive and with regard to the campaign by MEPs, supported by national public representatives, if he will extend the favourable VAT terms which currently apply to marine-based rescue services to mountain rescue teams, and in consideration that the overall decision will be made by the relevant Council of Ministers, if he shares the view that predominantly voluntary mountain rescue teams here should be permitted an exemption from VAT for the procurement of equipment which is essential to their work; and if he will make a statement on the matter. [16180/14]

Written answers

Minister for Finance

VAT law is governed by the EU VAT Directive, with which Irish VAT law must comply.  The EU VAT Directive makes specific provision under Articles 148 and 169 for a zero rate of VAT to apply to the supply of vessels for rescue or assistance at sea.  Irish VAT law transposed this provision in 1978 by providing that the zero rate of VAT apply to the supply of large vessels used for sea rescue.  In addition, a VAT Refund Order for the purchase of smaller sea rescue vessels was introduced from 1985, and extended in 2013 to apply to vessels for inland water rescue.  Irish VAT law does not specifically provide a refund of VAT for mountain rescue teams purchasing mountain rescue equipment, as this is not provided for under the EU VAT Directive. 

Where VAT law is amended at EU level to provide that VAT does not apply to mountain rescue equipment or for the introduction of a compensation for VAT incurred on mountain rescue equipment, I will then consider introducing such a reform, taking into consideration the wider Exchequer implications of such a provision.