Dáil Éireann Debate, Thursday - 3 July 2014
39. Deputy Mary Lou McDonald asked the Minister for Finance if his attention has been drawn to the fund-raising campaign on behalf of a person (details supplied) who is suffering from a serious illness; if his attention has been drawn to the fact that the large sum raised has been subjected to VAT; if he will now allow a VAT rebate or make a donation to the persons family equivalent to the VAT charged. [28755/14]
View answerI understand that the fundraising activity in question has utilized text messaging as its main vehicle for facilitating donations. In this context, I am advised by the Revenue Commissioners that charitable donations made by text message, excluding any fees charged by the telecommunications provider or other service provider, are outside the scope of Irish VAT. However, any fees charged by the telecommunications service providers in connection with the facilitation of donations are liable to VAT at the standard rate of 23%. The VAT treatment of charitable donations made by text message is set out in Revenue's eBrief 29/11 which is available at http://www.revenue.ie/en/practitioner/ebrief/archive/2011/no-292011.html.
While the important work carried out by charities and community groups is well recognized, such groups are exempt from VAT under the EU VAT Directive, with which Irish VAT Law must comply. This means that they do not charge VAT on the services they provide and cannot recover VAT incurred on goods and services which they purchase. I have stated in the past that I am prepared to examine the concerns of charities regarding VAT. However, any solutions must take into account not only the current demands on the Exchequer, but also tax reliefs already available to charities, the existing tax relief on donations being an example.
