Dáil Éireann Debate, Thursday - 17 July 2014
85. Deputy Brendan Griffin asked the Minister for Finance if he will reconsider reducing 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. [32356/14]
View answerThe 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.
However, 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 rate.
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 not only be costly to the Exchequer, but would be inadvisable from a health perspective. I therefore have no plans to change the VAT treatment of ice-cream sold by ice-cream parlours.
