Dáil Éireann Debate, Tuesday - 30 September 2014
190. Deputy Jerry Buttimer asked the Minister for Finance his plans to change the rate of VAT applicable to herbal remedies and food supplements; if an economic impact assessment of any proposed changes has been carried out; if the impact of such a change on small retailers across the country has been considered; if there has been any consultation in relation to the proposals; and if he will make a statement on the matter. [36649/14]
View answerI am advised by the Revenue Commissioners that the EU VAT Directive (Council Directive 2006/112/EC) generally provides that supplies of goods and services are chargeable to VAT at the standard rate but that lower rates are permitted in very limited circumstances. Food products can only benefit from the zero rating in accordance with Article 110 of the VAT Directive which permits the retention of the zero rate where the products were liable to VAT at the zero rate on and from 1 January 1991.
A range of food supplements and vitamins that encourage the maintenance of health, through the sustenance derived from a normal, healthy diet, benefit from the zero rate. However, a food supplement taken for the purposes of muscle growth or body mass increase, or for the purposes of weight reduction or bodily sculpture, cannot benefit from the zero rate. I would draw the Deputy's attention to Revenue eBrief 70/2011 which contains additional detail in relation to the VAT rates of vitamins and food supplements.
Tea and preparations derived from tea, when supplied in non-drinkable form, are liable to VAT at the zero rate. I consider it appropriate that the zero rate should also apply to herbal teas and fruit infusions and I intend to amend the VAT Consolidation Act to this effect.
