I am advised by the Revenue Commissioners that the VAT rating of goods and services is subject to the requirements of EU VAT law, with which Irish VAT law must comply. While we can maintain the zero rating on those goods and services which were zero-rated before 1 January 1991, the equipment referred to in general terms by the Deputy does not fall within this category. Similarly, member states may only apply a reduced VAT rate to those goods and services set out in Annex III of the EU VAT Directive (2006/112/EC). Equipment for persons with special needs is not included in this annex. Therefore, it is not possible to apply a zero or reduced VAT rate to equipment for persons with special needs.
There is provision for the refund of VAT incurred on qualifying goods for the exclusive use of disabled persons in the Value Added Tax (Refund of Tax) (No 15) Order 1981. The order specifies the degree of disability and defines the qualifying goods as goods which are aids or appliances, including parts and accessories, specially constructed or adapted for use by a disabled person. Voluntary organisations that work with children with special needs may claim a refund on VAT paid on specialist equipment provided that the conditions of the Order are met, in particular, that the equipment is supplied by the voluntary organisation, other than in the course of business, and that the equipment is used exclusively by a specific individual. A Claim Form VAT 61A is available on the Revenue website www.revenue.ie.
