Dáil Éireann Debate, Wednesday - 17 December 2014
51. Deputy Mary Mitchell O'Connor asked the Minister for Finance if he will provide a change to the EU VAT directive and relevant orders to allow for a zero VAT rate on defibrillators as a measure to increase their availability; and if he will make a statement on the matter. [48602/14]
View answerThe VAT rating of goods and services is constrained by the requirements of EU VAT law with which Irish VAT law must comply. Defibrillators, other than implantable defibrillators, are liable to VAT at the standard rate of 23%. Parts or accessories and training are also liable to VAT at the standard rate.
There is no provision in the EU VAT Directive that would make it possible to exempt from VAT or apply a zero rate to the supply of defibrillators. Under the VAT (Refund of Tax) (No. 15) Order, 1981 it is possible for individuals to obtain repayment of VAT expended on certain goods and appliances which assist persons with a disability to overcome that disability. In this context, a defibrillator purchased by or on behalf of an individual may qualify for a VAT refund.
With regard to making changes at EU level to provide that other goods or services can apply at the zero rate, I would point out that zero-rating is an historical derogation from the normal VAT rules, where the intention is that such VAT treatment is temporary, and should be removed over time. In addition, only a small number of Member States apply zero-rated VAT treatment and the EU Commission has actively being trying to simplify the VAT rating system to improve the efficiency of the Single Market. For these reasons, I do not consider that a proposal to seek a zero rate of VAT for the purchase of defibrillators for community and sporting organisations would succeed.
