Dáil Éireann Debate, Wednesday - 17 December 2014
52. Deputy Mary Mitchell O'Connor asked the Minister for Finance if he will provide for a change to the EU VAT directive and relevant orders to allow for a zero VAT rate on EPI pens as a measure to increase their availability; and if he will make a statement on the matter. [48603/14]
View answerI am advised by the Revenue Commissioners that the VAT rating of goods and services is constrained by the requirements of EU VAT law with which Irish VAT law must comply. EPI pens, which provide injectable medicine, are subject to the standard rate of VAT rate of 23%. While Ireland is permitted to continue to apply a zero-rate to oral medicines it may not apply a zero rate to additional goods such as non-oral or injectable medicines.
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 EPI pens would succeed.
