Dáil Éireann Debate, Wednesday - 6 May 2015
162. Deputy Billy Kelleher asked the Minister for Finance the reason value-added tax is charged on the repair of artificial limbs while no value-added tax is applicable on new artificial limbs; if he will remove the value-added tax; if so, when; and if he will make a statement on the matter. [17697/15]
View answerI am advised by the Revenue Commissioners that EU VAT Directive (Council Directive 2006/112/EC), with which Irish VAT legislation must comply, generally provides that supplies of goods and services be chargeable to VAT at the standard rate but that lower rates are permitted in very limited circumstances. Ireland has applied a zero rate of VAT to the supply of artificial limbs since 1981 and was permitted to retain the zero rate by Article 110 of the EU VAT Directive. The zero rate also applies to parts or accessories suitable for use solely or principally with the artificial limb. Ireland has applied the reduced rate to the repair of movable goods, including artificial limbs, since 1986 and was permitted to retain that reduced rate by Article 113 of the EU VAT Directive. The EU VAT Directive does not allow Irish VAT legislation to apply the zero rate of VAT to the repair of movable goods.
