Dáil Éireann Debate, Tuesday - 29 September 2015
267. Deputy Tom Fleming asked the Minister for Finance if he will reduce the value added tax rate on natural no-sugar-added juices, for example, apple, orange, wheat grass, kale, and spinach-based, that is, juices made from 100% product and containing nothing else, from 23% to 0%, in order to make them more affordable and accessible; and if he will make a statement on the matter. [33249/15]
View answerI am advised by the Revenue Commissioners that VAT law in Ireland must comply with the EU VAT Directive and that the majority of food products are already liable at the zero rate of VAT. However, 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 for "clearly defined social reasons" where the products were liable to VAT at the zero rate on 1 January 1991. Settled case law requires that such exemptions be strictly interpreted and narrowly applied so as not to create or increase divergence of VAT treatment in the EU Member States. As the kinds of products listed in your question were not zero rated in 1991, the standard rate applies and there is no scope to apply the zero rate.
The details attached suggest that non-Irish suppliers of such products may not be applying the correct VAT rate; if the Deputy has such information I suggest that he pass it to the Revenue Commissioners.
