James Bannon
Question:241. Deputy James Bannon asked the Minister for Finance if he will consider exempting a charitable school (details supplied) in County Longford from VAT; and if he will make a statement on the matter. [34613/15]
View answerTuesday, 6 October 2015
Questions (241, 242)
James Bannon
Question:242. Deputy James Bannon asked the Minister for Finance his plans to remove the VAT from building works on all schools with a charitable status; and if he will make a statement on the matter. [34616/15]
View answerWritten answers
I propose to take Questions Nos. 241 and 242 together.
I am advised by the Revenue Commissioners that for reasons of taxpayer confidentiality it cannot comment upon the tax affairs of individual bodies. The Commissioners have confirmed that schools providing education, based on a programme prescribed or approved by the Minister for Education and Skills, are approved bodies for a scheme of tax relief on donations and for tax relief on certain income.
The Revenue Commissioners have pointed out that the VAT treatment of goods and services is subject to the requirements of EU VAT law with which Irish VAT law must comply. The EU VAT Directive (Council Directive 2006/112/EC) provides, in general, that the standard rate of VAT is to be applied to supplies of all goods and services. The Directive provides that the VAT rate is determined by the nature of the supply and not the status of the recipient of the supply. By way of special derogation from the general rule, however, Ireland is permitted to apply the reduced rate of 13.5% to construction services such as school building works. The EU VAT Directive provides no scope to remove VAT from the supply of such services.