Dáil Éireann Debate, Tuesday - 22 March 2016
53. Deputy Regina Doherty asked the Minister for Finance to amend the value added tax rates on sunbed sessions and on sunscreen, given the 13.5% rate on sunbed sessions and the 23% rate on sunscreen and the significantly increased risk of a number of skin cancers attributable to sunbed use; and if he will make a statement on the matter. [4718/16]
View answerI am advised by the Revenue Commissioners that the VAT rating 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) 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. VAT legislation differentiates between a good such as sunscreen and a service such as providing access to a sunbed. There is no scope for a reduction in the rate of VAT on sun protective creams that would be in compliance with the EU VAT Directive.
The Schedules to the VAT Consolidation Act 2010 set out the circumstances in which a rate lower than the standard rate can apply. Services consisting of the care of the human body, which includes access to sunbeds, health studios, yoga, etc., are liable to VAT at the reduced rate, currently 13.5%. An amendment to the VAT Consolidation Act 2010 would be required to exclude sunbed sessions from the reduced rate of VAT.
