Dáil Éireann Debate, Wednesday - 25 May 2016
83. Deputy Róisín Shortall asked the Minister for Finance further to Parliamentary Question No. 156 of 6 April 2016, and the commitment in the programme for Government to seek a reduction of the VAT applied to defibrillators, if he will undertake to seek a reduction of the rate of VAT applying to motorcycling helmets and other compulsory safety equipment. [11924/16]
View answerThe VAT rating of goods and services is subject to the requirements of the EU VAT Directive with which Irish VAT law must comply. The VAT Directive provides that all goods and services are liable to VAT at the standard rate, currently 23% in Ireland, unless there is a provision in the VAT Directive that permits a lower rate. The EU VAT Directive does not make provision for a reduction in the VAT rate to apply to motorcycle helmets and other compulsory safety equipment.
Cycle helmets and motorcycle helmets and other protective headwear for children may, however, benefit from the zero rate of VAT, in accordance with the Value Added Tax Consolidation Act 2010, Schedule 2, paragraph 10, provided they are described, labelled, marked or marketed for children under 11 years of age.
Any changes to VAT rates outside of what is currently permitted by the EU VAT Directive must be negotiated at EU technical working groups and ultimately agreed by the EU Council of Finance Ministers. The EU Commission recently published an Action Plan on the future of VAT "Towards a single EU VAT Area - Time to decide", which sets out the Commission's pathway for modernising the VAT system and contains a proposal to look at VAT rate policy across the EU in 2017.
The Action Plan's proposal on rates may offer Member States more flexibility in the future in determining VAT rates applicable to goods and services. This forum will provide an opportunity to discuss VAT rates applicable to goods and services including motorcycle helmets and other compulsory safety equipment as referred to by the Deputy. However, the Deputy will be aware that any proposed changes to the current EU VAT Directive would require unanimous agreement from all Member States.
