Dáil Éireann Debate, Wednesday - 8 June 2016
126. Deputy Robert Troy asked the Minister for Finance to consider extending the exemption of social housing from VAT to third level institutions which possess landbanks to facilitate them in constructing student accommodation. [14252/16]
View answerThe reduced rate of 13.5% applies to residential housing which includes social housing. The provision of student accommodation is exempt under Irish VAT rules in accordance with Schedule 1 of the VAT Consolidation Act. While VAT is therefore not levied on the rents, the landlord is prohibited from recovering the VAT incurred on the acquisition or development of the property being let.
The zero rate of VAT (providing exemption with deductibility) cannot be applied to the provision of student accommodation. The VAT rating of goods and services is subject to EU VAT law, primarily Council Directive 2006/112/EC, with which Irish VAT law must comply. The zero rate of VAT cannot be applied to any goods or services unless the zero rate applied to those goods and services on and from 1 January 1991.
