Dáil Éireann Debate, Tuesday - 30 January 2018
87. Deputy Michael Harty asked the Minister for Finance the progress that has been made regarding the development of a VAT compensation scheme for charities as announced in budget 2018; and if he will make a statement on the matter. [53588/17]
View answerIn line with my Budget 2018 announcement, a VAT compensation scheme for charities will be introduced in 2019 in respect of VAT expenses incurred in 2018. Charities will be entitled to a refund of a proportion of their VAT costs based on the level of non-public funding they receive, up to a total capped fund of €5m.
Work on the introduction of this scheme has been commenced by officials of my Department and the Office of the Revenue Commissioners. While the high level principles of the scheme were published on my Department’s website on Budget Day, the wider parameters of the operation of the scheme need to be agreed, so that guidelines for charities can be published along with the Ministerial Order underpinning the scheme. When the preliminary work has been completed, my officials will engage with the wider charities sector to ensure that their views are reflected in the finalising of the scheme.
The scheme, including the amount provided in the fund, will be subject to review after three years. Claims under the scheme for 2018 cannot be made until 2019 as it will take some time for Revenue to establish IT and administrative systems.
