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VAT Rebates

Dáil Éireann Debate, Tuesday - 20 February 2018

Tuesday, 20 February 2018

Questions (136)

Tom Neville

Question:

136. Deputy Tom Neville asked the Minister for Finance if the introduction a VAT rebate scheme in respect of security systems for senior citizens similar to the mobility aids VAT rebate scheme will be considered; and if he will make a statement on the matter. [8358/18]

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Written answers

The VAT rating of goods and services is subject to EU VAT law, with which Irish VAT law must comply. In accordance with the EU VAT directive the supply of a security system is liable to VAT at the standard rate, currently 23%. However, if the supply includes the installation of the system then the reduced rate of 13.5% may apply, subject to the two thirds rule, which requires that to benefit from the 13.5% rate the value of the goods cannot exceed two thirds of the total amount of the supply.

The directive does not permit a rebate or refund of VAT charged to a private person on the sale of a security system and there is no scope under the directive to introduce or amend a Refund Order to include it.

However, I am advised by the Revenue Commissioners that relief may be available in respect of the installation of a security system in the home of a senior citizen under the Home Renovation Initiative, HRI.  This provides income tax relief in the amount of 13.5% of the cost of certain repairs, renovations and improvements, carried out on a person's main residence.  The relief is granted by way of a credit against income tax over the two years following the year in which the works are paid for with the credit split evenly between the two years. 

The key features of the scheme are that:-

- The works must be carried out by a tax compliant contractor;

- The works must be liable to VAT at 13.5%;

- The works must be carried prior to 31 December 2018;

- Local Property Tax payments must be up to date in respect of the property;

- The cost of the works must be greater than €4,405 and not more than €30,000 (both figures exclusive of Value Added Tax). The cost of multiple works by different contractors may be aggregated in a claim.

Full details of the scheme are available on the Revenue website at: https://www.revenue.ie/en/property/home-renovation-incentive/index.aspx

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