Tuesday, 27 February 2018

Questions (182)

Brendan Smith

Question:

182. Deputy Brendan Smith asked the Minister for Finance if the feasibility of charity organisations purchasing defibrillators on behalf of various community groups such as the community first responders will be examined in view of the new VAT compensation refund scheme which will compensate charities for the VAT they incur; if this saving can then be passed on to the community first responder network; and if he will make a statement on the matter. [9841/18]

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Written answers (Question to Finance)

In 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. Until such time as the wider parameters of the scheme have been fully agreed, and guidelines have been published, it is not possible to comment on the feasibility of the different ways the scheme may potentially express itself.