Dáil Éireann Debate, Friday - 7 September 2018
122. Deputy Pearse Doherty asked the Minister for Finance if it is possible to introduce a differentiated VAT rate within a single economic sector based on profitability or other measures such as turnover; and if he will make a statement on the matter. [35979/18]
View answerFiscal neutrality is a fundamental tenet of the VAT system, and a core principle of EU tax law. As a result, any policy that goes against fiscal neutrality is counter to EU VAT law. In this regard, applying different VAT rates to different forms of the same service is illegal. For this reason it is not possible to apply different VAT rates to different services within the same sector based on profitability or other measures such as turnover.
