Dáil Éireann Debate, Tuesday - 2 October 2018
174. Deputy Jackie Cahill asked the Minister for Finance the detail of the changes in the VAT rate for cookery schools between 2016 and 2018 from 0% to 21%; the rationale for this change in view of the fact that in most cases the activity is merely an addendum to the individual restaurant and in no way the main activity of the business; and if he will make a statement on the matter. [39556/18]
View answerI am advised by the Revenue Commissioners that the VAT rating of goods and services is subject to the requirements of EU VAT law, with which Irish VAT law must comply. I am further advised that there has been no change in the position in relation to the VAT treatment of cookery schools.
In accordance with the VAT Directive, the provision of children’s or young people’s education and school or university education is exempt from VAT. This exemption also applies to the provision of training and development courses subject to the training and retraining being of a vocational nature. Where a cookery school is providing courses for educational or vocational purposes, any such course is exempt from VAT, provided the lessons in question are conducted as part of a programme that meets the standards set out by the Department of Education and Skills syllabus or, in the case of vocational training, the course is aimed at acquiring or updating knowledge in relation to a specific profession or trade.
Where a cookery school provides courses primarily for recreational purposes, the position continues to be that these courses are liable to VAT at the standard rate, currently 23%. A course which is primarily for recreational purposes is undertaken for the enjoyment and satisfaction of the participants rather than for developing skills and knowledge which will assist the participant in their trade or profession, and is therefore outside the scope of the education exemption.
When a business operates two activities, such as a restaurant which operates a cookery school, the tax rate applicable to the income derived from each activity is dependent on the actual supplies being made. In general, restaurant services are taxable at the 9% reduced rate and cookery courses are either exempt or taxable at the standard rate of 23%. If a cookery school has any doubt as to the eligibility for exemption of any of its courses, it should contact its local Revenue District for advice.
