Tax Code

Dáil Éireann Debate, Wednesday - 17 October 2018

Wednesday, 17 October 2018

Questions (78)

John Brady

Question:

78. Deputy John Brady asked the Minister for Finance if he will defer tax paid on the purchasing of defibrillators for first responder groups here; and if he will make a statement on the matter. [42627/18]

Written answers

Minister for Finance

Defibrillators, other than implantable defibrillators, are liable to VAT at the standard rate, which in Ireland is 23%. Parts or accessories are also liable to VAT at the standard rate. There is no provision under existing VAT law that would make it possible to apply a reduced rate or zero rate to the supply of such products. Under the EU VAT Directive, Member States may retain the zero rate on goods and services which were in place on 1 January 1991, but cannot extend the zero rate to new goods and services. As such a zero rate cannot be applied to defibrillators. Any changes to VAT rates outside of what is currently permitted by the EU VAT Directive must be negotiated at EU technical working groups and ultimately agreed by the EU Council of Finance Ministers.

As part of the Action Plan on the future of VAT on 7 April 2016 which sets out the Commission’s pathway for modernising the VAT system, the EU Commission published a proposal on the reform of VAT rates in January 2018. Prior to publication, preliminary details of the proposed changes were discussed as part of the EU Commission’s Group on the Future of VAT - a forum for consulting VAT experts from Member States on pre-legislative initiatives. Officials from the Department of Finance contributed to these discussions. With regard to what activity should be subject to a reduced rate of VAT going forward, Ireland specifically recommended to the Commission to include defibrillators and other emergency-medical and rescue equipment.

In the course of technical and political discussions on the proposal, Ireland will take the opportunity to continue to recommend that Member States should be able to apply specialised VAT rating to defibrillators and other emergency-medical and rescue equipment.