Thursday, 30 July 2020

Questions (315)

Louise O'Reilly

Question:

315. Deputy Louise O'Reilly asked the Minister for Finance the estimated cost if the Revenue Commissioners were to apply a zero rate of VAT to face masks using the European Commission decision to allow goods to combat Covid-19 to be imported from outside the EU free of import duties and VAT; and if he will make a statement on the matter. [19799/20]

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Written answers (Question to Finance)

As I have outlined previously, the VAT rate changes implemented by Revenue following the European Commission Decision C (2020)2146, fully implemented the scope for zero rating imports of COVID-19 related goods permitted by the Decision and also implemented a corresponding temporary zero rating of similar, specified domestic supplies.  Any further extension of zero rating to cover supplies of medical equipment and/or personal protection equipment to other sectors and businesses would require a change in legislation at EU level; the VAT Directive would not permit a legislative measure for the application of the zero rate of VAT to such supplies and there are no grounds in the Commission Decision that would support the adoption of such a measure, even on a temporary basis.