Colm Burke
Question:325. Deputy Colm Burke asked the Minister for Finance if consideration will be given to reducing VAT on deep retrofit works; and if he will make a statement on the matter. [37801/22]
View answerTuesday, 12 July 2022
Questions (325, 326)
Colm Burke
Question:326. Deputy Colm Burke asked the Minister for Finance if consideration will be given to including the cost of VAT under the deep retrofit grant scheme; and if he will make a statement on the matter. [37802/22]
View answerWritten answers
I propose to take Questions Nos. 325 and 326 together.
As the Deputy will be aware, it is a long-standing practice of the Minister for Finance not to comment, in advance of the Budget, on any tax matters that might be the subject of Budget decisions.
It is possible for Ireland to apply the 9% reduced VAT rate to the supply and construction of housing, as part of a social policy and to the repair and renovation of residential housing. However as I have noted previously, having two separate VAT rates applying to construction services would introduce significant complexity to the sector and risks possible underpayments of VAT. There is also no obligation for any VAT reduction to be passed to the final consumer.
It is not possible to estimate a cost for this measure as traders are not required to separately identify the VAT generated from the sale or supply of specific products or services in their VAT returns.
Question No. 326 answered with Question No. 325.