Dáil Éireann Debate, Thursday - 29 September 2022
105. Deputy Michael Healy-Rae asked the Minister for Finance if he will introduce a 0% VAT rate for a lime product (details supplied), given it is environmentally friendly and will encourage more farmers to use it and reduce their carbon footprint; and if he will make a statement on the matter. [47649/22]
View answerI am advised by Revenue that the VAT rating of goods and services is subject to the requirements of EU VAT law, with which Irish VAT law must comply. In general, the EU VAT Directive provides that all goods and services are liable to VAT at the standard rate, unless they fall within categories of goods and services specified in Annex III of the VAT Directive, in respect of which Member States may apply a lower rate of VAT. Within its rates structure, the EU VAT Directive also allows for historic VAT treatment to be maintained under certain conditions on certain goods and services not provided for in Annex III. Currently, Ireland has a standard VAT rate of 23%, and two reduced rates of 13.5% and 9%. Ireland is also permitted to retain some historic VAT arrangements, under strict conditions.
While it is not immediately clear from the information provided, Revenue understands that the lime product referred to by the Deputy is a fertiliser within the meaning of the Fertilisers, Feeding Stuffs and Mineral Mixtures Act 1955. If this is the case, then – as part of the historic VAT arrangements that Ireland is permitted to retain – a zero rate of VAT applies to the product, provided such fertiliser is supplied in units of not less than 10 kilos; otherwise, the standard rate of VAT applies.
