Dáil Éireann Debate, Tuesday - 25 July 2023
310. Deputy Ged Nash asked the Minister for Finance if he is aware of an anomaly in the application of the zero VAT rate on books and e-books that exempts popular online audiobook platforms (details supplied) which are judged to be providing a digital service and are therefore obliged to charge VAT; if he will address this anomaly that unfairly discriminates against those with visual impairments; and if he will make a statement on the matter. [36145/23]
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. Currently, Ireland has two reduced rates of 13.5% and 9%.
Historically Ireland applied a zero rate of VAT to the supply of printed books on the basis of a historical derogation which could not be expanded. Following an agreement on VAT rates in 2022, Member States can now apply a reduced rate lower than the 5% minimum and a zero-rate to certain categories in Annex III, namely supplies covered by categories (1) to (6) and (10c). These cover food, water, medicine, medical equipment, transport, books, electronic publications, and solar panels.
Ireland now applies the zero rate of VAT to the supply of printed books and to most printed and electronic newspapers. The 9% VAT rate applies to the supply of most other electronic publications, including both e-books and audiobooks. However, the standard rate of VAT applies to the supply of electronic newspapers and electronic publications that are wholly or predominantly devoted to advertising or consist wholly or predominantly of audio music or video content.
Future tax changes are generally taken in the context of the Budget. You will be aware that my officials prepare a series of papers containing tax options for the Tax Strategy Group to be considered in the context of the budgetary process. In addition, a wide range of submissions are received from various stakeholders and lobby groups which are also considered as part of the budgetary process.
As the Deputy will be aware, it is a long-standing practice that the Minister for Finance does not comment, in advance of the Budget, on any tax matters that might be the subject of Budget decisions.
