asked the Minister for Finance why VAT was charged at Dublin Airport on a greyhound bitch being brought to an Irish stud dog for service.
Ceisteanna—Questions. Oral Answers. - Operation of VAT.
27.
VAT was properly charged on the importation of a greyhound bitch being brought to an Irish stud dog for service. Since the date of the importation, arrangements have been made for relief from tax of live animals temporarily imported for stud purposes. The tax charged in the instance mentioned by the Deputy is being refunded.
Did the Minister say VAT was properly charged?
Yes.
Why the change then?
Because new regulations have been made.
You found it was wrongly charged, then?
Yes. I said in this House that there would be many teething problems that would come to light, as there always does when there is a changeover in the tax system, and I set up an advisory committee to assist in the kind of problems which would arise. They were operating for the first three months before 1st November and will operate for three months afterwards, precisely to deal with these problems.
The case in question is one that was overlooked?
It is one that did not come to light at first.
28.
asked the Minister for Finance if he is aware of the serious concern among bloodstock owners and breeders at the proposal to impose VAT on horses imported for breeding or racing; if, in view of the vital importance of this industry to the national economy and the employment provided by it, he will take steps to have the proposal reviewed forthwith; and if he will make a statement on the matter.
29.
asked the Minister for Finance if it is intended to apply VAT to horses sent from abroad for training or on stallions sent to stud in this country; and, if so, if the matter will be reconsidered in view of the importance of the bloodstock industry.
With your permission, a Cheann Comhairle, I propose to take Questions Nos. 28 and 29 together.
Value-added tax at the rate 5.26 per cent applies to imports of live animals in the same way as a Customs duty. In the case of imports of horses— and also cattle, sheep and pigs—the tax is chargeable on 19.20 per cent of the value, making the effective rate of tax 1 per cent.
There are provisions under Customs law for the temporary importation of goods free of duty in certain circumstances. These apply to VAT also and, in addition, special arrangements have been made to exempt from tax live animals temporarily imported for breeding or racing. The Revenue Commissioners have arranged discussions with representatives of the bloodstock industry to investigate any problems which may still exist and to consider whether any further special arrangements may be called for.
I take it from what the Minister has said that if tax has been incorrectly charged in any case it will be refunded?
Yes, the Deputy could take that.