asked the Minister for Finance (a) if he will confirm that all items purchased by the staff of foreign embassies in Ireland are exempt from VAT; (b) the amount of VAT lost in this way for the years ending 31 December 1982 and 31 December 1983; and (c) if reciprocal arrangements apply in regard to our diplomatic missions abroad.
Written Answers. - VAT Exemption for Embassy Employees.
121.
I am informed by the Revenue Commissioners that the position is as follows:
(a) only certain expenditure by the staff of foreign embassies in Ireland is relieved from VAT. The relief is provided by remission at source or by direct repayment, as appropriate;
(b) VAT repaid for year ending 31 December 1982 was £74,918 and for year ending 31 December 1983 was £143,021. Records are not kept in a form which would enable the amount of VAT relieved by means of remission at source to be established;
(c) the reliefs are similar to reliefs provided to diplomats (including Irish diplomats) in other countries. Reciprocity is not a specific condition of eligibility for the relief.