asked the Minister for Finance if his attention has been drawn to the fact that photographic films sold through photographic dealers have a 25 per cent VAT rate applied whereas films given away free by processing laboratories have a zero VAT rating; whether this is unfair trading; and the steps he proposes to take to deal with this situation, in view of the possible loss of jobs involved in this industry.
Written Answers. - VAT on Photographic Film.
66.
Sales of colour film by VAT registered traders are liable to VAT at the standard 25 per cent rate. However, VAT does not apply to gifts of goods the cost of which to the donor does not exceed £15. Films supplied free as part of a processing offer are treated under this gifts provision.
I am satisfied that VAT law is being applied in the correct way. If the Deputy wishes to let me have details of the problems that he feels the present situation is causing I will have the matter examined in consultation with the Minister for Industry and Commerce.