Vol. 451 No. 6
35 Mr. D. Ahern asked the Minister for Finance if he will consider the possibility of exempting from VAT, or alternatively zero-rating, legal services in the area of family law; and if he will make a statement on the matter. [5853/95]
The position is that the matter is governed by EU VAT law, with which Irish VAT law must comply.
Under the Sixth VAT Directive, legal services are taxable. While some member states may continue to avail of a temporary derogation which permits exemption, it is not open to other member states, such as Ireland, who already tax these services, to introduce an exemption at this stage, even of the limited type referred to by the Deputy.
The Directive also prohibits the introduction of new zero rates. Furthermore, it should be noted that legal services are not on the list of items to which reduced rating may be applied. Moreover, as these services were not at a reduced rate here on 1 January 1991, the application of reduced rating on a temporary basis is also ruled out. Accordingly, all legal services must remain standard rated in Ireland.
