Vol. 462 No. 8
55 Mr. E. Byrne asked the Minister for Finance the proposals, if any, he has to make representations at EU level for the sixth EU VAT directive to be revisited in order to enable bodies engaged in charitable activities to recover VAT borne on goods and services which they purchase in the course of those charitable activities; and if he will make a statement on the matter. [5592/96]
I have no plants to make proposals or representations at EU level to amend the Sixth EU VAT Directive to allow bodies engaged in charitable activities to recover VAT born on goods and services which they purchase in the course of their activities. Any such proposals would have to be made by the European Commission which has sole right of initiative under the Treaties.
However, in many instances, the most appropriate way for the State to assist charities and similar organisations is by means of direct grant assistance. A wide variety of schemes are currently operated by Government Departments to this end, ranging from loans to ongoing assistance with day-to-day running costs, depending on the nature of the activity being carried out. These Exchequer grants take account of the fact that VAT is not recoverable in these cases. It should be noted, too, that certain projects undertaken by such organisations are also eligible for national lottery funding.
