Dáil Éireann díospóireacht -
Tuesday, 5 Nov 1996

Vol. 471 No. 1

Written Answers. - Pre-School Child Minding Services.

Helen Keogh

Ceist:

80 Ms Keogh asked the Minister for Finance if his attention has been drawn to the fact that the Revenue Commissioners are considering an application of VAT to pre-school child minding services; and whether he will make a statement on the Government's policy in this regard. [20317/96]

Mary Wallace

Ceist:

92 Miss M. Wallace asked the Minister for Finance if his attention has been drawn to the fact that applying VAT to the cost of child care may be in contravention of an EU directive on the issue; and if he will make a statement on the matter. [20491/96]

Michael Ahern

Ceist:

93 Mr. M. Ahern asked the Minister for Finance whether he will introduce VAT on child care in relation to full day care services. [20614/96]

Liam Fitzgerald

Ceist:

94 Mr. L. Fitzgerald asked the Minister for Finance if his attention has been drawn to the concern of the National Children's Nurseries Association in relation to VAT; and if he will make a statement on the matter. [20522/96]

Tony Gregory

Ceist:

103 Mr. Gregory asked the Minister for Finance his response to a submission (details supplied) from the National Children's Nurseries Association, Dublin 7. [20269/96]

Eoin Ryan

Ceist:

111 Mr. E. Ryan asked the Minister for Finance if he has considered the points raised by the National Children's Nurseries Association (details supplied); and if he will make a statement on the matter. [20381/96]

Minister for Finance (Mr. Quinn)

I propose to take Questions Nos. 80, 92, 93, 94, 103 and 111 together.

I have received representations from the National Children's Nurseries Association regarding the VAT treatment of child minding services.

The position in this regard is governed by European VAT law, with which Irish VAT law complies fully. Under the EU Sixth VAT Directive, education is an exempt service for VAT purposes, but this exemption does not extend to childcare services or nurseries. Such facilities are liable for VAT when they are provided in the course or furtherance of business and if their annual turnover exceeds, or is likely to exceed £20,000. However, I should point that non-profit making child minding services provided by public bodies or recognised charities are exempt from VAT. In addition, crèches and playschools which follow a clear educational programme may be exempt if they come within the terms of the exemption for children's education. In the majority of cases, it is the experience of the Revenue Commissioners that childcare services rather than education are provided by such crèches and playschools. In such instances, VAT would be chargeable on the childcare element. It is a matter for the Revenue Commissioners to determine whether a particular facility is liable for VAT.