Vol. 496 No. 4
224 Mr. Ring asked the Minister for Finance the size or age level when VAT becomes payable on children's footwear and clothing; the plans, if any, he has to change these regulations to take account of the many children who grow quickly and have to pay VAT on footwear and clothing at an early age, although still legally classified as children. [23066/98]
The position is that since 1985 articles of children's personal clothing which do not exceed the sizes appropriate to children of average build of ten years of age, but excluding clothes which are not described, labelled, marked or marketed on the basis of age or size, are zero rate for VAT. Articles of children's personal footwear of sizes which do not exceed the size appropriate to children of average foot size of ten years of age, but excluding footwear which is not described, labelled, marked or marketed on the basis of age or size, are zero rated for VAT.
All other clothing and footwear attracts VAT at the standard rate of 21 per cent. The provisions of EU VAT law would rule out any extension in the scope of the zero rate at this stage.
I should point out that the practical administration of these provisions is a matter for the Revenue Commissioners who have at all times endeavoured to apply them in an equitable way and in full consultation and agreement with the clothing and footwear trade. Explanatory leaflets detailing Revenue's administrative practices in this area are available on request.
I appreciate that some children may require adult size clothing and footwear earlier than others. However, any rule with a cut off point, such as this one, is likely to give rise to anomalous situations with both winners and losers.
