Vol. 496 No. 4
226 Mr. R. Bruton asked the Minister for Finance if he will review the provisions of the VAT code that imposes a 21 per cent rate on glasses which are a necessity and should be zero rated or at the lowest rate; and if this reduction is feasible under EU rules. [23137/98]
The supply of corrective spectacles is subject to VAT at the standard rate of 21 per cent. VAT on spectacles was introduced in 1989 following a ruling from the European Court of Justice. Up until that judgment, Ireland and the UK were the only member states not applying VAT to the supply of spectacles.
Irish VAT law must comply with the provisions of the EU Sixth VAT Directive. As such, member states may only retain the zero rates they had in place on 1 January 1991, but are prohibited from introducing new zero rates or applying a lower rate of VAT to an item not listed under Annex H of this directive. Therefore, it is not now open to the Government to vary the VAT treatment in this case.
