Eamon Gilmore
Ceist:58 Mr. Gilmore asked the Minister for Finance the amount of VAT charged on Telecom phonewatch systems; the plans, if any, he has to abolish VAT on these systems; and if he will make a statement on the matter. [16106/99]
Written Answers. - Telecom Phonewatch System.
The situation is governed by EU VAT law with which Irish VAT law must comply and the monitoring charge for the Telecom phonewatch system is subject to VAT at the standard rate of 21 per cent.
In the case of installation costs the reduced rate of 12.5 per cent applies. The reduced rate covers the full cost of installation, subject to the rule that the VAT exclusive value of the goods does not exceed two thirds of the VAT exclusive charge to the customer. This is to avoid goods subject to 21 per cent being charged at 12.5 per cent under the guise of installation costs.
I have no proposals to amend these VAT rates, which are moreover, subject to EU VAT rules.