Vol. 517 No. 6
210 Mr. Wall asked the Minister for Finance if his attention has been drawn to the fact that VAT at the rate of 21% is charged on monthly bills payable for the rental of security monitoring systems installed for the protection and safety of old age pensioners; the plans, if any, he has to abolish this; and if he will make a statement on the matter. [10844/00]
The situation is governed by EU VAT law with which Irish VAT law must comply. Under the EU sixth VAT directive member states may retain the zero rates they had in place on 1 January 1991, but they are prohibited from introducing new zero rates.
The monitoring charge for monitored alarm systems is subject to VAT at the standard rate of 21% and it is not now open to me to zero rate the supply of this service. Therefore, the standard rate must apply regardless of the status of the user of the service.
