Dáil Éireann Debate, Tuesday - 18 December 2007
151 Deputy Seán Sherlock asked the Tánaiste and Minister for Finance his views on granting a tax exemption to a voluntary group based in Cobh, County Cork whose members operate an emergency response unit; and if he will make a statement on the matter. [34917/07]
Amharc ar fhreagraThe granting of a charitable tax exemption is a matter for the Revenue Commissioners. In this regard, I am advised by Revenue that the group referred to by the Deputy have not applied for such an exemption.
While all charitable organisations applying for tax exemption require a legal structure and a Governing Instrument, it is not essential that the organisation be a registered company. Full details in relation to the application process (including the application form itself) are contained in information booklet CHY1, Applying for Relief from Tax on the Income and Property of Charities, and can be obtained online at www.revenue.ie or by phoning Lo call 1890 666 333. The completed application with the necessary supporting documentation, should be sent to the Office of the Revenue Commissioners, Charities Section, Government Offices, Nenagh, Co. Tipperary.
In relation to VAT, I would like to explain that charities and non-profit groups engaged in non-commercial activity are exempt from VAT under the VAT Directive, with which Irish VAT law must comply. This means they do not charge VAT on the services they provide and cannot recover VAT incurred on goods and services that they purchase. Essentially only VAT registered businesses which charge VAT are able to recover VAT.
However, the tax code currently provides exemption for charities from Income Tax, Corporation Tax, Capital Gains Tax, Deposit Interest Retention Tax, Capital Acquisitions Tax, Stamp Duty, Probate Tax and Dividend Withholding Tax.
