Dáil Éireann Debate, Thursday - 19 November 2009
78 Deputy Ciarán Lynch asked the Minister for Finance the retail volumes accommodated at the VAT rates 0%, 13.5% and 21.5%; if he will indicate specifically the volumes in regard to eat-in meals; his views on a reduction in the VAT rate in the eat-in meals sector which has been successfully introduced elsewhere; and if he will make a statement on the matter. [42465/09]
Amharc ar fhreagraI am advised by the Revenue Commissioners that statistical data is not available to provide a basis for estimating the precise information requested by the Deputy. However, with regard to the value of all goods and services liable to VAT, I would point out that goods and services at the zero rate of VAT account for approximately 10% of all goods and services subject to VAT, while around 39% of all goods and services subject to VAT are charged at the 13.5% reduced VAT rate. Finally the 21.5% standard VAT rate accounts for around 51% of all items subject to VAT.
The majority of basic foods sold by retailers are subject to the zero rate of VAT while most bakery products, excluding bread, operate at 13.5%. Confectionary and snacks are generally liable to VAT at the standard rate of 21.5%. Alcohol, soft drinks and bottled waters are liable to VAT at 21.5% in all circumstances. All hot take-away food is liable at 13.5% irrespective of the rate which would apply if it were supplied otherwise. Catered food, including the eat-in meal sector, operates at the reduced rate of 13.5%. While restaurant and catering services has only recently been specifically recognised as a service to which a reduced rate of VAT may apply under the EU VAT directive, Ireland has always applied the reduced rate to such services, because catering services were reduced rated in Ireland before 1991.
With regard to further reducing VAT in the eat-in meals sector, the Deputy will appreciate that it is the usual practice for the Minister for Finance not to speculate or comment in advance of the budget on what it will contain and I do not propose to deviate from that practice.
