Michael McGrath
Ceist:68 Deputy Michael McGrath asked the Minister for Finance his plans to make changes to the VAT treatment of books; and if he will make a statement on the matter. [46185/10]
Amharc ar fhreagraTuesday, 7 December 2010
Ceisteanna (67)
Freagraí scríofa
The supply of printed matter may attract one of three VAT rates, namely at the zero rate, the 13.5% reduced rate or the standard 21% rate. The general position is that books are zero rated, newspapers and periodicals are subject to the reduced rate and stationery and other printed matter are liable at the standard rate. The zero rate applies to printed books including atlases, children's picture, drawing and colouring books and books of music. The reduced rate applies to newspapers and periodicals including sectoral publications (sports, fashion, etc.), holiday brochures, prospectuses, catalogues and maps. The standard rate applies to wide range of goods including stationery, calendars, greeting cards, diaries, yearbooks and posters. All digitised publication regardless of their rate when printed (for example, a book liable at zero rate) are treated as a supply of a service liable at the standard rate. Printed matter that is purchased via download over the internet is also considered a service liable for VAT at the standard rate.
I have no immediate plans to change the VAT treatment of books. However, as stated in the National Recovery Plan 2011-2014, it is the Government's intention to examine further rebalancing of the VAT system and zero rated VAT items within the context of wider and ongoing EU level consideration of the matter. The VAT system is continually being reviewed at EU level and Ireland is part of that process.