Dáil Éireann Debate, Tuesday - 1 May 2012
204 Deputy Terence Flanagan asked the Minister for Finance if he will consider reducing the VAT charged on life-saving equipment such as lifejackets to help encourage their purchase and make them more affordable for sea travellers; and if he will make a statement on the matter. [21850/12]
Amharc ar fhreagraThe VAT rating of goods and services is subject to the requirements of EU VAT law with which Irish VAT law must comply. The VAT Directive does not make specific provision for a reduced or zero rate to apply to safety equipment, including life saving equipment, and as such they are subject to the standard VAT rate, which is currently 23%. However, for historic reasons the zero rate of VAT applies to safety clothing, including lifejackets, for children up to 10 years of age, while the supply of such clothing for adults and children older than 10 years is liable to VAT at the 23% rate. As Ireland applied the zero rate to clothing and protective clothing for children up to 10 years of age on 1 January 1991, we are entitled to retain that zero rated application. However, as the standard VAT rate applied to safety equipment and safety clothing for adults and older children at 1 January 1991, it is not possible to apply a reduced or zero rate to them.
