Dáil Éireann Debate, Wednesday - 16 October 2013
9. Deputy Mary Mitchell O'Connor asked the Minister for Finance if he will reduce the 23% VAT rate on smoothie drinks as raw fruit and vegetables incur 0% VAT yet when processed into a smoothie drink they incur 23% VAT; and if he will make a statement on the matter. [43783/13]
Amharc ar fhreagraI am advised by the Revenue Commissioners that the VAT rating of goods and services is subject to the requirements of EU VAT law with which Irish VAT law must comply. The EU VAT Directive (Council Directive 2006/112/EC) generally provides that supplies of goods and services be chargeable to VAT at the standard rate but that lower rates are permitted in very limited circumstances. Food products can only benefit from the zero rating in accordance with Article 110 of the VAT Directive which permits the retention of the zero rate for “clearly defined social reasons” where the products were liable to VAT at the zero rate on 1 January 1991. This does not apply in the case of smoothies, and accordingly they are liable to VAT at the standard rate.
