Dáil Éireann Debate, Tuesday - 22 October 2013
160. Deputy Brendan Griffin asked the Minister for Finance if it is true that it is intended to apply a rate of 23% VAT to health supplements such as protein; if the measures will be immediately reversed, in view of the health benefits that accrue from person's living healthier lifestyles and having healthier diets; if he will explain the rationale for this measure [44764/13]
Amharc ar fhreagraThe 23% applies to the supply of health supplements, including protein. The VAT rating of goods and services is subject to the requirements of EU VAT law with which Irish VAT law must comply. A change in VAT rates must be in compliance with the EU VAT Directive. The VAT Directive 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 the health supplements referred to by the Deputy, and as such it is not possible to introduce a zero rate on these products.
