Terence Flanagan
Ceist:157. Deputy Terence Flanagan asked the Minister for Finance if money will be reimbursed to an organisation (details supplied); and if he will make a statement on the matter. [14451/15]
Amharc ar fhreagraWednesday, 15 April 2015
Ceisteanna (157)
Freagraí scríofa
I am advised by the Revenue Commissioners that VAT is a tax on consumption and is applied to supplies being made by a person and not to supplies received by a person. VAT is an EU-wide tax and is governed by the EU VAT Directive with which the VAT legislation in each EU Member State must apply. Where a Member State's VAT legislation is not in compliance with the EU VAT Directive the Commission will take infringement proceedings against that Member State.
The EU VAT Directive (Council Directive 2006/112/EC) provides that Member States shall exempt in the public interest hospital and medical care or treatment provided by a hospital, nursing home, clinic or similar establishment. Exemption from VAT means that persons engaged in exempt activities are not liable for VAT on their receipts and are not entitled to a credit or deduction for VAT borne on their purchases. The public interest VAT-exemptions have existed since VAT was introduced, mainly because of the practical difficulties in defining and measuring the value added which would be appropriate as a base for taxation.
There is a specific VAT Refund Order (SI 58 of 1992) that provides that VAT incurred on the purchase or importation of new medical instruments and appliances (excluding means of transport), which is purchased through voluntary donations, may be refunded to hospitals or donors, as appropriate, subject to conditions. The Refund Order does not extend to VAT incurred on construction services. Further information on the Refund Order, its conditions and the refund claim form VAT 72 is available on the Revenue website at http://www.revenue.ie/en/tax/vat/forms/index.html.
Question No. 158 answered with Question No. 148.