Niamh Smyth
Ceist:94. Deputy Niamh Smyth asked the Minister for Finance the plans, if any, he has to lower the VAT rate on items (details supplied); and if he will make a statement on the matter. [23558/16]
Amharc ar fhreagraThursday, 21 July 2016
Ceisteanna (94)
Freagraí scríofa
All fruit juices, soft drinks, bottled water and smoothies are subject to the standard VAT rate, currently 23%. The standard rate is the VAT rate applied to such products in the majority of EU Member States. Prior to 1992 bottled waters and fruit juices had applied at the zero rate, but were made subject to the standard rate from 1 November 1992 in order to correct a competitive anomaly, as similar competing products such as soft drinks were standard rated. The change in the VAT treatment coincided with the removal of excise duty from bottled water.
Where a product was zero rated prior to 1 January 1991 but subsequently standard rated, it is not possible to reintroduce the zero rate for that product. However, under Annex III of the EU VAT Directive, Member States are permitted to apply a reduced rate of not less than 5% to soft drinks, bottled water and fruit juices. However, a reduction in the rate of VAT on such products would be costly to the Exchequer and I have no plans to reduce the rate of VAT on bottled water, fruit juices or smoothies.