Dáil Éireann Debate, Tuesday - 18 October 2016
197. Deputy John McGuinness asked the Minister for Finance the reason the lower rate of VAT is not being applied to the hire of suits, dresses, costumes and so on, as the hire is classified as a service; and if he will make a statement on the matter. [30811/16]
Amharc ar fhreagraThe VAT rating of goods and services is subject to the requirements of the EU VAT Directive with which Irish VAT law must comply. The Directive provides that all goods and services are liable to VAT at the standard rate, currently 23% in Ireland, unless there is a provision in the Directive that permits the good or service to apply at a reduced rate, the zero rate or to be exempt. As the VAT Directive does not provide for such treatment to apply to hiring suits, dresses or costumes, these services apply at the standard VAT rate.
