Tuesday, 8 November 2016

Ceisteanna (125)

Paul Murphy

Ceist:

125. Deputy Paul Murphy asked the Minister for Finance if he or his Department has considered tax exemptions, VRT, motor tax or other for a charity (details supplied); and if he will make a statement on the matter. [33709/16]

Amharc ar fhreagra

Freagraí scríofa (Ceist ar Finance)

Exemptions and reliefs from Vehicle Registration Tax are provided for in sections 134 and 135 of the Finance Act 1992 (as amended). No provision is made for motorcycles such as those in the details provided.

In relation to VAT, charities and non-profit groups engaged in non-commercial activity are exempt from VAT under the EU VAT Directive (Council Directive 2006/112/EC) with which Irish VAT law must comply. This means they do not charge VAT on the services they provide and cannot normally recover VAT incurred on goods and services that they purchase. This matter was examined last year by a Working Group comprised of representatives from the Department of Finance, the Revenue Commissioners and the Irish Charities Tax Reform (ICTR) Group, following representations made by the ICTR Group. The report was published in October last year and is available on my Department's website. In my Budget Day speech I have asked my officials to engage again with this Working Group with a view to reviewing the options available to provide compensation for charities as regards the burden of VAT.