Dáil Éireann Debate, Tuesday - 7 November 2017
246. Deputy Pearse Doherty asked the Minister for Finance how and when he will implement the budget decision to put in place a VAT refund scheme for charities; and if he will make a statement on the matter. [46870/17]
Amharc ar fhreagraThe Deputy will be aware that I announced in the Budget the introduction of a VAT compensation scheme for charities, which will compensate them for the VAT they incur on their services. The scheme will be introduced in respect of VAT incurred in 2018 but will be paid in arrears in 2019. Details of the proposed scheme are available on my Department’s website.
Legislation for this scheme is not included in the current Finance Bill as it will be made by Ministerial Order on the basis of Section 103 of the Value-Added Tax Consolidation Act 2010 (Ministerial Refund Orders). One of the reasons that the scheme will not pay out until 2019 is that it will take time for the Revenue Commissioners to establish the necessary IT and administrative systems.
The VAT Refund Order establishing this scheme will be implemented over the course of 2018, taking into account all implications of the proposed change, including Revenue's practical implementation requirements. If it is deemed at any point that a change to primary legislation is required, this can be undertaken in Finance Bill 2018, but this will not delay the introduction of the scheme.
