Dáil Éireann Debate, Tuesday - 6 February 2018
154. Deputy Tony McLoughlin asked the Minister for Finance his plans to make provisions in legislation to ensure that persons suffering from a wide range of illnesses here but that do not qualify for a long-term illness book can, when paying for medical equipment such as oxygen, be entitled to receive relief from VAT; and if he will make a statement on the matter. [5931/18]
Amharc ar fhreagraThe VAT rating of goods and services is subject to EU VAT law, with which Irish VAT law must comply. The supply of oxygen is liable to VAT at the standard rate, currently 23%, and as such I am constrained by the requirements of EU law from applying any rate of VAT lower than the standard rate to the sale of this product.
However, the EU VAT Directive provides for particular categories of goods and services where a Member State may apply a lower rate or exempt from VAT. Under Irish legislation, the supply of a range of medical equipment and appliances, which include invalid carriages (excluding mechanically propelled road vehicles), orthopedic appliances, deaf aids, walking frames and crutches, fall within one of these categories and are subject to the zero rate of VAT.
In addition, the Value-Added Tax (Refund of Tax) (No. 15) Order, 1981, provides in certain circumstances for the refund of VAT on goods which are aids or appliances and includes goods specially constructed or adapted for use that are purchased for the exclusive use of a person with a disability of a type specified for the purposes of the Order. An oxygen concentrator may qualify for a refund under the Order if the applicant satisfies the relevant criteria relating to disability; oxygen is not covered by the Order and there is no scope under the Directive to amend the Order to include oxygen.
