I am advised by The Revenue Commissioners that the VAT rating of goods and services is subject to EU VAT law, with which Irish VAT law must comply. In accordance with the EU VAT Directive, the supply of the rental of a disability aid is considered to be a service of hiring and is liable to VAT at the standard rate, currently 23%. The VAT Directive provides for particular categories of goods and services to which a Member State may apply a lower VAT rate or exempt from VAT. Under Irish VAT legislation, the supply of a range of medical equipment and appliances, which include invalid carriages (excluding mechanically propelled road vehicles), orthopaedic 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. However, it is not possible under the requirements of EU law to extend the Order to include the rental of disability aids.
