Tom Neville
Ceist:139. Deputy Tom Neville asked the Minister for Finance his views on a matter (details supplied); and if he will make a statement on the matter. [22192/18]
Amharc ar fhreagraTuesday, 22 May 2018
Ceisteanna (139)
Freagraí scríofa
Mountain rescue services are treated in a similar manner to charities in that they are exempt from VAT under the EU VAT Directive. This means that they do not register for VAT and cannot recover VAT incurred on goods and services that they purchase. This non-entitlement to VAT deductibility is a general feature of VAT exemption.
However, in Budget 2018 I announced a VAT compensation scheme for charities which will be introduced in 2019 in respect of VAT expenses incurred in 2018. Charities will be entitled to a refund of a proportion of their VAT costs based on the level of non-public funding they receive, up to a total capped fund of €5 million. Where mountain rescue service operators meet the criteria of this scheme they can avail of the VAT compensation. Work on the introduction of this scheme has been commenced by officials of my Department and the Office of the Revenue Commissioners.