Dáil Éireann Debate, Tuesday - 24 July 2018
330. Deputy Joan Burton asked the Minister for Finance the products and services to which the second reduced rate of VAT applies; when the reduced rate first applied; and if he will make a statement on the matter. [34862/18]
Amharc ar fhreagraThe 9% reduced VAT rate was introduced in the Finance (No. 2) Act 2011 with effect from 1 July 2011 as part of an initiative package to boost tourism and stimulate employment in the sector.
The majority of goods and services to which the 9% rate applies date from 1 July 2011. These include:
- Supply of food and drink (excluding alcohol and soft drinks) in the course of catering or by means of a vending machine;
- Hot take-away food and hot drinks;
- Hotel lettings, including guest houses, caravan parks and camping sites;
- Admissions to cinemas, theatres, certain musical performances, museums and art gallery exhibitions;
- Amusement services of the kind normally supplied in fairground or amusement park services;
- Provision of facilities for taking part in sporting activities by a person other than a non-profit making organization, including green fees charged for golf and subscriptions charged by non-member-owned golf clubs;
- Printed matter, e.g., newspapers, brochures, leaflets, programmes, maps, catalogues, printed music (excluding books); and
- Hairdressing services.
In order to comply with jurisprudence of the Court of Justice of the EU (CJEU), the Finance Act 2012 provided that admissions to historic houses, open farms and built and natural heritage facilities became subject to the 9% rate from 1 January 2012. They had been exempt from VAT prior to this change.
Finally, with effect from 1 January 2015, the 9% VAT rate was extended to apply to the supply of horses - other than those intended for food or agriculture - greyhounds and the hire of horses. This followed a CJEU case taken against Ireland by the European Commission. The 4.8% reduced rate had previously applied to these supplies.
