Dáil Éireann Debate, Tuesday - 22 October 2019
148. Deputy Carol Nolan asked the Minister for Finance if he will apply the 0% VAT rate to food supplements on 1 November 2019 and legislate for the preservation of 0% VAT on vitamins and food supplements; and if he will make a statement on the matter. [43231/19]
Amharc ar fhreagraAs the Deputy is aware, the VAT rating of goods and services is subject to the requirements of EU VAT law with which Irish VAT law must comply. Irish VAT legislation does not provide a zero rate for food supplement products; instead there is a legislative provision for zero rating food and drink. Article 110 of the VAT Directive 2006/112 is the basis for the zero rate for food in Irish VAT law. Under that Article, Member States which, at 1 January 1991, were applying zero rates or reduced rates of VAT lower than the minimum rate of 5% may continue to apply those rates. Member States are not permitted under that provision to introduce new derogations or extend the scope of the derogations existing as at 1 January 1991. The legislative provision for food and drink was in place on 1 January 1991, however there was no legislative provision for food supplement products and therefore they cannot be legally zero rated.
I will be introducing a reduced rate of VAT of 13.5% to all food supplement products in Finance Bill 2019 which will take effect from 1 January 2020. Food supplement products currently liable to the standard rate of VAT (23%) and food supplement products that were zero rated on a concessionary will be liable to the reduced rate of VAT (13.5%) from 1 January 2020.
Foods for specific groups such as infant follow-on formulae and infant foods, foods for special medical purposes and specially formulated foods (e.g. total diet replacement for weight control) will remain zero rated. These are well established and defined categories of food that are essential for vulnerable groups of the population. Fortified foods, such as yoghurts and cereals fortified with vitamins and minerals, will also remain zero rated as they are food.
Folic acid, vitamin and mineral human oral products which are licenced or authorised as medicines by the Health Products Regulatory Authority (‘HPRA’) will remain zero rated under a different VAT provision.
