Dáil Éireann Debate, Thursday - 26 November 2020
93. Deputy Joe Carey asked the Minister for Finance if he will review the VAT rates for vaccines particularly those administrated by injection such as for flu, pneumonia and a possible Covid-19 vaccine, which are rated at 21% while all medicines that are administrated orally are zero rated; and if he will make a statement on the matter. [32809/20]
Amharc ar fhreagraThe VAT rates applying in Ireland are subject to the requirements of EU VAT law with which Irish VAT law must comply. In order for a zero rate of VAT to be applied to a good or service, that good or service must have applied at the zero rate on 1 January 1991 and have continued to apply at that rate since. No new items may be charged at the zero rate, where they had not been subject to the zero rate before 1991. In Ireland the zero VAT rate applies to oral medicines, including oral medicines for animals, as they were subject to the zero rate on and since 1 January 1991. However, non-oral medicines were not subject to the zero rate on 1 January 1991, so it is not legally possible to apply the zero rate to them now.
However, Ireland has been supportive of measures to respond to COVID-19 in the area of VAT. These measures include relief on VAT at import of goods to combat the outbreak, and the zero-rating to the supply and intra-community acquisition of PPE, hand sanitiser, thermometers, oxygen and the like, and were implemented by the Revenue Commissioners as part of Ireland's response to the public health emergency.
In addition to the above, the European Commission has recently presented a proposal to provide for relief from VAT for the supply of COVID-19 vaccines when available, as well as testing kits. Ireland supports the proposal and expects it to be finalised soon.
