Dáil Éireann Debate, Wednesday - 28 April 2021
276. Deputy Jennifer Murnane O'Connor asked the Minister for Finance his plans to reduce the current 23% VAT rate that applies to menstrual cups to 0% to bring it into line with the rate that applies for other sanitary items. [21621/21]
Amharc ar fhreagraFrom 1st January 2021, following the last Finance Bill, menstrual cups have a reduced VAT rate of 13.5% applied to them.
As the Deputy may be aware, Ireland is the only country in the EU which applies a zero rate of VAT to period products. This was the rate that applied in 1991 and we have been able to maintain that rate under the provisions of the EU VAT Directive that allow for a zero rate to be maintained if it applied on and from 1st January 1991. The VAT Directive provides for the application of a reduced rate of VAT to such products in paragraph 3 of Annex III.
I can confirm that Ireland and a number of other Member States are looking for greater flexibility in the VAT directive to allow a zero rate to be applied to these newer period products. These discussions are connected to a wider debate on VAT Rates and any agreement on VAT rates must be agreed by every Member State.
