Dáil Éireann Debate, Thursday - 11 November 2021
237. Deputy Catherine Murphy asked the Minister for Transport if he has consulted with the Minister for Finance in respect of seeking to have included among VAT exempt services that the driver education sector be included (details supplied); and if not, his plans to engage the Minister for Finance on this issue. [55405/21]
Amharc ar fhreagraThe setting of VAT is a matter for my colleague, the Minister for Finance, and I have no role in it.
The Revenue Commissioners' VAT Treatment of Education and Vocational Training, attached here, www.revenue.ie/en/tax-professionals/tdm/value-added-tax/part03-taxable-transactions-goods-ica-services/Services/services-education-vocational-training.pdf, sets out clearly the types of training and courses which can be VAT exempt.
Section 6.2 states that "driving lessons are generally subject to VAT at the reduced rate. However, exemption continues to apply to driving lessons where the lessons concern vehicles which are designed or constructed for the carriage of 1.5 tonnes of goods or more, or for the carriage of 9 persons or more (including the driver)."
This provision complies with Section 6.1, which sets out the criteria which must be met for the provision of training or education to be VAT exempt:
- "It must be vocational in nature; that is, it must be directed towards an occupation and its associated skills
- It must be provided to improve the vocational rather than the personal skills of the trainee
- The vocational skills that the trainee acquires can be transferable from one employment to another, or to self-employment
- The training will generally be provided by means of a structured programme, have concise aims, objectives and clear anticipated outcomes
- There should be a clear trainee/trainer relationship between the student and the teacher or instructor.
Where any of the above conditions are not met or the course is primarily directed towards personal development or undertaken for recreational purposes, the course will be subject to VAT at the appropriate rate."
