Dáil Éireann Debate, Wednesday - 5 October 2022
108. Deputy Jennifer Whitmore asked the Minister for Finance if he will consider reducing VAT on all reusables to make reusable items more affordable; if he will consider making period pants 0% VAT, similar to other sanitary products given that reusable period pants are a sanitary product; and if he will make a statement on the matter. [48854/22]
Amharc ar fhreagraThe VAT rating of goods and services is subject to EU VAT law, with which Irish VAT law must comply. In general, the Directive provides that all goods and services are liable to VAT at the standard rate unless they fall within Annex III of the Directive, in respect of which Member States may apply either one or two reduced rates of VAT. Ireland currently operates two reduced rates of VAT, 13.5% and 9%, as permitted by the Directive. In addition, since April 2022, a limited number of goods and services within Annex III can have a zero rate of VAT applied. The VAT Directive does not permit a distinction to be drawn between similar products based on their reusability.
As I announced in Budget 2023, the 9% VAT rate applied to limited number of period products, including period pants, will be reduced to zero from 1 January 2023.
