Neasa Hourigan
Ceist:46. Deputy Neasa Hourigan asked the Minister for Finance if he will consider reducing the VAT rate on clothing rentals; and if he will make a statement on the matter. [50490/22]
Amharc ar fhreagraWednesday, 12 October 2022
Ceisteanna (46)
Freagraí scríofa
I am advised by Revenue that the VAT rating of goods and services is subject to the requirements of EU VAT law, with which Irish VAT law must comply. In general, the EU VAT Directive provides that all goods and services are liable to VAT at the standard rate, unless they fall within the categories of goods and services specified in Annex III of the VAT Directive, in respect of which Member States may apply a lower rate of VAT. The supply of hire or rental of clothing is not specified in Annex III and is therefore, liable to VAT at the standard rate, currently 23%.
Consequently I am not in a position to reduce the VAT rate on clothing rentals.