Dáil Éireann Debate, Tuesday - 15 November 2022
193. Deputy Neasa Hourigan asked the Minister for Finance the reason that the reduction on VAT on newspapers from 9% to zero was not extended to periodicals; and if he will make a statement on the matter. [56114/22]
Amharc ar fhreagra194. Deputy Steven Matthews asked the Minister for Finance if a 0% VAT rate has been considered for Irish published magazines, similar to what is proposed for newspapers as of January 2023; and if he will make a statement on the matter. [56119/22]
Amharc ar fhreagraI propose to take Questions Nos. 193 and 194 together.
Given the critical role that newspapers play in our society at both local and national level, and the very challenging environment they have to operate in, I made the decision that the VAT rate on newspapers and electronically supplied newspapers be reduced from 9% to zero from 1 January 2023.
This measure has an estimated annual cost of €33m. The rate reduction is in line with the Government’s commitment to support an independent press and the Future of Media Commission’s recommendation on this matter.
Magazines and other publications such as news periodicals are not covered by this zero-rating. Therefore the second reduced rate of VAT of 9% will continue to apply to such periodicals.
Any move to zero-rate for periodicals would require the legislation to cover all periodicals in line with the principle of fiscal neutrality. This would mean that weekly magazines and sectoral publications covering sport, entertainment, fashion, health, etc. that are published regularly or occasionally would come within the scope of the zero rate of VAT.
The inclusion of periodicals because of its broad nature would increase the estimated cost of this measure by approximately €15m.
