Dáil Éireann Debate, Tuesday - 25 July 2023
320. Deputy Eoin Ó Broin asked the Minister for Finance his views on the proposal to reduce VAT on repair services, such as cobblers and clothing menders, as a measure to support the circular economy. [36637/23]
Amharc ar fhreagraI 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 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. Currently, Ireland has two reduced rates of 13.5% and 9%.
A reduced VAT rate of 13.5% already applies to the supply of repair services of cobblers and clothing menders.
