Dáil Éireann Debate, Wednesday - 17 January 2024
313. Deputy Michael Creed asked the Minister for Finance what consideration has been given by him to a more favourable VAT and customs regime for products deemed to be more environmentally friendly; and if he will make a statement on the matter. [56511/23]
Amharc ar fhreagraThe 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%. Member States can also apply a reduced rate lower than the 5% minimum and a zero-rate to certain categories in Annex III.
There is no provision in the VAT Directive to provide for separate treatment for goods deemed to be more environmentally friendly.
Custom duties are determined by the value, not the nature, of goods being imported into Ireland from a non-EU country (including the UK).Goods with an intrinsic value (the value of the goods alone excluding transport, insurance and handling charges) of €150 or less are not charged custom duties. Additional charges may apply to certain named goods (e.g. excise duties on alcohol and tobacco). These charges are also a matter of EU law.
