Dáil Éireann - Volume 495 - 03 November, 1998
Written Answers. - Value Added Tax.
Mr. S. Ryan Mr. S. Ryan
382. Mr. S. Ryan asked the Minister for Finance the rate of VAT liable to traders established in the State for the supply, installation and monitoring of emergency response alarm systems; if a company operating from outside the State, for example, Northern Ireland and supplying, installing and monitoring of a similar type of system is VAT free; and if he will make a statement on the matter. [21395/98]
Minister for Finance (Mr. McCreevy) Charlie McCreevy
Minister for Finance (Mr. McCreevy): Traders from outside the State who do not have an establishment in the State but are making supplies here, are obliged to register and account for VAT regardless of the level of their turnover.
The rates of VAT applicable to non-State traders providing goods or services in Ireland are, generally, the same as those which apply to domestic providers.
The supply and installation of alarm systems where they are installed as fixtures is liable to VAT at the lower rate of 12.5 per cent. This subject to the condition that the cost of the equipment itself (that is, the cost, excluding VAT, to the service contractor) must not exceed two-thirds of the total charge to the customer.
If the cost of the equipment exceeds two-thirds of the total price, or if the equipment is simply purchased without installation, then the standard VAT rate of 21 per cent applies.
In either case if the supply is inclusive of a monitoring charge then the total supply is also subject to VAT at 21 per cent.
Maintenance is normally liable at the lower rate of 12.5 per cent.
Dáil Éireann 495 Written Answers. Value Added Tax.