Dáil Éireann - Volume 556 - 05 November, 2002
Written Answers. - Tax Reliefs.
Mr. R. Bruton Mr. R. Bruton
292. Mr. R. Bruton asked the Minister for Finance if he will consider reducing the VAT rate on membership of health clubs and other sporting activities as a way of promoting more healthy lifestyles; and if he will make a statement on the matter. [20219/02]
Minister for Finance (Mr. McCreevy)
Minister for Finance (Mr. McCreevy): Not-for-profit sporting bodies are considered to be exempt and do not levy VAT on any fees they charge their members. However, not-for-profit golf clubs are in general required to levy VAT on the supply of commercial golf facilities above the registration threshold and the supply of such facilities is subject to VAT at 12.5%.
The provision by a person, other than a not-for-profit making organisation, of facilities for taking part in sporting activities is subject to the reduced rate of 12.5%. It would be possible to introduce a second reduced rate under annex H of the sixth VAT directive as low as 5% for activities considered to be sporting activities. However, such a second reduced rate has not been introduced on the grounds of loss of revenue to the Exchequer from all the goods and services which would benefit from such a reduced rate. I have no plans, therefore, to make a change on the lines suggested by the Deputy.
Dáil Éireann 556 Written Answers. Tax Reliefs.