Dáil Éireann - Volume 650 - 12 March, 2008
Written Answers. - Tax Code.
Deputy Michael Lowry Deputy Michael Lowry
Deputy Michael Lowry asked the Tánaiste and Minister for Finance if he plans to reduce VAT rate from the current level of 21% to 13.5% on defibrillators as many of these are purchased by community, sporting and voluntary organisations; and if he will make a statement on the matter. [10808/08]
Deputy Brian Cowen Deputy Brian Cowen
Deputy Brian Cowen: The position is that in matters relating to the VAT rating of goods and services, I am constrained by the requirements of EU VAT law with which Irish VAT law must comply. In this regard, I would point out that the rate of VAT that applies to a particular good or service depends on the nature of the good or service and not on the status of the consumer. In this case, there is no provision in EU law that would permit the removal or reduction of VAT based on the social or economic status of the consumer.
 In relation to the VAT rate that applies to defibrillators, the position is that under the VAT Directive, Member States may retain the zero rates on goods and services which were in place on 1 January 1991, but cannot extend the zero rate to new goods and services. The zero VAT rate cannot therefore be applied to defibrillators which are subject to the standard rate. In addition, Member States may only apply the reduced VAT rate to those goods and services which are listed under Annex III of the VAT Directive. While Annex III does include the supply of medical equipment for the exclusive personal use of a disabled person, it does not include defibrillators for general use. The reduced rate cannot be applied to the supply of defibrillators. Therefore the only rate of VAT that can apply to the supply of defibrillators is the standard VAT rate which in Ireland is 21%.
Dáil Éireann 650 Written Answers. Tax Code.