Brendan Griffin (Kerry South, Fine Gael)
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To ask the Minister for Finance if he will seek an extension of VAT reduction to the small pub trade in view of the labour intensive nature of the business and the role that small Irish pubs play in the tourism industry; and if he will make a statement on the matter. [53204/12]

Brendan Griffin (Kerry South, Fine Gael)
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To ask the Minister for Finance if he will consider the expansion of VAT reduction to the small pub trade, in view of the labour intensive nature of the business and the role that small Irish pubs play in the tourism industry; and if he will make a statement on the matter. [53097/12]

Michael Noonan (Limerick City, Fine Gael)
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I propose to take Questions Nos. 60 and 61 together.

I would point out that the services supplied by small pubs are treated for VAT purposes as those services supplied by restaurants and other such venues of hospitality. Catering supplied by small pubs is liable to VAT at the 9% VAT rate, as it is where supplied by a restaurant. Similarly, alcohol supplied by a small pub is liable to VAT at the standard VAT rate of 23%, the same as if it was supplied by a hotel, restaurant or larger pub. With regard to expanding the 9% rate to include the supply of alcohol by small pubs, the VAT rating of goods and services is constrained by the requirements of EU VAT law with which Irish VAT law must comply. The EU VAT Directive does not allow for the application of a reduced VAT rate to the supply of alcohol.