Neasa Hourigan (Dublin Central, Green Party)
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245. To ask the Minister for Finance if he will outline the items of which the reduced VAT rate of 5% have been applied in the Irish context to date; and if he will make a statement on the matter. [29300/23]

Neasa Hourigan (Dublin Central, Green Party)
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247. To ask the Minister for Finance if he will outline the items of which the reduced VAT rate of less than 5% have been applied in the Irish context to date; and if he will make a statement on the matter. [29302/23]

Michael McGrath (Cork South Central, Fianna Fail)
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I propose to take Questions Nos. 245 and 247 together.

The 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 from VAT. Within its rates structure, the EU VAT Directive also allows historic VAT treatment to be maintained under certain conditions on certain goods and services not provided for in Annex III.

Currently Ireland has a standard VAT rate of 23% and two reduced rates of 13.5% and 9%. Ireland is also permitted to retain some historic VAT arrangements, under strict conditions.

In this context, the following reduced VAT rates apply in Ireland:

• Reduced rate of 13.5% applies to approximately 29% of activity and represents approximately 25% of VAT receipts. It includes home heating oil and solid fuels, construction, housing, labour intensive services and general repairs and maintenance.
• Reduced rate of 9% applies to approximately 12% of activity and represents approximately 6% of VAT receipts. It includes tourism and hospitality sectors to 31 August 2023, along with periodicals, and sporting facilities. It also includes the supply of gas and electricity to 31 October 2023.
• Super-reduced 4.8% rate applies to livestock by VAT registered farmers ( as per Annex VII of EU VAT Directive).
• Zero rate applies to 7 categories of Annex III of the EU VAT Directive. It accounts for 10% of activity and It applies to most food, books, children’s clothes and shoes, oral medicines, some medical equipment, the supply of services in connection with the operation of lightships and lighthouses and, from 1 May 2023, the supply and installation of solar panels.
• Exempt services include transport services, funerary services, supply of water, provision of education, financial services, medical services and services provided by charities.

Neasa Hourigan (Dublin Central, Green Party)
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246. To ask the Minister for Finance whether the reduced VAT rate of 5% has been applied to all 24 points of goods and services, as per the VAT Directive, to date; and if he will make a statement on the matter. [29301/23]

Neasa Hourigan (Dublin Central, Green Party)
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248. To ask the Minister for Finance whether the reduced rate of 0% VAT has been applied to a maximum of seven items as per the VAT Directive to date; and if he will make a statement on the matter. [29303/23]

Michael McGrath (Cork South Central, Fianna Fail)
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I propose to take Questions Nos. 246 and 248 together.

The 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 from VAT. Within its rates structure, the EU VAT Directive also allows historic VAT treatment to be maintained under certain conditions on certain goods and services not provided for in Annex III. Currently Ireland has a standard VAT rate of 23% and two reduced rates of 13.5% and 9%. Ireland is also permitted to retain some historic VAT arrangements, under strict conditions.

In this regard, Annex III of the VAT Directive lists those goods and services to which a reduced rate may be applied. Following changes made in April 2022, the 24 items of Annex III have been expanded to 33. Some of the original categories have also been amended. In addition, the VAT Directive now includes two new limitations on the use of Annex III by Member States. The first limits Member States to using a maximum of 7 categories to which a zero or super-reduced rate of VAT (rates lower than 5%) can be applied. The second limits Member States to using a maximum of 24 categories to which a reduced rate can be applied.

Ireland applies a zero rate to 7 out of 7 permitted categories, and a reduced rate to 19 out of 24 permitted categories.

Thomas Pringle (Donegal, Independent)
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249. To ask the Minister for Finance the estimated cost to the Exchequer of removing the 23% VAT rate on sunscreen products of SPF30 and above; and if he will make a statement on the matter. [29327/23]

Michael McGrath (Cork South Central, Fianna Fail)
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The VAT rating of goods and services is subject to EU VAT law, with which Irish VAT law must comply. In general, the Directive provides that all goods and services are liable to VAT at the standard rate unless they are exempt from VAT or fall within Annex III of the Directive, in respect of which Member States may apply reduced rates of VAT.

Under VAT law, there is no scope for a reduction in the rate of VAT on sunscreen products. The supply of sunscreen products is liable to the standard rate of VAT, currently 23%.