Michael Noonan (Limerick City, Fine Gael) | Oireachtas source

The discussion is about standardising the form and the format of returns. There is no suggestion that there will be a standardised VAT rate. However, VAT is already controlled by European directives and we are quite limited with regard to what we can do in the area of VAT. For example, when we were discussing the 9% VAT in the hospitality area, people were suggesting that we should put restaurants and hotels on a 9% rate and other groups on an 11% rate. One of the rules under the directives is that we can only have two lower VAT rates. We have rates of 13.5% and 9%. I often hear the suggestion that I should reduce some areas to a 5% rate. We cannot have a third lower VAT rate. There are significant restrictions in that regard, but Europe will not dictate to us what rate should apply in particular areas.