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

VAT is a tax on consumption and is applied to supplies being made by a person and not to supplies received by them. In this context, it is not possible under EU VAT law, with which Irish VAT law must comply, to introduce VAT exemptions based on services received, nor to introduce an exemption based on the recipient of a service.

Non-profit groups engaged in non-commercial activity, including those involved in mountain rescue, are exempt from VAT under the EU VAT directive. This means they do not charge VAT on the services they provide and cannot recover VAT incurred on goods and services that they purchase. Non-entitlement to VAT deductibility is a general feature of VAT exemption.

There is no provision in either European law or Irish VAT law to allow a zero-rating or exemption for supplies of this nature.