Michael McGrath (Cork South Central, Fianna Fail) | Oireachtas source

I move amendment No. 152:

In page 130, between lines 23 and 24, to insert the following:“VAT treatment in respect of children’s footwear and clothes

44.The Minister shall within 6 months of the passing of this Act, prepare and lay before the Oireachtas a report examining the options for reviewing, in respect of children’s footwear and clothes, the size limits that are currently zero rated for VAT purposes subject to our obligations under EU law.”.

This is the old nugget I raised last year as well. I know Ministers for Finance are very reluctant to talk about VAT on children's footwear and clothes but, in essence, what I am seeking is an update, if there is one, as to whether or not the Revenue Commissioners have had any engagement with trade associations in this regard. In summary, the position is that we cannot change the relevant age of the child at which zero-rating ceases to apply, which is currently 11. The question, however, is what the relative sizes are. According to the Revenue and the Department, "The practical application of the measure is that zero rating applies to children's clothing of sizes up to and including a 32 in. chest, a 26 in. waist or 152 cm in height; and children's footwear up to and including a size 5.5 or 38."

We had a good discussion on this last year, primarily with the Minister of State, Deputy D'Arcy. I asked that Revenue would engage with the trade associations again and undertake some consultation on whether the sizes that are deemed by Revenue to be appropriate for children under the age of 11 are still applicable or should be reviewed. That was the thrust of the conversation last year and hopefully there will be an update.