Paschal Donohoe (Dublin Central, Fine Gael) | Oireachtas source

I thank the Deputy. The VAT rating of goods and services is subject to the requirements of EU VAT law with which our law must comply. Following an agreement finalised earlier this year, the VAT directive now permits each member state to apply a zero rate to seven categories within annex III. These are categories one to six as well as category 10(c). These categories for a zero rate do not apply to car seats, however. Therefore, it is not possible under the EU directive to make the change being sought here.

On the issue of school uniforms, it should be noted that up until the annex III change, Ireland had a derogation that provided for children’s clothing and footwear to be subject to the zero rate for children up to and including 11 years. The zero rating applied according to the following criteria: all children's clothing of sizes up to and including 32 inch chest or 26 inch waist, and children's footwear up to and including size 5.5, which is a 38 continental or equivalent size. What the annex III change has done from a zero VAT rate perspective with regard to children’s clothing and footwear is allow us to maintain the existing derogation going forward. It does not, however, permit us to expand its scope to all school uniforms that do not meet the above criteria.

For these reasons, I am not able to accept the Deputy’s amendments. Obviously, if the Deputy would like me to send him on a note between now and Report Stage making clear why these items are out of the categories to which I referred, I will be very happy to do so if it would be of help to him.