Brian Cowen (Laois-Offaly, Fianna Fail)

The position is that home care services provided directly by the Health Service Executive, HSE, do not generally come within the scope of VAT, as public bodies are not regarded as taxable persons. This means that they do not charge VAT on the services they provide and cannot recover VAT incurred on their input costs. The package of services aimed at older people, announced by the Minister for Health and Children in the 2006 budget, are delivered through the HSE, by a range of providers including the HSE itself, voluntary groups and the private sector. These home care packages comprise a mixture of grants, contracted care services, therapeutic input and equipment and other such community services identified in the needs assessment as necessary to facilitate the older person to remain living in his or her own home.

However, where home care services are provided for by private companies for a consideration in the course or furtherance of business, the provider may be obliged to register and account for VAT at the appropriate rate depending on the type of service they provide. Home care provided to individuals consists of a variety of services which may be liable to VAT at different rates. The current VAT treatment of such services is in accordance with the EU Sixth VAT Directive with which Irish VAT law must comply. However, my Department is examining in consultation with the Office of the Revenue Commissioners and the Department of Health and Children the scope within the relevant EU directives to exempt the provision of such services from VAT in the future.

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