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

I thank the Deputy for that information. The European Commission's action plan on VAT was adopted on 7 April 2016. It contains a proposal to consider VAT rate policy across the EU in 2017. The action plans proposals on rates may offer member states more flexibility in the future in determining VAT rates applicable to goods and services. We will avail of it if it comes through. I am sure it will consider comparisons like those the Deputy referenced and the VAT situation in Denmark.

VAT refunds are quite significant. In 2014, there was a refund of €642,000 on donated medical equipment, in excess of €2.9 million for disability equipment, €18,000 for water rescue craft and equipment, in excess of €100,000 for exports by philanthropic organisations and the disabled drivers' fund received a refund in excess of €5 million. The refund system is working and delivers quite a lot of money to the areas to which the Deputy referred.

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However, the best course to pursue now is to await the result of the EU review because we are very constrained by EU law on what we can do in VAT. If the EU provides us with the flexibility to move in the direction suggested by the Deputy, then we will not be reluctant to move.

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