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

I thank the Deputy. I will put the initial reply on the record because it deals with some of the issues.

As the Deputy will be aware, VAT on supplies of Covid-19 testing kits were subject to a temporary zero rate until 31 December 2022 as the result of an EU Commission derogation. While recognising the success of the Government’s vaccination programme, I have decided that Covid-19 test kits should be subject to a zero rate of VAT on an ongoing basis. This is because there are still significant levels of this virus in general circulation. My decision is reinforced by the public health guidelines which continue to advise caution, in particular recommending self-isolation if one has symptoms of Covid-19 and recommending Covid testing for certain vulnerable groups.

I propose that the zero rating of Covid-19 testing kits will be put on a legislative basis at the first available legislative opportunity; in the meantime, the Revenue Commissioners have agreed to operate it with effect from 1 January 2023 on an administrative basis. To answer the Deputy’s question, I will legislate for it with the agreement of the House at the first opportunity in the coming weeks or short number of months, whenever that opportunity arises, to make sure it is properly underpinned legislatively. I will not put an end date on it, so the zero rate is effective and will continue until we decide otherwise but I do not anticipate that will be the case.

See this speech in context