Darragh O'Brien (Fianna Fail) | Oireachtas source

I would like to draw the Minister of State's attention to a situation that has come to light in regard to VAT exempted education activities. I will probably table a recommendation on Report Stage to try to address this issue.

A number of education facilities, particularly conference and retreat centres, that provide accommodation on a bed and breakfast basis, have been recently informed by Revenue that should revenues from their bed and breakfast activity exceed €37,000 per annum all other revenue above that threshold, in respect of other activities at the centres, will be subject to VAT. I thought that advice to be very strange. I am speaking in this regard of retreat centres that hold weekend activities, in respect of which they provide accommodation on a bed and breakfast basis, whose income on that basis would exceed €37,000 per annum. I would have thought that once the threshold of €37,000 was exceeded only the bed and breakfast activity would become subject to VAT. According to the tax advice they have received, which could be wrong, once the €37,000 per annum threshold is exceeded all of the activities, including conference and educational fees, are subject to VAT. I accept the Minister of State may not be in a position to respond to my query today.