Seanad debates
Tuesday, 3 December 2019
Finance Bill 2019: Committee Stage (Resumed)
2:30 pm
Michael D'Arcy (Wexford, Fine Gael) | Oireachtas source
I will not go over what Senator Horkan highlighted because much of it was cases presented. This is not a revenue-raising exercise. Changing the VAT rate on food supplements will result in a net neutral figure because while some supplements will go from 0% to 13.5%, others will go from 23% to 13.5%. That fact is often ignored. This must be clarified because people had differing views on which VAT rate applied and different companies were paying different VAT rates. This brings clarity to the entire sector and it is being concluded. It is not legally possible to apply the 0% rate to food supplements and the European Commission has confirmed its agreement with Revenue's understanding of the matter. Should the amendment not be accepted, the VAT rate of food supplements will be 23%. If this is passed, it will not be 13.5%, but 23%.
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