Liz McManus (Wicklow, Labour)
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Question 339: To ask the Minister for Finance if his attention has been drawn to the fact that the VAT on the sale of worms for environmental waste management purposes is at the exorbitant rate of 21%; if he will consider lowering the rate; and if he will make a statement on the matter. [21158/05]

Brian Cowen (Laois-Offaly, Fianna Fail)
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The position is that the VAT rating of goods and services is subject to the requirements of EU VAT law, with which Irish VAT law must comply. The sale of worms is liable to the standard VAT rate of 21%.

Member states can apply the reduced VAT rate only to those goods and services which are listed under annex H of the EU sixth VAT directive. As the sale or supply of worms is not an item listed under Annex H, it would not be possible to apply the reduced VAT rate to such products. In addition, it would not be possible to apply a zero rate to such goods, as EU law precludes the addition of any goods or services to those already liable at the zero VAT rate.