Paudge Connolly (Cavan-Monaghan, Independent)
Link to this: Individually | In context

Question 515: To ask the Minister for Finance if he will consider dropping VAT on defibrillators; and if he will make a statement on the matter. [25291/05]

Brian Cowen (Laois-Offaly, Fianna Fail)
Link to this: Individually | In context

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. Under the sixth VAT directive, member states may retain the zero rates on goods and services which were in place on 1 January 1991, but cannot extend the zero rate to new goods and services. As the majority of defibrillators were not subject to the zero rate on 1 January 1991 it is not possible to apply the zero rate to the supply of such products. Implantable defibrillators are subject to the zero rate.

In addition, member states may only apply the reduced VAT rate to those goods and services which are listed under Annex H of the EU sixth VAT directive. While Annex H does include the supply of medical equipment for the exclusive personal use of a disabled person, it does not include defibrillators for general use. The reduced rate cannot be applied to the supply of defibrillators. Therefore, the only rate of VAT that can apply to the supply of defibrillators is the standard VAT rate of 21%.