Róisín Shortall (Dublin North West, Labour)
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Question 307: To ask the Minister for Finance if it is correct that a VAT rate of 21% is applied to the bill for a social alarm monitoring service; if a VAT exemption applies to the purchasing of such a service by a person with disabilities or a visually impaired person; and if he will make a statement on the matter. [10068/06]

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. Member states are only able to apply the reduced VAT rate to those goods and services which are listed under annex H of the EU Sixth VAT Directive. As the service referred to by the Deputy is not listed under annex H, it would not be possible to apply the reduced VAT rate to monitoring fees charged by service providers for socially monitored alarms. The monitoring of home security systems are, therefore, subject to the standard VAT rate of 21%.

In regard to the issue of allowing a VAT exemption on the purchase of such a service by a person with disabilities or a visually impaired person, the position is that the rate of VAT which applies to a particular good or service is determined by the nature of the good or service, and not by the status of the consumer. There is no provision in European VAT law that would allow for the introduction of a VAT exemption on the purchase of such services by consumers with disabilities or a visually impaired person. However, under the Value Added Tax (Refund of Tax) (No. 15) Order 1981, it is possible to obtain a VAT refund in respect of the purchase of a pendant alarm system as it is considered a medical device for the purpose of this refund order. Applicants should contact the Revenue Commissioners, VAT Repayments (Unregistered Section), Kilrush Road, Ennis, County Clare. VAT on monitoring and maintenance fees are not recoverable.

In addition, the Deputy may be aware of the community support for older people scheme which is operated by the Department of Community, Rural and Gaeltacht Affairs. The purpose of the scheme is to encourage and assist the community's support for older people by means of a community-based grant scheme to improve the security of its older members. Funding under the scheme can be provided for small-scale security equipment designed to strengthen points of entry to the dwelling, including security lighting, smoke alarms and for the once-off cost of installing socially monitored personal alarm systems. Annual monitoring fees or maintenance fees associated with socially monitored alarm systems are not provided for under the scheme. The VAT refund for the purchase of a personal security alarm by or on behalf of a disabled or elderly person combined with the community support for older people scheme outlined above are important measures that go towards ensuring that those who are most in need of security systems can avail of them.