Eamon Gilmore (Dún Laoghaire, Labour)
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Question 475: To ask the Minister for Finance his plans to allow VAT to be refunded in respect of services such as the hire of home care workers; and if he will make a statement on the matter. [28314/06]

Seán Haughey (Dublin North Central, Fianna Fail)
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Question 490: To ask the Minister for Finance the reason nursing home care is subject to VAT; and if he will make a statement on the matter. [28805/06]

Eamon Gilmore (Dún Laoghaire, Labour)
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Question 497: To ask the Minister for Finance if he has plans to end the charging of VAT on home help and carer services; and if he will make a statement on the matter. [29015/06]

Brian Cowen (Laois-Offaly, Fianna Fail)
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I propose to take Questions Nos. 475, 490 and 497 together.

The position is that the VAT treatment of goods and services is governed by EU law with which Irish VAT law must comply. Where homecare services are provided directly by the Health Service Executive (HSE), they do not generally come within the scope of VAT, as Public Bodies are not regarded as taxable persons. This means that they do not charge VAT on the services they provide and cannot recover VAT incurred on their input costs.

However, where homecare services are provided by private companies for a consideration in the course or furtherance of business, the provider may be obliged to register and account for VAT at the appropriate rate depending on the type of service they provide. Homecare provided to individuals consists of a variety of services which may be liable to VAT at different rates. The current VAT treatment of such services is in accordance with EU Sixth VAT Directive with which Irish VAT law must comply. In addition, it would not be possible under EU Law to introduce a VAT refund scheme in respect of homecare services.

However, my Department is examining in consultation with the Department of Health and Children the scope within the relevant EU Directives to exempt the provision of such services from VAT in the future.