Tony Gregory (Dublin Central, Independent)
Link to this: Individually | In context

Question 142: To ask the Minister for Finance if he will review the requirement on elderly people who live alone to pay 21% VAT on the cost of providing a carer in their homes; and if he will make a statement on the matter. [39724/06]

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

The application of VAT in these cases is governed by EU law. This requires that private providers of homecare services must charge VAT at the appropriate rate of up to 21%. 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.

Michael Lowry (Tipperary North, Independent)
Link to this: Individually | In context

Question 143: To ask the Minister for Finance if there are proposals to exempt sporting and voluntary bodies from stamp duty; the estimated annual cost of such a proposal; if a similar proposal exists to refund VAT to sporting and voluntary groups; the estimated annual cost of the proposed VAT refund; and if he will make a statement on the matter. [39747/06]

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

As the Deputy is aware, I do not comment on possible changes ahead of the Budget. I am also informed by the Revenue Commissioners that they are unable, due to data difficulties, to provide a cost for introducing an exemption from stamp duty for sporting bodies.

The Deputy may already be aware of the fact that an exemption from stamp duty is provided for in the stamp duty code in respect of a conveyance, transfer or lease of land made for charitable purposes to a body of persons established for charitable purposes only. This exemption is confined to bodies of persons which are recognised under law as having been established for charitable purposes only in which case the entirety of the activities carried on by the body in question must be charitable in nature.

In this regard, voluntary sporting bodies that do not have this charitable exemption are liable to stamp duty in the normal manner. However, there are separate relieving provisions in the tax code for not-for-profit and member-controlled sporting bodies. Amateur and athletic associations are not liable to income tax. In addition, a generous capital gains tax exemption is available to sports bodies where they dispose of a property and the proceeds are re-invested in new assets for the promotion of the sport in question. In this situation, capital gains tax is not payable. In addition, sporting organisations can avail of the special donations scheme. Where donations are made to qualifying sporting associations, the Revenue Commissioners will apply relief on the donation at the donor's marginal tax rate and refund the relief to the sports body in question.

I am also informed by the Revenue Commissioners that it is not possible to furnish figures of the VAT paid by exempt sporting and voluntary bodies on their purchases of goods and services from VAT registered bodies, as the information furnished on VAT returns does not require the yield from particular consumers to be identified.

The position is that charities and non-profit groups engaged in non-commercial activity are exempt from VAT under the EU Sixth VAT Directive, with which Irish VAT law must comply. This means they do not charge VAT on the services they provide and cannot recover VAT incurred on goods and services that they purchase. Essentially only VAT registered businesses which charge VAT are able to recover VAT.