Breeda Moynihan-Cronin (Kerry South, Labour)
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Question 275: To ask the Minister for Finance if his Department has plans to extend the VAT exemption, which is currently available to fishermen who own boats of 15 tons and over, to smaller fishermen; and if he will make a statement on the matter. [9739/07]

Brian Cowen (Laois-Offaly, Fianna Fail)
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I presume the Deputy is seeking an extension to sea-fishing boats of 15 tons or less of the zero-rating that applies to the supply, modification, repair and maintenance and hiring of such boats that are over 15 tons. The position is that the VAT regime and indeed the rating of all goods and services is subject to the requirements of EU VAT law with which Irish VAT law must comply. Under EU VAT law we are precluded from extending the zero VAT rating regime. However, VAT registered fishermen can claim recovery of VAT suffered on boats of 15 tons or less and on their other business inputs in the normal way on their VAT returns.

An unregistered fisherman may claim repayment of any VAT incurred on the purchase, intra-Community acquisition, importation, hire, maintenance and repair of sea-fishing vessels of a gross tonnage of not more than 15 tons, provided the fishing vessel concerned has been the subject of a grant or loan from An Bord Iascaigh Mhara. In addition, unregistered fisherman may claim repayment of VAT on the purchase, intra-Community acquisition, importation, hire, maintenance and repair of specified fishing equipment for use in such vessels. The following are specified fishing equipment: anchors, autopilots, bilge and deck pumps, buoys and floats, compasses, cranes, echo graphs, echo sounders, electrical generating sets, fish boxes, fish finders, fishing baskets, life boats and life rafts, marine lights, marine engines, net drums, net hauliers, net sounders, radar apparatus, radio navigational aid apparatus, radio telephones, refrigeration plant, trawl doors, trawl gallows and winches.

Application for repayments by unregistered fishermen should be made on Form VAT 58A to the Central Repayments Office, Revenue Commissioners, The Plantation, Monaghan (Telephone 047-81425). Applications for repayment must be submitted within four years from the end of the taxable period to which the claim relates.