Joe McHugh (Donegal North East, Fine Gael)
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Question 107: To ask the Tánaiste and Minister for Finance his views on reducing the rate of VAT on defibrillators from 21% to 13.5% in view of the fact that they can save lives and are badly needed by many clubs throughout the country; and if he will make a statement on the matter. [16208/08]

Brian Cowen (Laois-Offaly, Fianna Fail)
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The position is that in matters relating to the VAT rating of goods and services, I am constrained by the requirements of EU VAT law with which Irish VAT law must comply. In this regard, I would point out that the rate of VAT that applies to a particular good or service depends on the nature of the good or service and not on the status of the consumer. Accordingly, there is no provision in EU law that would permit the removal or reduction of VAT based on the social or economic status of the consumer or community group.

In relation to the VAT rate that applies to defibrillators, the position is that under the 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. The zero VAT rate cannot therefore be applied to defibrillators which are subject to the standard rate.

In addition, Member States may only apply the reduced VAT rate to those goods and services which are listed under Annex III of the VAT Directive. While Annex III 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 which in Ireland is 21%.