Joan Burton (Dublin West, Labour)
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Question 338: To ask the Minister for Finance the grants schemes or reductions in VAT charges in existence for the support of sports clubs attempting to purchase buses or mini-buses; if he will introduce or enhance such schemes in the near future; and if he will make a statement on the matter. [30831/08]

Brian Lenihan Jnr (Dublin West, Fianna Fail)
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In relation to the VAT treatment of purchases by sporting organisations, the position is that bodies supplying educational services and non-profit organisations are exempt from VAT under the EU 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. In this respect, sporting organisations purchasing buses are liable to pay VAT on such purchases.

With regard to grant schemes available for sports clubs to purchase buses or mini-buses, I am informed by the Department of Arts, Sport and Tourism that under the sports capital programme, which is administered by that Department, funding is allocated to sporting and community organisations at local, regional and national level throughout the country towards the provision of sporting facilities. The programme is advertised on an annual basis. It is open to sporting and community organisations, should they have a project which satisfies the terms and conditions of the programme, to apply when the next round of the programme is announced.