Joan Burton (Dublin West, Labour)
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Question 219: To ask the Minister for Finance his views on the charging of VAT on safety equipment used in sports activity; if he will introduce reductions in the VAT rate on safety equipment used in sports activity in budget 2009; and if he will make a statement on the matter. [31977/08]

Brian Lenihan Jnr (Dublin West, Fianna Fail)
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The Deputy will be aware 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 relation to the VAT rate that applies to safety equipment used in sports activity, 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. As safety equipment used in sports activity was not subject to the zero rate on 1 January 1991 it is not possible to apply the zero rate to the supply of such products. In addition, Member States may only apply the reduced VAT rate to those goods and services which are listed under Annex III of the EU 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 safety equipment for general use. The reduced rate therefore cannot be applied to the supply of safety equipment used in sports activity. In this respect, the only rate of VAT that can apply to the supply of safety equipment used in sports activity is the standard VAT rate which in Ireland is 21%.