Tom Hayes (Tipperary South, Fine Gael)
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Question 168: To ask the Minister for Finance if a reduction on the VAT applied to the installation of domestic water softening units will be considered. [15197/09]

Brian Lenihan Jnr (Dublin West, Fianna Fail)
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With regard to the VAT applied to domestic water softening units, or indeed any other goods and services, it is important to bear in mind that the VAT treatment of goods and services is subject to EU VAT law with which Irish VAT law must comply. In this regard, it is not possible to apply the reduced rate of VAT to water softening units which are subject to the standard 21.5% VAT rate.

However, I would point out that the reduced VAT rate of 13.5% may currently be applied to products which are provided under a single supply and install contract where the VAT exclusive cost of the goods does not exceed two-thirds of the total VAT exclusive charge to the customer.