Tom Hayes (Tipperary South, Fine Gael)
Link to this: Individually | In context

Question 166: To ask the Minister for Finance if he will waive the VAT for specialised items of medical equipment when the fund-raising is done through voluntary means; and if he will consider waiving the VAT on a Lokomat purchased by an organisation (details supplied). [36089/09]

Brian Lenihan Jnr (Dublin West, Fianna Fail)
Link to this: Individually | In context

The VAT rating of goods and services is subject to the requirements of EU VAT law with which Irish VAT law must comply. 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 medical appliances such as the Lokomat machine were 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 VAT Directive. Annex III allows the provision of a reduced rate for the supply of medical equipment, aids and other appliances to alleviate or treat disability which is used for the exclusive personal use of a disabled person. However this provision does not extend to the supply of medical equipment for the use of multiple persons, which is the intended use by Cois Ceim Eile of the Lokomat machine. In this case the only rate that can apply to the Lokomat machine is the standard VAT rate of 21.5%.

However, there is an option open to Cois Ceim Eile to apply for a VAT Refund for the purchase of the Lokomat machine under the VAT refund scheme for certain donated medical instruments and appliances (SI 58/92). The main conditions relating to this refund scheme are that:

the appliance or instrument is donated to a hospital;

the appliance costs €25,390 or more in value (exclusive of tax);

the appliance is designed and manufactured for use solely in medical research or in diagnosis, prevention or treatment of illness;

the appliance is purchased through voluntary donations, such that no part of the funds used in the purchase is provided directly or indirectly by the State, a State body or any public or local authority, which includes lottery funding; and,

the appliance is subject to a recommendation by the Minister for Health and Children that, having regard to the requirements of the health services in the State, a refund of tax would be appropriate.