Paschal Donohoe (Dublin Central, Fine Gael)
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Question 11: To ask the Minister for Finance if he will consider including yoga studios in the sports and recreation facilities in the Finance Bill to enable these businesses to enjoy a lower rate of VAT; and if he will make a statement on the matter. [13144/11]

Michael Noonan (Limerick City, Fine Gael)
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VAT is charged on the supply of goods and services, and the rate applying is subject to the requirements of EU VAT law with which Irish VAT law must comply. The provision of sporting facilities is among a number of tourist related services being made subject to a new temporary lower reduced VAT rate of 9% from 1 July next. All other goods and services that apply at a reduced rate will continue to be liable at the 13.5% rate. I am advised by the Revenue Commissioners that certain goods and services that were at a reduced rate of VAT on 1 January 1991, under the provision of Article 118 of Council Directive 2006/112/EC, cannot be reduced below 12%; these are known as parked goods and services. It is not possible to apply the 9% VAT rate to services consisting of the care of the human body supplied in the course of a health studio business or similar business, such as a yoga studio, since this service is the subject of a parked rate. The rate of VAT on the provision of facilities for taking part in sporting activities by a person other than a non-profit making organisation can be reduced to 9% since this service was not the subject of a parked rate.