Joe Costello (Dublin Central, Labour)
Link to this: Individually | In context

Question 152: To ask the Minister for Finance his views on a matter (details supplied) regarding VAT rates; and if he will make a statement on the matter. [21401/11]

Michael Noonan (Limerick City, Fine Gael)
Link to this: Individually | In context

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 which was made subject to a new temporary lower reduced VAT rate of 9% from 1 July 2011. All other goods and services that had applied at the 13.5%, such as yoga studio services, reduced rate will continue to be liable at that rate.

Certain goods and services that were at a reduced rate of VAT on 1 January 1991, under the provision of Article 118 of the EU VAT Directive, 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.