Eoghan Murphy (Dublin South East, Fine Gael)
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Question 114: To ask the Minister for Finance his plans to reduce national car test VAT rate to 13% to bring it in line with the VAT rate for other services. [23717/11]

Michael Noonan (Limerick City, Fine Gael)
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I am advised by the Revenue Commissioners that the repairing or maintaining of movable goods, including motor vehicles, is liable to VAT at the reduced rate of 13.5% in accordance with paragraph 20(1), Schedule 3 of the Value-Added Tax Consolidation Act 2010. The service of vehicle testing, that entails an inspection of a vehicle rather than its repair or maintenance, is liable to VAT at the standard rate of 21% in accordance with section 46(1)(a) of the VAT Consolidation Act. There is no provision under the EU VAT Directive that would allow for a reduced VAT rate to apply to testing services.