Kevin Humphreys (Dublin South East, Labour)
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Question 110: To ask the Minister for Finance the rate of VAT that applies to bicycle helmets; his views that it is appropriate to levy VAT on such a critical piece of safety equipment and in view of the fact that VAT does not apply to helmets in the UK; if he will consider changing the rules here so that no VAT rate applies to safety helmets; and if he will make a statement on the matter. [30769/11]

Michael Noonan (Limerick City, Fine Gael)
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The supply of safety equipment including bicycle helmets for children up to 10 years of age is liable to VAT at the zero rate in accordance with paragraph 10(1) of Schedule 2 of the Value-Added Tax Consolidation Act 2010. The supply of safety equipment for adults and children older than 10 years is liable to VAT at the standard rate of 21% as provided for in Section 46(1)(a) of the VAT Consolidation Act. The application of a reduced rate on safety equipment for adults and older children is prohibited by the EU VAT Directive, with which Irish VAT law must comply. In general, Member States must apply the standard VAT rate to all safety equipment. Under Article 110 of the VAT Directive, where a Member State applied a zero rate of VAT to any item on 1 January 1991, they could continue to apply the zero rate. It is under this provision that clothing and safety equipment for children is zero rated in Ireland. As the standard rate applied to safety equipment for adults and older children on 1 January 1991, it is not possible for Ireland to apply a VAT rate lower than the standard rate to these items. With regard to the VAT rate applying to safety equipment including bicycle helmets in the UK, the same VAT Directive provision (Article 110), allows the UK to zero rate safety equipment and bicycle helmets for adults as well as children. This is because the UK applied such a rate to safety equipment on 1 January 1991.