Brendan Griffin (Kerry South, Fine Gael)
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Question 16: To ask the Minister for Finance his views on the VAT rate on handcrafts (details supplied); if he will consider the VAT in advance of Budget 2012; and if he will make a statement on the matter. [32449/11]

Michael Noonan (Limerick City, Fine Gael)
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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 only apply the reduced VAT rate to those goods and services which are listed under Annex III of the VAT Directive. I understand that the major sectors within the Irish craft industry are pottery, glass, jewellery, textiles and furniture. Annex III does not provide for a reduced rate of VAT to be applied to these goods, which are consequentially subject to the standard VAT rate of 21%.