Éamon Ó Cuív (Galway West, Fianna Fail)
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Question 56: To ask the Minister for Finance if his attention has been drawn to the fact that the telecom companies are charging 23% VAT on charity related SMS text messages even though these are exempted from VAT by the Revenue; and if he will make a statement on the matter. [41226/11]

Michael Noonan (Limerick City, Fine Gael)
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I am advised by the Revenue Commissioners that charitable donations made via SMS text message, excluding any fees charged by the telecommunications provider or other service provider, are outside the scope of Irish VAT. Any fees charged by the telecommunications service providers in connection with the facilitation of donations are liable to VAT at the standard rate of 23%. Telecommunications providers have recently advised Revenue that their systems do not currently have the technical ability to distinguish between the telecommunications service which is liable to VAT at the standard rate of 23% and the charitable donation which is outside the scope of VAT. Therefore, the telecommunications service providers have to date accounted for VAT at the standard rate on the full amount including the donation made via SMS text message. However, it is Revenue's understanding that the telecommunications providers are working towards resolving this issue in the near future and are putting in place measures to ensure that the appropriate contribution from the charitable donations made via SMS text message is passed on VAT-free to the charities or to third party service providers acting on behalf of the charities where this is the case.

Revenue also understands that charities are working with the telecommunications providers with a view to resolving this matter.