Eoghan Murphy (Dublin South East, Fine Gael)
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Question 75: To ask the Minister for Finance further to Parliamentary Question No. 47 of 9 February 2012, if he will consider the possibility of introducing a tax-free weekend in either August or September of each year to be applied solely to personal computers and related products and to do so by way of reducing VAT to 1% on such products in order to assist those students in purchasing the necessary equipment for the coming academic year. [10127/12]

Michael Noonan (Limerick City, Fine Gael)
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As outlined in my previous response to the Deputy, VAT is governed by the EU VAT Directive, with which Irish VAT law must comply. The VAT Directive provides that the supply of goods and services by taxable persons is subject to VAT, unless specifically exempted under its terms. The terms of the Directive do not provide for variations in VAT treatment for specific periods and as such it is not possible to provide for a scheme of the kind proposed.

Furthermore, it is not possible to apply a VAT rate of 1% to any good or service as the VAT Directive provides that a minimum reduced rate of 5% apply and only in relation to set goods and services listed in Annex III of the Directive. Personal computers and related products are not listed in Annex III and as such the standard VAT rate of 23% must apply to them.