Brendan Griffin (Kerry South, Fine Gael)
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To ask the Minister for Finance the reason the pet farm part of an educational facility (details supplied) in County Kerry is not exempted from VAT; and if he will make a statement on the matter. [41957/12]

Michael Noonan (Limerick City, Fine Gael)
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Irish VAT law is subject to the provisions of the EU VAT Directive with which it must comply. Up to 31 December 2011 admissions to historic houses and gardens, and open farms were treated for VAT purposes as lettings and regarded as exempt from VAT.

Having regard to certain decisions of the European Court of Justice, where a letting was defined for VAT purposes, it was decided that such admissions could no longer be treated as exempt lettings. As there are no other provisions in the VAT Directive that would allow an exemption from VAT on admissions to visitor farms, such admission became subject to VAT from 1 January 2012.

Schedule 1 to the VAT Consolidation Act 2010 provides an exemption for the provision of children’s or young people’s education by educational establishments recognised by the State. This exemption does not extend to admissions to visitor farms for educational school tours.

While admissions to visitor farms became liable to VAT from 1 January, provision was made in the Finance Act 2012 to ensure that such admissions apply at the 9% reduced rate of VAT and not the standard 23% VAT rate.