Ciarán Lynch (Cork South Central, Labour)
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To ask the Minister for Finance the number of defibrillators sold each year since 2009 and to date in 2012; the rate of VAT and the amount accruing each year on these sales; the number of submissions requesting reduction or removal of the VAT charged on defibrillators received by him; and if he will make a statement on the matter. [53190/12]

Michael Noonan (Limerick City, Fine Gael)
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I am informed by the Revenue Commissioners that as the information furnished on VAT returns does not require the yield from particular commodities to be identified, the quantity and amount of VAT accruing each year on the sales of defibrillators cannot be identified. The VAT rating of goods and services is constrained by the requirements of EU VAT law with which Irish VAT law must comply. Defibrillators, other than implantable defibrillators, are liable to VAT at the standard rate of 23%. Parts or accessories are also liable to VAT at the standard rate.

There is no provision in VAT law that would make it possible to apply a reduced rate or zero rate to the supply of such products. Under the EU VAT Directive, Member States may retain the zero rate on goods and services which were in place on 1 January 1991, but cannot extend the zero rate to new goods and services. In addition, Member States may only apply a reduced VAT rate to those goods and services which are listed under Annex III of the VAT Directive. While Annex III does include the supply of medical equipment for the exclusive personal use of a disabled person, it does not include defibrillators for general use. In this regard, a reduced rate cannot be applied to the supply of defibrillators. Therefore the only rate of VAT that can apply to the supply of defibrillators is the standard VAT rate of 23%.

It is not possible to provide the number of submissions received which relate to VAT on defibrillators, as many of the submissions and representations received relate to a variety of issues.

Michael Healy-Rae (Kerry South, Independent)
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To ask the Minister for Finance his views on whether there should be a reduction in the lower 13.5% VAT rate for servicing and repairs and a tax rate off for service/repair work undertaken in tax compliant businesses; and if he will make a statement on the matter. [53197/12]

Michael Noonan (Limerick City, Fine Gael)
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VAT is charged on the supply of goods and services and the rate applying is subject to the requirements of EU VAT law with which Irish VAT law must comply. The repair and maintenance of movable goods, such as motor vehicles, is subject to VAT at the 13.5% rate and it is not possible to reduce the VAT rate applying to such repairs servicing below 12%. This is because such repairs, including many of the goods and services to which Ireland applies a reduced rate of VAT, are based on an EU derogation under Article 118 of the EU VAT Directive, which provides that as we applied a reduced rate to these items on 1 January 1991, we are entitled to continue to apply that reduced rate to those items, provided the rate is no less than 12%. Furthermore, while is it possible to reduce the VAT rate on repairs and servicing to 12%, this could only be done through the application of a 12% VAT rate to all goods and services that currently apply at the 13.5%, and such a move would be very costly to the Exchequer. However, it must be noted that in the majority of EU Member States, where the derogation under Article 118 does not apply, repair and servicing is subject to a higher VAT rate. With regard to removing VAT on the supply of service and repair work undertaken by tax compliant businesses, the EU VAT Directive does not allow for such a distinction between taxpayers, and in any case, it is not possible to remove the VAT on such supplies. Furthermore, the enforcement of tax law through tax reductions is not an advisable policy, especially in the current economic climate. The black economy in the construction sector is dealt with, and should continue to be dealt with, through ongoing enforcement procedures by the Revenue Commissioners.