James Bannon (Longford-Westmeath, Fine Gael)
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To ask the Minister for Finance if his attention has been drawn to the fact that VAT legislation is preventing tenant purchase funding from being raised and if he will outline his plans to bring forward legislation to deal with this anomaly; and if he will make a statement on the matter. [1641/13]

Michael Noonan (Limerick City, Fine Gael)
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I assume that the Deputy’s question refers to the ability of local authority tenants to access funding to cover the VAT-inclusive cost of buying a local authority house where the transaction is liable to VAT. VAT is a European Community wide-tax governed by Council Directive 2006/112/EC and all Member States must ensure their domestic VAT legislation complies with this Directive. VAT legislation in Ireland in relation to property disposals is in compliance with the VAT Directive and applies equally to local authorities and any other person dealing in property. It is not possible to disregard charging VAT on a residential property because the purchase forms part of a local authority scheme.