Written answers
Tuesday, 16 July 2013
Department of Finance
VAT Rates Reductions
Brendan Griffin (Kerry South, Fine Gael)
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300. To ask the Minister for Finance if he will reduce the rate of VAT payable by ice-cream parlours to 9% in recognition of the labour intensive nature of the business and the heavy dependency that such businesses have on tourism; and if he will make a statement on the matter. [35483/13]
Michael Noonan (Limerick City, Fine Gael)
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I am advised by the Revenue Commissioners that the standard rate of VAT, currently 23%, applies to the sale of ice-cream, as it does to most confectionery and sugary foods. In this respect, ice-cream parlours selling ice-cream to customers must charge the 23% rate on the supply of ice-cream. A reduction in the VAT rate on ice-cream would lead to pressure to apply a similar reduction to the wider confectionary and sugary foods area which would be costly to the Exchequer. I therefore have no plans to change the VAT treatment of ice-cream sold by ice-cream parlours.
I would point out that where ice-cream is provided as part of a meal by a caterer, such as a restaurant, the meal, including the ice-cream element, is liable to VAT at the 9% reduced VAT rate.
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