Michael Healy-Rae (Kerry South, Independent)
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191. To ask the Minister for Finance the reason VAT could not be waived in respect of a service (details supplied) in County Kerry; and if he will make a statement on the matter. [39503/13]

Michael Noonan (Limerick City, Fine Gael)
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The application of VAT is determined by the EU VAT Directive, with which Irish VAT law must comply. In this context, the supply of a bus, as a new means of transport, is liable to VAT at the 23% VAT rate. The VAT charged on a new means of transport can only be claimed by persons who are registered for VAT and in the business of selling vehicles. All other businesses and individuals cannot claim back the VAT charged on a new vehicle. There are a number of Value-Added Tax Refund Orders that provide for refunds of VAT in circumstances, such as, where the VAT is incurred on aids or appliances for persons with a specified degree of disablement or on qualifying medical equipment purchased through voluntary donations. However, refunds for VAT on new means of transport are specifically excluded from such refund orders.