Brendan Griffin (Kerry South, Fine Gael)
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83. To ask the Minister for Finance if he will extend the 9% VAT rate to tour guides in the private sector to allow them compete with Bus Éireann tour guides who enjoy this rate; and if he will make a statement on the matter. [47940/13]

Michael Noonan (Limerick City, Fine Gael)
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I am advised by the Revenue Commissioners that it is precluded from commenting on, or disclosing details about, a named taxpayer. The VAT rating of goods and services is subject to the requirements of EU VAT law with which Irish VAT law must comply. Primarily, it must be in agreement with the EU VAT Directive 2006/112/EC. Tour guide services which consist of the provision of information on cultural, historical and contemporary heritage to tourists at places of interest are currently liable to VAT at the rate of 13.5%, in accordance with the Article 118 of the VAT Directive. It is not possible to apply a rate of 9% to tour guide services as Article 118 of the Directive provides that only a rate of 12% or higher may apply to such services.

The transport of passengers including tourists and their accompanying baggage qualify for VAT exemption under paragraph 14(3) of Schedule 1 to the VAT Consolidation Act 2010 and Article 371 of the VAT Directive. In certain circumstances, tour guide services may be ancillary to the transport of passengers and in other circumstances they may be distinct supplies of transport and tour guide services. The circumstances of each case would require examination to determine the correct VAT treatment.