Jerry Buttimer (Cork South Central, Fine Gael)
Link to this: Individually | In context | Oireachtas source

44. To ask the Minister for Finance the reason insulin is subject to VAT; if he will exempt it from VAT; and if he will make a statement on the matter. [49763/13]

Michael Noonan (Limerick City, Fine Gael)
Link to this: Individually | In context | Oireachtas source

I am advised by the Revenue Commissioners that the supply of oral medicines is liable to VAT at the zero rate and that the supply of non-oral medicines is liable to VAT at the standard VAT rate at 23%. The supply of insulin solution for injection or insulin suspension for injection, which are not oral medicines, are therefore liable to VAT at the standard rate. The VAT rating of goods and services is constrained by the requirements of EU VAT law with which Irish VAT law must comply. 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.

Member States may apply a reduced VAT rate to those goods and services which are listed under Annex III of the VAT Directive, including pharmaceutical products of a kind normally used for health care and as treatment for medical purposes. Therefore, the application of a reduced rate of VAT, at 9% or 13.5%, is permissible under the VAT Directive.

Jerry Buttimer (Cork South Central, Fine Gael)
Link to this: Individually | In context | Oireachtas source

45. To ask the Minister for Finance the reason defibrillators are subject to VAT; if he will exempt them from VAT; and if he will make a statement on the matter. [49764/13]

Michael Noonan (Limerick City, Fine Gael)
Link to this: Individually | In context | Oireachtas source

The VAT rating of goods and services is subject to 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, currently 23%. There is no provision in the EU VAT Directive that would make it possible to exempt from VAT or apply a zero rate to the supply of such products.

Under the VAT (Refund of Tax) (No.15) Order, 1981 it is possible for individuals to obtain repayment of VAT expended on certain goods and appliances which assist persons with a disability to overcome that disability. In this context, a defibrillator purchased by or on behalf of an individual may qualify for a VAT refund. However, a defibrillator purchased for general use by a sports body or charity would not qualify for such a refund.