Finian McGrath (Dublin North Central, Independent)
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162. To ask the Minister for Finance the position regarding VAT in respect of dog grooming (details supplied); and if he will make a statement on the matter. [6610/14]

Michael Noonan (Limerick City, Fine Gael)
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The supply of dog grooming services is liable to VAT at the standard rate, currently 23 per cent.  Paragraph 21(3) of Schedule 3 to the Value-Added Tax Consolidated Act 2010 provides that the supply of services by a veterinary surgeon in the course of their profession is liable at the reduced rate of VAT, currently 13.5%.  Where a veterinary surgeon carries out a dog grooming service as part of a veterinary procedure, such as treating an illness or disease, the dog grooming is considered part of the veterinary procedure and the entire procedure is liable to VAT at the reduced rate.  However, where a veterinary surgeon provides a dog grooming services as a supply that is distinct from a veterinary procedure the service is liable to VAT at the 23% rate.

 The VAT rating of goods and services is subject to the requirements of EU VAT law with which Irish VAT law must comply.  While the EU VAT Directive provides for the possibility of applying a reduced of VAT to the supply of certain goods and services, the supply of dog grooming services is not one that could have a reduced rate applied to it.