Michael Healy-Rae (Kerry South, Independent)
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152. To ask the Minister for Finance to set out the position regarding VAT payments in respect of a property (details supplied); and if he will make a statement on the matter. [25411/14]

Michael Noonan (Limerick City, Fine Gael)
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I am advised by the Revenue Commissioners that it is not possible to provide a definitive answer based on the information provided by the Deputy.  I would point out that the letting of immovable goods is exempt from VAT under the EU VAT Directive with which Irish VAT law must comply.  However, prior to April 2007 a person who acquired immovable  goods for residential lettings could waive their exemption, that is register for VAT, recover the input VAT on the acquisition or development of those immovable goods on condition that the rental income be subject to VAT at the standard rate, currently 23%.  A person in such a situation can now cancel their VAT registration in respect of all rental income, but this may result in a tax liability if the input VAT recovered on acquisition or development of all residential immovable goods is greater than the output VAT on the rental income.  I would further point out that the supply of immovable goods that have not been developed within the last 20 years is exempt from VAT except where the supply is a first supply of those immovable goods following completion of their development.