James Bannon (Longford-Westmeath, Fine Gael)
Link to this: Individually | In context | Oireachtas source

169. To ask the Minister for Finance if herbal teas, vitamins and health supplements will continue to avail of the special VAT rate; and if he will make a statement on the matter. [30851/14]

Eoghan Murphy (Dublin South East, Fine Gael)
Link to this: Individually | In context | Oireachtas source

173. To ask the Minister for Finance if he is considering a VAT rate of 23% on health products; and if this will include food or drink products that are viewed as natural remedies to certain conditions, or are taken as alternatives to other similar foods because of dietary requirements. [30977/14]

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

I propose to take Questions Nos. 169 and 173 together.

VAT rates are governed by EU VAT law, with which Irish VAT law must comply. The EU VAT Directive generally provides that supplies of goods and services are chargeable to VAT at the standard rate but that lower rates are permitted in very limited circumstances.  Food products can only benefit from the zero rating in accordance with Article 110 of the VAT Directive which permits the retention of the zero rate where the products were liable to VAT at the zero rate on and from 1 January 1991.

A range of food supplements and vitamins that encourage the maintenance of health, through the sustenance derived from a normal, healthy diet, benefit from the zero rate.  However, a food supplement taken for the purposes of muscle growth or body mass increase, or for the purposes of weight reduction or bodily sculpture, cannot benefit from the zero rate.  I would draw the Deputies' attention to Revenue eBrief 70/2011 which contains additional detail in relation to the VAT rates of vitamins and food supplements. 

I would further draw to your attention that paragraph 8 of Schedule 2 of the Value-Added Tax Consolidation Act 2010 provides that the supply of tea and preparations derived from the crushed leaves of the tea plant when supplied in non-drinkable form is liable to VAT at the zero rate.  The VAT applicable to herbal teas derived from plants other than the tea plant has been raised with me by the industry and the matter is subject to ongoing analysis.