Seán Kyne (Galway West, Fine Gael)
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34. To ask the Minister for Finance the reason VAT is charged on personal safety equipment such as helmets here; if this is a requirement of EU VAT law and, if so, if his attention has been drawn to the fact that such safety products are exempt from VAT in the UK; and if he will make a statement on the matter. [41745/14]

Michael Noonan (Limerick City, Fine Gael)
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The VAT rating of goods and services is subject to the requirements of EU VAT law with which Irish VAT law must comply.  The VAT Directive does not make specific provision for a reduced or zero rate, or an exemption from VAT, to apply to safety equipment, including helmets.  As such, they are subject to the standard VAT rate, which is currently 23%. 

However, for historic reasons the zero rate of VAT applies to safety clothing, helmets and visibility clothing, for children up to 10 years of age, while the supply of such clothing for adults and children older than 10 years is liable to VAT at the 23% rate.  As Ireland applied the zero rate to clothing and protective clothing for children up to 10 years of age on 1 January 1991, we are entitled to retain that zero rated application.  However, as the standard VAT rate applied to safety equipment and safety clothing for adults and older children on 1 January 1991, it is not possible to apply a reduced or zero rate to them, nor to exempt them from VAT.

In the case of the UK, they had a zero rate on safety products before 1 January 1991 so were able to continue exempting these products from VAT.