Eric Byrne (Dublin South Central, Labour)
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69. To ask the Minister for Finance his views on correspondence (details supplied) regarding VAT; and if he will make a statement on the matter. [45581/14]

Michael Noonan (Limerick City, Fine Gael)
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I am advised by the Revenue Commissioners that the EU VAT Directive (Council Directive 2006/112/EC) generally provides that supplies of goods and services be 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 for "clearly defined social reasons" where the products were liable to VAT at the zero rate on 1 January 1991. 

As set out in eBrief 70/2011, 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.  The key consideration is whether the food supplement is one that forms part of a person's normal diet for the purposes of sustenance as opposed to enhancing a person's diet with a view to achieving a particular aim.  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 since such products are not food.  The only two "food supplements" specified in the correspondence, probiotics and glucosamine, could be a zero rated food supplement or one liable at the standard rate but there is insufficient information provided to make such a determination.  I would suggest that the Deputy provide details of the "food supplements" to which he refers to the Revenue Commissioners who will advise on their correct VAT treatment as appropriate. I would also point out that food for the purposes of interpretation of the provisions of the VAT Consolidation Act 2010 has the ordinary and everyday meaning of food; alternative definitions in an unrelated EU Directive are not relevant.