Pearse Doherty (Donegal South West, Sinn Fein)
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55. To ask the Minister for Finance if his attention has been drawn to the UK Chancellor who has announced measures to provide a VAT exemption for mountain rescue teams; his plans to introduce a similar measure in this State; and if he will make a statement on the matter. [48661/14]

Michael Noonan (Limerick City, Fine Gael)
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I am advised by the Revenue Commissioners that the VAT rating of goods and services is subject to the requirements of EU VAT law, with which Irish VAT law must comply. While we can maintain the zero rating on those goods and services which were zero-rated before 1 January 1991, the goods and services referred to by the Deputy do not fall within this category. Similarly, Member States may only apply a reduced VAT rate to those goods and services set out in Annex III of the EU VAT Directive (2006/112/EC). Safety equipment is not included in this annexe. Therefore, it is not possible to apply a zero or reduced VAT rate to these goods and services.

I note the statement from the UK Chancellor was to the effect that from April 2015 search and rescue charities will be able to have supplies of certain equipment zero rated by suppliers:  this extends the existing UK treatment, which has existed since before 1991, whereby suppliers can zero rate supplies of specified goods and services to charities in very specific circumstances. In Ireland, there are no provisions to allow a charity engaged in search and rescue operations to recover VAT on its inputs and there is no scope within the VAT Directive to introduce a zero rating scheme where none existed at 1 January 1991.