Áine Collins (Cork North West, Fine Gael)
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236. To ask the Minister for Finance if there is a value added tax exemption for charities who purchase medical equipment for children with cystic fibrosis. [6054/15]

Michael Noonan (Limerick City, Fine Gael)
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I am advised by the Revenue Commissioners that VAT is a tax on consumption and is applied to supplies being made by a person and not to supplies received by them.  In this context, it is not possible under EU VAT law, with which Irish VAT law must comply, to introduce VAT exemption based on services received, nor to introduce an exemption based on the recipient of a service.

Non-profit groups engaged in non-commercial activity are exempt from VAT under the EU VAT Directive.  This means that they do not register for VAT and cannot recover VAT incurred on goods and services that they purchase.  This non-entitlement to VAT deductibility is a general feature of VAT exemption.

There is no provision in either European law or Irish VAT law to allow a zero-rating or exemption for supplies of this nature.  However, there is a specific VAT Refund Order (SI 58 of 1992) that provides VAT incurred on the purchase or importation of new medical instruments and appliances (excluding means of transport), which is purchased through voluntary donations, may be refunded to hospitals or donors, as appropriate, subject to conditions.  Further information on the Refund Order, its conditions and the refund claim form VAT 72 is available on the Revenue website www.revenue.ie.