Michael Healy-Rae (Kerry South, Independent)
Link to this: Individually | In context | Oireachtas source

179. To ask the Minister for Finance if he will explain the anomaly whereby persons buying feed for horses do not pay value added tax, while persons in the greyhound industry are obliged to pay value added tax on feed purchased for their greyhounds; and if he will make a statement on the matter. [14807/15]

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

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, 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. 

Animal foodstuffs can only benefit from the zero rate in Ireland in accordance with the derogation provided by Article 110 of the VAT Directive which permits the retention of the zero rate on products which were liable to VAT at the zero rate on 1 January 1991. Since the 1970s the zero rate of VAT has applied to animal feeding stuff excluding feeding stuff which is packaged, sold or otherwise designated for the use of dogs, cats, cage birds or domestic pets.  Therefore, Ireland was permitted under Article 110 to retain the zero rate for such animal feeding stuff. Greyhound feeding stuff was liable to VAT at the standard rate since the introduction of VAT. The Finance Act 1995 introduced a reduced rate, currently 13.5%, for greyhound feeding stuff that is packaged, advertised or held out for sale solely as greyhound feeding stuff, and that is supplied in units of not less than 10 kilograms. The reduced rate is the lowest VAT rate on greyhound feeding stuff that is permitted by the EU VAT Directive.