Joanna Tuffy (Dublin Mid West, Labour)
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77. To ask the Minister for Finance his views on removing value added tax from incontinence pads for elderly persons and others who use these products; if he is aware that following petitioning by the British public, the United Kingdom Government removed value added tax from incontinence products (details supplied); and if he will make a statement on the matter. [24333/15]

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.  The supply of incontinence pads is liable to VAT at the standard rate, currently 23%.  EU VAT exemptions do not allow for exempting the supply of incontinence pads from VAT and a zero rate of VAT cannot be applied since incontinence pads were not subject to the zero rate at 1 January 1991, a requirement of the EU VAT Directive. 

The position in the UK to which the Deputy refers is that where an elderly person provides a declaration to the supplier of incontinence pads that they have a disabling condition (as set out in the UK VAT Notice 701/7) that requires the use of the pads, then the supplier may provide the products to that customer at the zero rate.  In all other circumstances the supply of incontinences pads is the UK is subject to VAT. 

In Ireland, purchases of incontinence pads for disabled persons may also benefit from relief from VAT.  Value Added Tax (Refund of Tax) (No 15) Order 1981 provides for the refund of VAT incurred on qualifying goods for the exclusive use of disabled persons.  The order specifies the degree of disability and defines the qualifying goods as goods which are aids or appliances, including parts and accessories, specially constructed or adapted for use by a disabled person.  I understand that VAT refunds under the Order have been made in the past for incontinence pads.