Finian McGrath (Dublin North Central, Independent)
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350. To ask the Minister for Finance his plans to reduce the value added tax on children’s school shoes in order to assist parents with the steep school expenses that they experience at the beginning of the academic year; and if he would support this matter. [31492/15]

Michael Noonan (Limerick City, Fine Gael)
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As you are aware, Ireland applies the zero rate of VAT to children's clothing and shoes under defined circumstances. The VAT rating of goods and services is subject to the requirements of EU VAT law with which Irish VAT law must comply. In this regard, the rate of VAT that applies to a particular good or service is determined by the nature of the good or service, and not by the status of the customer. Children's clothing and footwear are subject to the zero rate for children up to 11 years. Section 46(1)(b) Schedule: 2 Paragraph: 10(1) of the Value-Added Tax Consolidation Act 2010, clarifies the zero rate of VAT applied to children's clothes. The zero rating applies according to the following criteria:

Clothing described, labelled, marked or marketed as being for children under 11 years of age up to & including chest size 32; waist size 26; height 152 cm or other equivalent sizes. Children's footwear up to and including size 5½ (38 continental or equivalent).

Under the EU VAT Directive, Member States may retain the zero rates on goods and services which were in place on 1 January 1991, but cannot extend the zero rate to new goods and services. As school uniforms for people over 11 years of age and children's footwear above size 5½ were not subject to the zero rate on 1 January 1991 it is not possible to apply the zero rate to them now.

In addition, Member States may apply a reduced VAT rate to those goods and services which are listed under Annex III of the EU VAT Directive. As clothes and shoes are not listed under this Annex the reduced rate cannot be applied to the supply of school uniforms or shoes. Therefore the only rate of VAT that can apply to the supply of school uniforms for children over 11 years of age or children's footwear above size 5½ (38 continental or equivalent) is the standard VAT rate of 23%.