Denis Naughten (Roscommon-South Leitrim, Independent)
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211. To ask the Minister for Finance the reason for the difference in the value added tax registration threshold for the sale of services as against the sale of goods; if he will review this anomaly; and if he will make a statement on the matter. [40447/15]

Michael Noonan (Limerick City, Fine Gael)
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I am advised by the Revenue Commissioners that the annual turnover threshold for VAT registration depends on the nature of the business carried on. In general, there are two thresholds: the goods threshold, which is currently €75,000, and the services threshold, which is €37,500. These thresholds were increased to their current values in the Finance Act 2008.

Different VAT registration thresholds for the supply of goods and services are a feature of the EU VAT Directive and Irish VAT legislation and reflect the profound difference between the two supplies; in general, the value added in relation to the supply of goods will be much smaller relative to turnover compared with a supply of services.

Pearse Doherty (Donegal South West, Sinn Fein)
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212. To ask the Minister for Finance how child care is treated for the purposes of value added tax, including the purchase of equipment required for special needs purposes by a private family and by a child care centre. [40470/15]

Michael Noonan (Limerick City, Fine Gael)
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I have been advised by the Revenue Commissioners that childcare is exempt from VAT as it falls within the exempted activities outlined under paragraph 4 of Schedule 1 of the Value-Added Tax Consolidation Act 2010. The exemption applies to a wide range of commercial and community childcare services including crèche and Montessori centres, playschools and community childcare facilities.

The Deputy has not elaborated on what he terms equipment required for special needs purposes.  I would, however, point out that the zero rate of VAT applies to supplies of a range of medical equipment and appliances include invalid carriages (excluding mechanically propelled road vehicles), orthopedic appliances, deaf aids, walking frames and crutches.  In addition, the Value-Added Tax (Refund of Tax) (No. 15) Order, 1981, provides in certain circumstances for the refund of VAT on certain aids and appliances that are purchased for the exclusive use of a person with a disability of a type specified for the purposes of the Order.  I would point out that the goods to which the Order may apply must be used by a particular person.  This means that, in general, the Order does not provide relief to a childcare centre where the aids and appliances are for the benefit of the institution rather than being solely for the benefit of a particular person.