Charlie McConalogue (Donegal, Fianna Fail)
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20. To ask the Minister for Finance the reason it is possible for bus companies to claim the value added tax back on new coaches that they purchase but not possible to claim the value added tax back when they purchase low floored service buses with disability access; his plans to extend the value added tax reclamation to service buses; and if he will make a statement on the matter. [7848/16]

Michael Noonan (Limerick City, Fine Gael)
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I am advised by the Revenue Commissioners that Irish VAT legislation, which is in compliance with the EU VAT Directive, provides that the transport of passengers and their accompanying baggage is exempt from VAT under paragraph 14(3) of Schedule 1 to the VAT Consolidation Act 2010.  In this respect, services provided by the coach and bus sector are exempt from VAT.  This means that a person who provides a bus or coach service does not register for VAT and does not charge VAT on the supply of their services. Persons who are exempt from VAT cannot recover VAT incurred on goods and services incurred in relation to their business, such as bus purchases and fuel, tyre and garage expenses, used for the purposes of the person's coach and bus service.

Section 103 of the Value-Added Tax Act 2010 provides that the Minister for Finance may by order provide for a refund of VAT in certain circumstances.  The VAT (Refund of Tax) (Touring Coaches) Order 2012 [SI 266/2012] provides for the refund to VAT-exempt coach operators, subject to certain conditions, of VAT paid on touring coaches of a certain age and dimension.  The conditions include that the coach operator is engaged in the business of the carriage for reward of tourists by road under contracts for group transport and that the vehicle meets the criteria set out for a qualifying vehicle as defined in the Order.  Where a bus operator and/or vehicle do not meet the criteria in the Refund Order there is no entitlement to claim back VAT incurred on the purchase of buses or coaches.  Further details are available on the Revenue website at the following link .

I should also advise you that under the Disabled Drivers and Passengers (Tax Concessions) Scheme, organisations are entitled to claim a repayment of Vehicle Registration Tax (VRT) and Value Added Tax (VAT) paid on specially constructed or adapted vehicles, which are used for the transport of Persons with Disabilities.  In order to qualify an organisation must be a charitable organisation within the meaning of the Charities Act 2009 and be entered in the register of charitable organisations pursuant to Part 3 of that Act.  It must also be chiefly engaged in the care and transport of severely and permanently disabled persons.  Full details of this scheme and how to apply are available on the Revenue website: .