James Browne (Wexford, Fianna Fail)
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52. To ask the Minister for Finance if value-added tax should be removed from automated external defibrillator machines; how he intends to remove it; and if he will make a statement on the matter. [10981/16]

Michael Noonan (Limerick City, Fine Gael)
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The VAT rating of goods and services is constrained by the requirements of EU VAT law with which Irish VAT law must comply. Defibrillators, other than implantable defibrillators, are liable to VAT at the standard rate, currently 23%. Parts or accessories and training are also liable to VAT at the standard rate. 

There is no provision in VAT law that would make it possible to apply a reduced rate or zero rate to the supply of such products. Under the EU VAT Directive, Member States may retain the zero rate on goods and services which were in place on 1 January 1991, but cannot extend the zero rate to new goods and services. In addition, Member States may only apply a reduced VAT rate to those goods and services which are listed under Annex III of the VAT Directive. While Annex III does include the supply of medical equipment for the exclusive personal use of a disabled person, it does not include defibrillators for general use. In this regard, a reduced rate cannot be applied to the supply of defibrillators. Therefore the only rate that can apply to the supply of defibrillators and their accessories is the standard VAT rate of 23%.

The Programme for Partnership Government commits to raising the issue of VAT rates applying to certain products such as defibrillators at EU level. The European Commission's Action Plan on VAT was adopted on 7th April 2016 and contains a proposal to look at VAT rate policy across the EU in 2017. The rates proposal may offer Member States more flexibility in the future in determining VAT rates applicable to goods and services, and this forum will provide an opportunity to discuss VAT applicable to defibrillators. However, the Deputy will be aware that any proposed changes to the current EU VAT Directive would require unanimous agreement from all Member States.