Written answers

Friday, 16 September 2016

Department of Finance

VAT Rate Application

Photo of Michael McGrathMichael McGrath (Cork South Central, Fianna Fail)
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213. To ask the Minister for Finance the reason the standard rate of VAT applies to dog grooming services; if this matter is under review; and if he will make a statement on the matter. [24607/16]

Photo of Michael NoonanMichael Noonan (Limerick City, Fine Gael)
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The supply of dog grooming services is liable to VAT at the standard rate, currently 23%. The VAT rating of goods and services is subject to the requirements of EU VAT law with which Irish VAT law must comply.  The EU VAT Directive lists goods and services to which Member States may apply a reduced VAT rate in Annex III. As Annex III does not list dog grooming it is not possible under that provision to apply a reduced VAT rate to dog grooming services.

Furthermore, the EU VAT Directive also allows for the continuation of historic VAT rating. Where a Member State applied a zero or reduced VAT rate to a good or service on and from 1 January 1991, they are entitled to retain that historic VAT treatment. However, dog grooming services did not apply at a zero or reduced VAT rate on 1 January and as such it is not possible to apply a reduced or zero VAT rate to the service now.

This historic reduced VAT rate treatment does apply, however, to the supply of services by a veterinary surgeon, which is liable to VAT at the 13.5% rate because Ireland applied a reduced VAT rate to those services on 1 January 1991.  In this context, where a veterinary surgeon carries out a dog grooming service as part of a veterinary procedure, such as treating an illness or disease, the dog grooming is considered part of the veterinary procedure and the entire procedure is liable to VAT at the 13.5% rate. However, where a veterinary surgeon provides a dog grooming services as a supply that is distinct from a veterinary procedure the service is liable to VAT at the 23% rate.

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