Róisín Shortall (Dublin North West, Social Democrats)
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205. To ask the Minister for Finance the current VAT rate charged for the repair of goods, for example, white goods, bicycles and so on; and his estimate of the cost of reducing the VAT rate charged to the next lowest VAT bracket. [27199/16]

Michael Noonan (Limerick City, Fine Gael)
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The VAT rating of goods and services are subject to the requirements of EU VAT law with which Irish VAT law must comply. The VAT Directive provides that Member States may apply either one or two reduced rates to certain goods and services listed in Annex III of the Directive.  In addition, the Directive allows for historic VAT treatment to be maintained under certain conditions on certain goods and services not provided for in Annex III.

Ireland currently operates two lower rates of VAT 13.5% and 9% as permitted by the Directive. The VAT Rate for the repair of goods is the reduced rate 13.5% and comes under the historic VAT treatment which is subject to the restriction that it can not be reduced below 12%.  Therefore, it cannot be moved to the next lowest VAT bracket of 9%.

The carrying out of minor repairs to bicycles, shoes or leather goods, clothing or household linen are however specifically listed in Annex III of the Directive and therefore can be reduced to 9%.

I am informed by Revenue that it is not possible to estimate the cost of reducing the VAT rate on these specific services. This is due to the fact that VAT returns submitted to Revenue do not identify specific transactions or activities.