Michael McGrath (Cork South Central, Fianna Fail)
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64. To ask the Minister for Finance the Revenue Commissioners' view of the VAT classification of the provision of gymnastics lessons; and if he will make a statement on the matter. [32434/16]

Michael Noonan (Limerick City, Fine Gael)
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The VAT rating of goods and services is subject to EU VAT law, primarily Council Directive 2006/112/EC, with which Irish VAT law must comply. The Directive generally provides that supplies of goods and services be chargeable to VAT at the standard rate but that lower rates are permitted in very limited circumstances. The Directive provides that reduced rates may apply to supplies of goods and services set out in Annex III to the Directive. The provision of gymnastic lessons is not specified in the Annex therefore the provision of gymnastic lessons that are purely recreational in nature are liable to VAT at the standard rate, currently 23%. 

However, the provision of education is VAT exempt and gymnastic lessons for children or young people that follow school curriculum may benefit from this exemption. Gymnastic lessons that are provided in the manner of vocational training or retraining that may lead to a recognised qualification as a gymnastics instructor may also benefit from this exemption.