Séamus Healy (Tipperary, Workers and Unemployed Action Group)
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129. To ask the Minister for Finance his plans to exempt rescue and safety equipment purchased by voluntary organisations, such as Carrick on Suir river rescue, from the payment of VAT; and if he will make a statement on the matter. [33796/16]

Michael Noonan (Limerick City, Fine Gael)
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The VAT rating of goods and services is subject to the requirements of EU VAT law, with which Irish VAT law must comply. EU VAT exemptions are set out in Articles 132 and 135 of the VAT Directive (Council Directive 2006/112/EC) and do not cater for the supply of rescue and safety equipment. Therefore, it is not possible to exempt the equipment mentioned by the Deputy.

In 2013, I extended the VAT (Refund of Tax) (Rescue boats and related equipment) Order S.I. 249 of 2013 to enable VAT to be repaid in respect of  small rescue craft, ancillary equipment and special boat buildings to qualifying inland water rescue groups who provide a sufficient standard of inland waterways rescue. Previously, VAT refunds were allowable only in respect of qualifying sea rescue organisations and the Irish Water Safety Association. In order to be entitled to a refund of VAT, it is incumbent on the claimant to demonstrate that it fulfils the conditions laid down in the refund order.

Furthermore, the Programme for Partnership Government recognises the difficulties faced by community groups and charities in relation to VAT rates on certain products and commits to raising the issue 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 Action Plan's proposal on rates may offer Member States more flexibility in the future in determining VAT rates applicable to goods and services. However, the Deputy will be aware that any proposed changes to the current EU VAT Directive would require unanimous agreement from all Member States.