Martin Heydon (Kildare South, Fine Gael)
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70. To ask the Minister for Finance the options that are open to charitable organisations that are suffering significant VAT charges and are not in a position to recover this VAT due to their charitable status (details supplied); and if he will make a statement on the matter. [14755/17]

Michael Noonan (Limerick City, Fine Gael)
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I am advised by Revenue that the supply of goods and services are generally liable to VAT at the various rates specified in the VAT Consolidation Act, 2010. Under the EU VAT Directive there is no scope to exempt supplies on the basis of charitable status.

Generally, activities engaged in by charities are outside the scope of VAT and therefore they do not account for VAT on their supplies and accordingly have no entitlement to VAT deductibility on their inputs. There is, however, provision for refunds of VAT to charities in certain circumstances, including VAT on the purchase of new medical instruments and appliances or the purchase of medical research equipment which are funded by voluntary donations. Please see attached link for further information:  .

In addition, the Deputy will be aware that my officials have been engaged with the Irish Charities Tax Reform Group in recent years to examine how charities might be compensated for VAT incurred on their inputs. The report of this group is available on my Department's website. In Budget 2017 I asked my officials to re-engage with that group to review the options in this regard. This work is ongoing.