Eamon Ryan (Dublin Bay South, Green Party)
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112. To ask the Minister for Finance if he will consider reducing the VAT rate charged on dog grooming services from 23% to 13.5%, in view of the fact the present situation creates inequalities, for example, if a grooming service is offered at a veterinary clinic, the 13.5% rate applies; and if he will make a statement on the matter. [17289/17]

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. I am advised by The Revenue Commission that the supply of dog grooming services is liable to VAT at the standard rate of 23%. Under the EU VAT Directive, there is no provision to allow the reduced rate to be applied to the supply of dog grooming services.

The EU VAT Directive also allows for the continuation of a 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. Dog grooming services did not apply a zero or reduced VAT rate on 1 January 1991 and as such it is not possible to apply a reduced or zero VAT rate to the service now.

As Ireland applied a reduced VAT rate to the supply of services by a veterinary surgeon on and from 1 January 1991 we can continue to apply the 13.5% rate to these services.  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.