Barry Cowen (Offaly, Fianna Fail)
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155. To ask the Minister for Finance the approximate cost of reducing VAT on professional fees in the construction sector. [33986/17]

Barry Cowen (Offaly, Fianna Fail)
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156. To ask the Minister for Finance the approximate cost of reducing VAT on professional fees on residential construction only and not on commercial or industrial construction. [33987/17]

Paschal Donohoe (Dublin Central, Fine Gael)
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I propose to take Questions Nos. 155 and 156 together.

I am advised by the Revenue commissioners that the information provided to Revenue on tax returns does not require traders to identify the yield generated from specific products or types of activities. Therefore there is no data available to Revenue on which to base an estimate the effect of changing the VAT rate on professional fees in the construction sector.

The EU VAT Directive (Council Directive 2006/112/EC), with which Irish VAT law must comply, provides a list of those supplies of goods and services to which VAT rates lower than the standard rate may be applied. As professional fees on construction are not included on this list, Member States are precluded from reducing the VAT rate on such services below the standard VAT rate.

It should also be noted that where VAT is chargeable on construction services supplied or on the sale of developed property, including residential property, the supplier can reclaim VAT on any professional fees incurred in respect of those activities so that such VAT would not be a cost to the supplier.