Written answers

Friday, 7 September 2018

Department of Finance

VAT Rate Reductions

Photo of Michael McGrathMichael McGrath (Cork South Central, Fianna Fail)
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179. To ask the Minister for Finance the estimated full-year cost decreasing the standard rate VAT to 20%; if this is possible under European rules; and if he will make a statement on the matter. [36822/18]

Photo of Paschal DonohoePaschal Donohoe (Dublin Central, Fine Gael)
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Irish VAT law must comply with the EU VAT Directive, which directs that Member States must apply a standard VAT rate of 15% or more.  Ireland's standard VAT rate is currently 23% and it is possible under EU VAT law to reduce the rate to 20%.

Reducing the standard rate from 23% to 20% would cost the Exchequer almost €1.4 billion. Further statistics in relation to the cost or yield from changing VAT rates is available in the Pre-Budget 2019 Revenue Commissioners Ready Reckoner, which is available at the following link: .

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