James Browne (Wexford, Fianna Fail)
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159. To ask the Minister for Finance his plans to introduce VAT on food supplements; and if he will make a statement on the matter. [42124/18]

Michael McGrath (Cork South Central, Fianna Fail)
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165. To ask the Minister for Finance if he will address a matter raised in correspondence (details supplied) relating to the VAT treatment of food supplements; and if he will make a statement on the matter. [42262/18]

Paschal Donohoe (Dublin Central, Fine Gael)
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I propose to take Questions Nos. 159 and 165 together.

Issues of clarity and consistency relating to the VAT rating of health food supplements arise from the fact that a small selection of food supplements have historically been applied at the zero rate of VAT by concession of the Revenue Commissioners since the introduction of VAT in 1972. The majority of food supplements, however, are charged at the 23% standard VAT rate.

The expansion and diversification of the food supplement market since 1972, has led to a significant growth in the number and variety of food supplement products which do not qualify for the Revenue concession. The Revenue Commissioners have received a large volume of requests for confirmation of the VAT treatment on a broad range of food supplements in recent years, leading to compliance concerns and calls for fiscal neutrality.

The Revenue Commissioners has engaged with industry representatives on the matter and one solution would be to legislate to apply a reduced VAT rate to all food supplements as the VAT Directive does not permit the application of the zero rate to food supplements.