Brendan Howlin (Wexford, Labour)
Link to this: Individually | In context | Oireachtas source

230. To ask the Minister for Finance his plans to alter the VAT regime on health supplements; and if he will make a statement on the matter. [43963/18]

Paschal Donohoe (Dublin Central, Fine Gael)
Link to this: Individually | In context | Oireachtas source

Issues of clarity 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.  Revenue 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.

Officials from my Department have engaged with Revenue, the Department of Health and industry representatives on the matter, however, investigations are ongoing.