Michael McGrath (Cork South Central, Fianna Fail)
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178. To ask the Minister for Finance if he or the Revenue Commissioners have discretion to reduce the rate of VAT that applies to non-alcoholic beers; and if he will make a statement on the matter. [5602/19]

Paschal Donohoe (Dublin Central, Fine Gael)
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VAT is governed by the EU VAT Directive with which Irish VAT law must comply. The Directive provides that all goods and services are liable to VAT at the standard rate, currently 23% in Ireland, unless there is a provision in the Directive that permits a lower rate to be applied.

While Ireland applies reduced and zero rates of VAT to a select range of goods and services under Article III of the VAT Directive, and by historical derogation, there is no means under EU VAT law to apply a lower VAT rate to the supply of non-alcoholic beer.

Any changes to VAT rates outside of what is currently permitted though the EU VAT Directive must be negotiated at EU technical working groups and ultimately agreed at ECOFIN. As with all tax files, any such changes require unanimous agreement from all Member States.

Michael McGrath (Cork South Central, Fianna Fail)
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179. To ask the Minister for Finance the position on the VAT rate that applies to conferencing facilities; if there is national discretion in relation to the rate charged; and if he will make a statement on the matter. [5609/19]

Paschal Donohoe (Dublin Central, 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. In accordance with the EU VAT Directive, the supply of conference facilities is liable to the standard rate of VAT, currently 23%.

Where a supply of a conference room takes place in a hotel it would come within the meaning of a ‘letting of a room in a hotel or guest house’ as provided for in paragraph 11 of Schedule 3 to the VAT Consolidation Act, 2010. On that basis, the supply of the room is liable to the reduced VAT rate of 13.5%. This reduced rate applies to the room only and not to any other supplies associated with the service being provided. In this context, the provision of a room or rooms in a conference centre does not come within the scope of the application of the reduced rate of VAT as it is not a ‘letting of a room in a hotel or guest house’.

Furthermore, there is no scope for national discretion to apply the reduced rate solely to the supply of conference facilities, as the provision of conferencing facilities is not included in Annex III of the VAT Directive (which provides that Member States may apply reduced VAT rates to goods or services listed therein), nor did it apply at a reduced or zero rate since 1 January 1991.