Written answers

Tuesday, 16 June 2020

Department of Finance

Covid-19 Pandemic

Photo of Emer HigginsEmer Higgins (Dublin Mid West, Fine Gael)
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81. To ask the Minister for Finance if the announcement by the Revenue Commissioners that there will be no VAT on PPE applies to dental practices; and if he will make a statement on the matter. [11049/20]

Photo of Paschal DonohoePaschal Donohoe (Dublin Central, Fine Gael)
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The European Commission Decision C(2020)2146, adopted on 3 April 2020, provides for the importation of goods to fight the effects of COVID -19 from outside the European Union without the payment of VAT or Customs Duty from January 2020.  Such relief is permitted where the goods are imported by or on behalf of State bodies, public bodies and other bodies governed by public law, disaster relief agencies and organisations approved by Revenue including organisations regulated by the State and involved in the care, support and treatment of people at risk of COVID-19 and there is no scope to extend this to other sectors. The goods must be distributed or made available free of charge to the persons affected by or at risk from or involved in combating the COVID-19 outbreak by the bodies and organisations referred to above. The relief is scheduled to end on 31 July 2020 but there is provision for an extension if this is required following a review and consultation with Member States.

Following a request from my Department, Revenue has also implemented, on an administrative basis, the application of the zero rate of VAT to the domestic supply of personal protection equipment, ventilators, thermometers, hand sanitisers and oxygen as necessary to combat COVID-19 when supplied to hospitals, nursing homes, GP practices and the like, for use in the delivery of COVID-19 related health care services to their patients.  This concessionary treatment will apply until 31 July, subject to review.  The scope of the relief corresponds with the relief on the importation of these goods by the bodies specified in the Commission Decision. 

Any further extension of zero rating to cover supplies of medical equipment and/or personal protection equipment to dentists and other sectors and businesses would require a change in legislation at EU level; the VAT Directive would not permit a legislative measure for the application of the zero rate of VAT to such supplies and there are no grounds in the Commission Decision that would support the adoption of such a measure, even on a temporary basis.

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