Cormac Devlin (Dún Laoghaire, Fianna Fail)
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179. To ask the Minister for Finance if consideration will be given to reducing the VAT rate on personal protective equipment to 0%; and if he will make a statement on the matter. [14391/20]

Paschal 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 (including personal protective equipment) 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. 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. An extension of 3 months is currently being considered.

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 certain goods as necessary to combat COVID-19 (including personal protective equipment) 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 personal protection equipment 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.

The Deputy will be aware that businesses which are registered for VAT and incur VAT in relation to goods which will be used for the purposes of the taxable business are entitled to reclaim the VAT incurred through their VAT return.

Cathal Crowe (Clare, Fianna Fail)
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180. To ask the Minister for Finance if a reduced VAT rate will be implemented for the tourism sector similar to the steps taken during the last recession to help businesses survive as they reopen post Covid-19. [14398/20]

Gerald Nash (Louth, Labour)
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193. To ask the Minister for Finance his plans for a lower VAT rate for the tourism sector; his views on the findings from the 2018 OECD economic survey of Ireland report which recommended that preferential VAT rates be eliminated and lower rates for discretionary categories of expenditure, for example, hotel and restaurants are regressive; and if he will make a statement on the matter. [14589/20]

Gerald Nash (Louth, Labour)
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194. To ask the Minister for Finance his plans for a lower VAT rate for the tourism sector in view of the July 2018 report of his Department stating the regressive nature of the reduction; and if he will make a statement on the matter. [14590/20]

Paschal Donohoe (Dublin Central, Fine Gael)
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I propose to take Questions Nos. 180, 193 and 194 together.

The Government is fully aware of the unprecedented impact that the coronavirus is having on business and people’s livelihoods. In this regard a range of measures have been introduced to provide income support to those who need it while also giving confidence to employers to retain the link with employees so that when this crisis passes our people can get back to work as quickly and seamlessly as possible.

In addition to current support measures, my officials are examining a range of possible measures to ensure that the economy is in a position to recover rapidly while maintaining a stable tax base.