Aengus Ó Snodaigh (Dublin South Central, Sinn Fein)
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332. To ask the Minister for Finance further to Parliamentary Question No. 211 of 17 April 2018, if he has sought the alteration of the EU VAT Directive to allow for the removal of VAT charges on the rental of disability aids especially during an interim period in cases in which a disabled person is awaiting the delivery or installation of a purchased disability aid which are exempted from VAT. [30676/21]

Paschal Donohoe (Dublin Central, Fine Gael)
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I am advised by Revenue that the VAT rating of goods and services is subject to EU VAT law, with which Irish VAT law must comply.

The EU VAT Directive provides for particular categories of goods and services where a Member State may apply a lower rate or exemption from VAT. Under Irish legislation, the supply of a range of medical equipment and appliances – which include invalid carriages (excluding mechanically propelled road vehicles), orthopedic appliances, deaf aids, walking frames and crutches – falls within one of these categories and is subject to the zero rate of VAT. In addition, the Value-Added Tax (Refund of Tax) (No. 15) Order, 1981, provides in certain circumstances for the refund of VAT on goods which are aids or appliances and includes goods specially constructed or adapted for use that are purchased for the exclusive use of a person with a disability of a type specified for the purposes of the Order.

In accordance with the Directive, the supply of the rental of a disability aid is considered to be a service of hiring and is liable to VAT at the standard rate, currently 23%. There is no provision under the Directive to permit the removal of the application of VAT to the service of hiring, so consequently the change sought by the Deputy is not possible.