Written answers

Tuesday, 12 October 2021

Department of Finance

Regulatory Bodies

Photo of Paul DonnellyPaul Donnelly (Dublin West, Sinn Fein)
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101. To ask the Minister for Finance further to Parliamentary Question No. 671 of 21 September 2021, the criteria under which criteria psychologists, who are awaiting regulation by CORU under the Health and Social Care Professionals Act 2005, given VAT exemption rated at 13.5% on earnings over €37,500; the reason that counsellors and psychotherapists who are awaiting regulation under the same Act do not meet this criteria; and if he will make a statement on the matter. [49108/21]

Photo of Paschal DonohoePaschal 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 the requirements of EU VAT law with which Irish VAT law must comply. Under our legislation professional medical care services recognised as such by the Department of Health and Children are exempt from VAT. Professional medical care services recognised by the Department of Health and Children are generally those medical care services supplied by health professionals who are enrolled, registered, regulated, or designated on the appropriate statutory register provided for under the relevant legislation in force in the State or equivalent legislation applicable in other countries. This includes health professionals registered under the Medical Practitioners Act 2007, the Nurses Act 1985 and those engaged in a regulated profession designated under Section 4 of the Health and Social Care Professionals Act 2005.

Statutory Instrument No. 170 of 2018 (Health and Social Care Professionals Act 2005 (Regulations 2018)) of 2 July 2018 designates psychotherapists and counsellors as a regulated profession and establishes the Counsellors and Psychotherapists Registration Board. Professional counselling and psychotherapy services provided by persons registered by this Board are exempt from VAT from the date of their registration. Where such services are supplied by a person who is not so registered (including where the services are provided by a person in advance of their being so registered) then the supply of the service is liable to the reduced rate of VAT, currently 13.5%.

I understand that Psychologists were listed as designated professionals in the Health and Social Care Professionals Act 2005, although the register of psychologists envisaged by that legislation has not yet opened. I am advised by Revenue that, because the supply of services by psychologists were exempt from VAT for many years prior to the 2005 Health legislation, that pre-existing exemption has been maintained pending commencement of the Psychologists register.

I also understand that, in 2018, Counsellors and Psychotherapists were added by the Minister for Health to the list of designated professionals for the purposes of the 2005 Act. I am advised by Revenue that services provided by these professionals had not been granted VAT exemption prior to this. Therefore, in accordance with the law, Revenue applies the VAT exemption to the supply of medical services by these professionals as and from the date of their registration.

Photo of Jim O'CallaghanJim O'Callaghan (Dublin Bay South, Fianna Fail)
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102. To ask the Minister for Finance further to Parliamentary Question No. 176 of 9 September 2021, the criteria under which psychologists who are awaiting regulation by CORU under the Health and Social Care Professionals Act 2005 are given VAT exemption rated at 13.5% on earnings over €37,500; the reason that counsellors and psychotherapists who are awaiting regulation under the same Act do not meet this criteria; and if he will make a statement on the matter. [49134/21]

Photo of Paschal DonohoePaschal 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 the requirements of EU VAT law with which Irish VAT law must comply. Under our legislation professional medical care services recognised as such by the Department of Health and Children are exempt from VAT. Professional medical care services recognised by the Department of Health and Children are generally those medical care services supplied by health professionals who are enrolled, registered, regulated, or designated on the appropriate statutory register provided for under the relevant legislation in force in the State or equivalent legislation applicable in other countries. This includes health professionals registered under the Medical Practitioners Act 2007, the Nurses Act 1985 and those engaged in a regulated profession designated under Section 4 of the Health and Social Care Professionals Act 2005.

Statutory Instrument No. 170 of 2018 (Health and Social Care Professionals Act 2005 (Regulations 2018)) of 2 July 2018 designates psychotherapists and counsellors as a regulated profession and establishes the Counsellors and Psychotherapists Registration Board. Professional counselling and psychotherapy services provided by persons registered by this Board are exempt from VAT from the date of their registration. Where such services are supplied by a person who is not so registered (including where the services are provided by a person in advance of their being so registered) then the supply of the service is liable to the reduced rate of VAT, currently 13.5%.

I understand that Psychologists were listed as designated professionals in the Health and Social Care Professionals Act 2005, although the register of psychologists envisaged by that legislation has not yet opened. I am advised by Revenue that, because the supply of services by psychologists were exempt from VAT for many years prior to the 2005 Health legislation, that pre-existing exemption has been maintained pending commencement of the Psychologists register.

I also understand that, in 2018, Counsellors and Psychotherapists were added by the Minister for Health to the list of designated professionals for the purposes of the 2005 Act. I am advised by Revenue that services provided by these professionals had not been granted VAT exemption prior to this. Therefore, in accordance with the law, Revenue applies the VAT exemption to the supply of medical services by these professionals as and from the date of their registration.

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