Jackie Cahill (Tipperary, Fianna Fail)
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287. To ask the Minister for Finance if voluntary organisations can reclaim VAT on defibrillators; if so, the way they may go about doing so; and if he will make a statement on the matter. [53086/21]

Paschal Donohoe (Dublin Central, Fine Gael)
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VAT legislation in Ireland as set out in the VAT Consolidation Act, 2010 must comply with the EU VAT Directive. There is no scope in the EU VAT Directive to exempt supplies or services on the basis of charitable status.

There is no provision in either European law or Irish VAT law to allow a zero-rating or exemption for supplies of this nature.

In recognition of this issue, which affects charities right across Ireland, I introduced a VAT Compensation Scheme for Charities in Budget 2018 to relieve the VAT burden on charities and to partially compensate them for the VAT they incur on expenditure related to independently raised income.

The Scheme applies to VAT incurred on expenditure on or after 1 January 2018 and will only be paid one year in arrears. The conditions under which a person can qualify for payment under this scheme are outlined on the Revenue Commissioners’ website. Where the total amount of eligible claims from all charities exceeds the capped amount, which is currently set at €5 million, claims are paid on a pro rata basis.