Darren O'Rourke (Meath East, Sinn Fein)
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284. To ask the Minister for Finance if he has considered reducing the VAT rate on the purchase of defibrillators by cardiac first responder groups; and if he will make a statement on the matter. [4485/22]

Paschal Donohoe (Dublin Central, Fine Gael)
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Defibrillators, other than implantable defibrillators, are liable to VAT at the standard rate, which in Ireland is 23%. Parts or accessories are also liable to VAT at the standard rate. There is no provision under existing VAT law that would make it possible to apply a reduced rate or zero rate to the supply of such products. Under the EU VAT Directive, Member States may retain the zero rate on goods and services which were in place on 1 January 1991, but cannot extend the zero rate to new goods and services. As such a zero rate cannot presently be applied to defibrillators.

 The EU Commission published a proposal on the reform of VAT rates in January 2018 which would allow Member States more flexibility in how they apply VAT rates. The compromise text agreed at ECOFIN in December has been amended significantly in comparison to the original proposal so the EU Parliament will once again be consulted for their opinion.

Once the Parliament has issued its opinion on the proposal, the Council will formally adopt the directive. It will then enter into force on the twentieth day following that of its publication in the Official Journal of the European Union and, if the text remains unchanged, will apply from 1 January 2025.

In the interim officials in my Department will be reviewing the options now available to Ireland in setting VAT rates. Future tax changes are generally taken in the context of the Budget. Deputies will be aware that my officials prepare a series of papers containing tax options for the Tax Strategy Group to be considered in the context of the budgetary process, alongside a wide range of submissions from various stakeholders and lobby groups.