Written answers

Tuesday, 22 February 2022

Photo of David CullinaneDavid Cullinane (Waterford, Sinn Fein)
Link to this: Individually | In context | Oireachtas source

20. To ask the Minister for Finance if his Department has updated projections for VAT receipts in 2022 relative to the estimates of receipts for the year ending 31 December 2022 as provided in the White Paper; if so, if he will provide those projections; and if his Department expects VAT receipts to be greater than previously forecast as a result of higher food and energy prices. [9715/22]

Photo of Paschal DonohoePaschal Donohoe (Dublin Central, Fine Gael)
Link to this: Individually | In context | Oireachtas source

Irish VAT law must comply with the EU VAT Directive, which directs that Member States must apply a standard VAT rate of 15% or more, and can apply up to two reduced VAT rates of 5% or more. Ireland applies the 23%, 13.5% and 9% VAT rates in this context.

The standard rate of 23% applies to approximately 51% of activity, including cars, petrol, diesel, alcohol, tobacco, electrical equipment and CD/DVDs.

The reduced rate of 13.5% applies to approximately 28% of activity, including fuel used for heat or light, construction, housing, labour intensive services and general repairs and maintenance.

The reduced rate of 9% applies to about 10% of activity, including holiday accommodation, restaurants, digital and print newspapers and periodicals, and sporting facilities.

A zero rate accounts for a little over 11% of activity, including to most food, books, children’s clothes and shoes, and oral medicines.

In addition a super-reduced rate of 4.8% applies to livestock registered by farmers while some activity is entirely exempt from VAT, including transport, water, education, financial services, schools and hospitals, services provided by charities, etc.

VAT receipts for 2022 were projected at €16,895 million in Budget 2022. This was slightly above the White Paper projection of €16,770 million. My Department will update the forecast for taxation revenues in the Stability Programme Update, to be published in April 2022.

Comments

No comments

Log in or join to post a public comment.