Emer Higgins (Dublin Mid West, Fine Gael)
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236. To ask the Minister for Finance if his Department is considering reducing the VAT rate to 9% for dry-cleaning businesses in line with all other sectors of the hospitality industry; and if he will make a statement on the matter. [9429/22]

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 the requirements of EU VAT law, with which Irish VAT law must comply. In general, the EU VAT Directive provides that all goods and services are liable to VAT at the standard rate, unless they fall within categories of goods and services specified in Annex III of the VAT Directive, in respect of which Member States may apply a lower rate from VAT. The scope under the VAT Directive to apply a 9% rate is limited to certain categories, including tourism and hospitality related goods and services, but this does not include dry-cleaning and laundry services, which remain liable at the 13.5% rate.