Robert Troy (Longford-Westmeath, Fianna Fail)
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362. To ask the Minister for Finance the reason that dentists and dental surgeries have not been able to avail of a VAT exemption on PPE which was purchased during the pandemic period (details supplied); and if he will make an amendment to introduce a VAT exemption with regard to PPE. [1898/23]

Michael McGrath (Cork South Central, Fianna Fail)
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I am advised by Revenue that the VAT rating of goods and services is subject to EU VAT law, with which Irish VAT law must comply.  In general, the Directive provides that all goods and services are liable to VAT at the standard rate unless they fall within Annex III of the Directive, in respect of which Member States may apply either one or two reduced rates of VAT. Ireland currently operates two reduced rates of VAT, 13.5% and 9%, as permitted by the Directive. On this basis, the supply of PPE is liable to VAT at the standard rate (currently 23%).

However, as a temporary measure, in response to the outbreak of Covid 19, the European Commission adopted Decision C (2020)2146, on 3 April 2020. The decision provided for the importation of goods from outside the European Union without the payment of VAT or Customs Duty with effect from April 2020.  Relief was permitted where the goods were imported by or on behalf of State bodies, public bodies and other bodies governed by public law, disaster relief agencies and including organisations regulated by the State and involved in the care, support, and treatment of people at risk of COVID-19. For the relief to apply, the goods were to be distributed or made available free of charge to the persons affected by or at risk from or involved in combating the COVID-19 outbreak by the bodies and organisations referred to above.

Following a request from my Department, Revenue also implemented the application of the zero rate of VAT to the domestic supply of personal protection equipment, as necessary to combat COVID-19 when supplied to hospitals, nursing homes, GP practices and the like, for use in the delivery of COVID-19 related health care services to their patients. The relief was originally scheduled to end on 31 July 2020 but was extended to 30 June 2022 following review by the Commission and consultation with Member States. The Commission decision did not provide scope to extend the relief to other sectors.  Any extension of the relief in the State to dentists, shop owners, etc., not directly engaged in the delivery of Covid 19 related health care, would have been outside the scope of what was permitted.