Written answers

Thursday, 9 March 2023

Photo of Mark WardMark Ward (Dublin Mid West, Sinn Fein)
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189. To ask the Minister for Finance his views on a matter (details supplied); if, in his opinion, this will mean that all counsellors and psychotherapists will be exempt from this 13.5% VAT rate; and if he will make a statement on the matter. [12043/23]

Photo of Michael McGrathMichael 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 the requirements of EU VAT law with which Irish VAT law must comply. Under Irish VAT legislation professional medical care services recognised as such by the Department of Health and Children are exempt from VAT.

Professional medical care services recognised by the Department of Health and Children are generally those medical care services supplied by health professionals who are enrolled, registered, regulated, or designated on the appropriate statutory register provided for under the relevant legislation in force in the State or equivalent legislation applicable in other countries. This includes health professionals registered under the Medical Practitioners Act 2007, the Nurses and Midwives Act 2011 and those engaged in a regulated profession designated under Section 4 of the Health and Social Care Professionals Act 2005.

Statutory Instrument No. 170 of 2018 (Health and Social Care Professionals Act 2005 (Regulations 2018)) of 2 July 2018 designates psychotherapists and counsellors as a regulated profession and establishes the Counsellors and Psychotherapists Registration Board. Therefore, in accordance with the law, Revenue applies the VAT exemption to the supply of medical services by these professionals as and from the date of their registration. However, I understand that the register of Counsellors and Psychotherapists envisaged by that legislation has not yet opened. Where such services are supplied by a person who is not so registered (including where the services are provided by a person in advance of their being so registered) then the supply of the service is liable to the reduced rate of VAT, currently 13.5%.

As with all TAC determinations they are not binding but only relate to the particular facts of each case and TAC Determination 32TACD2022 is only applicable to the specific details of that case. The Deputy may recall that the legislation has been recently amended to clarify the position that the supply of a service by Counsellors and Psychotherapists continues to be subject to the reduced rate of VAT.

Photo of Paul KehoePaul Kehoe (Wexford, Fine Gael)
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190. To ask the Minister for Finance the reason VAT is charged on eBooks for use in schools, when no VAT is charged on school books; if this VAT can be removed or if parents can be facilitated to claim this VAT back; and if he will make a statement on the matter. [12052/23]

Photo of Michael McGrathMichael McGrath (Cork South Central, Fianna Fail)
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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 of VAT. Currently, Ireland has two reduced rates of 13.5% and 9%.

Ireland applies the zero rate of VAT to the supply of printed books, including schoolbooks and the 9% reduced VAT rate applies to the supply of electronic publications, including electronic schoolbooks.

Regarding the VAT paid on electronic schoolbooks there is no scope under the Directive for customers to claim a refund.

Photo of Marc MacSharryMarc MacSharry (Sligo-Leitrim, Fianna Fail)
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191. To ask the Minister for Finance if he will outline the amount of revenue generated by the sugar sweetened drinks tax in 2022. [12059/23]

Photo of Michael McGrathMichael McGrath (Cork South Central, Fianna Fail)
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I am advised by Revenue that the provisional amount collected from the Sugar Sweetened Drinks Tax in 2022 is €32 Million.

Photo of Marc MacSharryMarc MacSharry (Sligo-Leitrim, Fianna Fail)
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192. To ask the Minister for Finance if he intends to expand sugar related taxes to include other goods including a wide range of high sugar quantity confectionary sweets, snacks and other consumable products to help tackle the national obesity pandemic. [12061/23]

Photo of Michael McGrathMichael McGrath (Cork South Central, Fianna Fail)
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While the implementation of the Sugar Sweetened Drinks Tax is a matter for the Finance Act, any policy decisions around reforming or expanding the tax would be subject to engagement with the Department of Health on obesity policy and possibly State Aid consultation with the European Commission.

Following a proposal developed by the Department of Health in consultation with stakeholders, the Department of Finance introduced the Sugar-Sweetened Drinks Tax (SSDT) in 2018. The SSDT has now been in operation for more than four years. Initial indications are that the tax has had a positive impact, particularly in terms of encouraging drinks producers to reduce the sugar content in their products. A more comprehensive analysis of the effects of the tax is needed in order to inform any further fiscal policy considerations, and the Department of Health has commenced an evaluation of the measure.

A literature review was carried out by the Department of Health to make an assessment of the potential approaches to evaluate the impact of the tax. The Department has also developed links with researchers who are working on projects relevant to the evaluation topic, which has impacted upon the nature and timeline of the work. Further work on the analysis of the impact of the measure is expected to be carried out in the coming months.

The outcome of this analysis will assist the Department of Health in terms of examining and considering any possible further measures, in consultation with the Department of Finance.

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