Written answers
Wednesday, 17 January 2024
Department of Finance
Tax Code
Pearse Doherty (Donegal, Sinn Fein)
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363. To ask the Minister for Finance how the introduction of VAT refund orders under section 103 of the Value-Added Tax Consolidation Act 2010 interacts with the VAT Directive where a minimum rate of VAT is required in a specific sector or categories of goods and services; and if he will make a statement on the matter. [1585/24]
Michael McGrath (Cork South Central, Fianna Fail)
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The application of VAT to goods and services is subject to the requirements of EU VAT law, with which Irish VAT law must comply. The EU VAT Directive provides a common framework of rules and principles which are to be applied across the EU by the various Member States.
The VAT Directive also provides that Member States may be permitted to maintain certain historic national arrangements, but only provided these are not expanded. On this basis, Ireland maintains a number of refund orders, which mostly originate from the 1970s and 1980s. Section 103 of the Value-Added Tax Consolidation Act 2010 is the provision in national primary legislation which relates to such orders. As with all national VAT law, the statutory provision is subject to the relevant rules and principles of EU VAT law which, on this matter, include the EU restriction on any expansion of the historic arrangements.
Maintenance of the historic refund orders does not interact with the EU rules on minimum VAT rates.
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