Claire Kerrane (Roscommon-Galway, Sinn Fein)
Link to this: Individually | In context | Oireachtas source

158. To ask the Minister for Finance if consideration will be given to including automatic calf feeders as VAT refundable; and if he will make a statement on the matter. [20743/24]

Michael McGrath (Cork South Central, Fianna Fail)
Link to this: Individually | In context | Oireachtas source

The VAT treatment of goods and services is subject to EU VAT law, with which Irish VAT law must comply.

As the Deputy will be aware, Irish VAT law permits flat-rate farmers to reclaim VAT they incur on some particular business expenditure, as set out in the 2012 Refund Order. The Refund Order is permitted under EU law, subject to certain conditions, including that its scope is not extended. This means that the order may not be altered to permit refunds of VAT incurred on farming business costs that are not currently provided for in the order, such as automatic calf feeders.

The Deputy may wish to note that VAT registered farmers can claim an input credit for the automatic calf feeder through their VAT return.

Noel Grealish (Galway West, Independent)
Link to this: Individually | In context | Oireachtas source

159. To ask the Minister for Finance if he will help Ireland reduce carbon emissions and encourage a modal shift by reducing the tax applicable to e-bikes and other relevant modes of transport that decarbonise the sector; and if he will make a statement on the matter. [20875/24]

Michael McGrath (Cork South Central, Fianna Fail)
Link to this: Individually | In context | Oireachtas source

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 VAT Directive provides that all goods and services are liable to VAT at the standard rate unless they are exempt from VAT or fall within Annex III of the Directive, in which case lower VAT rates may apply subject to certain rules. Currently Ireland has a standard VAT rate of 23% and two reduced rates of 13.5% and 9%.

The Deputy should note while I did give the matter some consideration, no decision was made in Budget 2024 to reduce the VAT rate on bicycles and ebikes. Further consideration can be given to this matter as part of the annual Budget process for in Budget 2025.

However the Deputy may wish to note that on the basis of Annex III, Ireland applies a reduced rate, currently 13.5%, to the supply of hiring bicycles, including e-bikes for a short period of time (no more than 5 weeks); hire for longer periods is subject to VAT at the standard rate of 23%.