Jim O'Callaghan (Dublin Bay South, Fianna Fail)
Link to this: Individually | In context | Oireachtas source

167. To ask the Minister for Finance further to Parliamentary Question No. 244 of 14 May 2024, under the Value-Added Tax (Refund of Tax) (No. 15) Order 1981 (people with disabilities can claim a VAT refund on aids and appliances that help them carry out daily activities at home or at work), if the Government has any plans to review the process by which this tax refund is claimed; and if he will make a statement on the matter. [23920/24]

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. In general, the Directive provides that all goods and services are liable to VAT which is paid by the final consumer.

The Directive allows for certain historic VAT treatments to be maintained under certain conditions, and Ireland has retained the application of a relieving provision, the Value Added Tax (Refund of Tax) (No. 15) Order, 1981 (SI No. 428 of 1981), (VAT Refund Order).

The VAT Refund Order provides that disabled persons, defined as persons who, as a result of an injury, disease, congenital deformity or physical or mental illness, or defect, suffer from a loss of physical or mental faculty resulting in a specified degree of disablement, may apply for a refund of VAT incurred on qualifying goods.

Qualifying goods are defined as goods other than mechanically propelled road vehicles which are aids or appliances, including parts and accessories, specially constructed or adapted for use by a disabled person and includes goods which, although not so specially constructed or adapted, are of such a kind as might reasonably be treated as so constructed or adapted having regard to the particular disablement of that person.

Claims process

Claims for repayment should be made on Revenue’s eRepayments system through MyAccount. Alternatively, paper applications can be made on Form VAT 61A. Applications must be submitted within four years from the end of the VAT period to which the claim relates.

At present, paper claims have an average processing time of 7 to 8 weeks and online claims would have an average processing time of 4 to 5 weeks. Revenue endeavour to get claims processed within 20 working days if all supporting documentation is in order. However, refunds may be delayed where further information is required by Revenue to validate the claim.

Government has no plans to review the process by which this VAT refund is claimed.