Gerald Nash (Louth, Labour)
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379.To ask the Minister for Finance the position with respect to the charging of VAT on bicycles, e-bikes and cycling safety equipment; the estimated cost to zero-rate VAT on these items; if it is possible to zero-rate those items; if he has sought sanction at a European level to do so; and if he will make a statement on the matter. [32893/24]

Jack Chambers (Dublin West, Fianna Fail)
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With regard to VAT on bicycles, e-bikes and cycling safety equipment the position is that the standard rate of VAT currently applies to all of them.

Following amendments to the VAT Directive in 2022 it is possible for a reduced rate to be applied to bicycles and e-bikes. However a zero rate cannot be applied. In Ireland the two reduced rates are 13.5% and 9%.

The Deputy should note that it is not possible to apply a reduced or zero rate to bicycle safety equipment. Therefore the standard rate must apply.

The estimated cost of reducing the VAT on bicycles and e-bikes to 13.5% is €7m. The estimated cost of reducing the VAT on bicycles and e-bikes to 9% is €11m.

Member States do not need to seek sanction from the EU Commission to apply a reduced rate of VAT however they must ensure that a reduced rate is applied to no more than 24 categories within Annex III of the VAT Directive.

As the Deputy will be aware, it is a longstanding practice of the Minister for Finance not to comment, in advance of the Budget, on any tax matters that might be the subject of Budget decisions.