Catherine Murphy (Kildare North, Social Democrats)
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112. To ask the Minister for Finance if he will consider amending the VAT liability on mobility aides (details supplied). [38552/24]

Jack Chambers (Dublin West, Fianna Fail)
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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, and that VAT is paid by the final consumer.

EU law allows for certain historic VAT treatments to be maintained by a Member State under certain strict conditions, including that a historic treatment cannot be widened beyond its existing scope. On this basis, Ireland has retained its application of a relieving provision, the Value Added Tax (Refund of Tax) (No. 15) Order, 1981 (SI No. 428 of 1981).

This VAT Refund Order provides that people with disabilities may apply for a refund of VAT incurred on qualifying goods. The legislation makes the refund available to a person who, as a result of an injury, disease, congenital deformity or physical or mental illness, or defect, suffers from a loss of physical or mental faculty resulting in a specified degree of disablement, as detailed in the Order.

Under the law, the refund is available for goods (other than mechanically propelled road vehicles) which are aids or appliances specially constructed or adapted for use by a disabled person, and goods which, although not so specially constructed or adapted, are of such a kind as might reasonably be treated as such, having regard to the particular disablement of the person. The purchase of a home chair lift for stairs qualifies for a refund of VAT under the refund order.

An application under the Refund Order should be made on Form VAT 61A and submitted to the Central Repayments Office in Limerick. Further information is available on the Revenue website www.revenue.ie/en/vat/repayments-to-unregistered-persons/disabled-persons/reclaim-vat-aids-appliances.aspx

New rules agreed in 2022 allow Member States greater flexibility in the application of reduced and zero rates of VAT. Any changes to the application of VAT are considered on an annual basis as part of the normal budget and finance bill process.