Anne Rabbitte (Galway East, Fianna Fail)
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67. To ask the Minister for Finance if he considered making a proposal to discuss ways to alleviate VAT on Sky services for pubs as hospitality providers; and if he will make a statement on the matter. [43403/24]

Jack Chambers (Dublin West, Fianna Fail)
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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 EU VAT Directive provides that all goods and services are liable to VAT at the standard rate, unless they fall within the categories of goods and services specified in Annex III of the VAT Directive, in respect of which Member States may apply a lower rate of VAT.

It should be noted that while internet access and live streaming of certain events are included in Annex III of the VAT Directive it is not possible to provide a separate VAT rate for businesses in the hospitality sector when they purchase these services.

Change to VAT rates applied to goods and services will be considered as part of the normal budget process.

However, it should be noted that VAT registered businesses can reclaim VAT on inputs so a change in VAT rates for internet access or live streaming events would not result in a net financial benefit for those businesses.

Colm Burke (Cork North Central, Fine Gael)
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68. To ask the Minister for Finance if he will give due consideration to removing VAT on the sale of wigs, currently charged at 23%, to those with medical conditions, such as cancer or alopecia sufferers; and if he will make a statement on the matter. [43331/24]

Jack Chambers (Dublin West, Fianna Fail)
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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 EU VAT Directive provides that all goods and services are liable to VAT at the standard rate, unless they fall within the categories of goods and services specified in Annex III of the VAT Directive, in respect of which Member States may apply a lower rate of VAT.

Wigs are not included in the categories of goods and services on which the EU Directive allows a lower rate of VAT to be applied, and as such they are liable to VAT at the standard rate. There is no discretion under the Directive for Ireland to apply a lower rate of VAT to the supply of wigs.

However, EU law does allow 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 the zero rate to children’s clothing. Therefore, wigs which are described, labelled, marked, or marketed for children under 11 years of age would qualify for the zero rating as an item of children’s clothing.

I am further advised by Revenue that wigs have previously been confirmed as an allowable health expense on income tax. Where medical evidence indicates that it is necessary in the provision of health care, the cost may be allowed on the advice of a medical practitioner. Claims for such relief can be made through the MyAccount portal on the Revenue website.