Sorca Clarke (Longford-Westmeath, Sinn Fein)
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250. To ask the Minister for Finance if he has considered reducing the VAT for beauty services along with hairdressers; and if he will make a statement on the matter. [2254/25]

Claire Kerrane (Roscommon-Galway, Sinn Fein)
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253. To ask the Minister for Finance if plans to reduce the VAT rate for the hospitality sector will include a service (details supplied); and if he will make a statement on the matter. [2284/25]

Rose Conway-Walsh (Mayo, Sinn Fein)
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264. To ask the Minister for Finance if the lower VAT rate which media reports have indicated, will be applicable to hairdressers and to the beauty industry; when these changes will come into effect; where further information can be found; and if he will make a statement on the matter. [2698/25]

Paula Butterly (Louth, Fine Gael)
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275. To ask the Minister for Finance the plans, if any, in place to reduce the current 13.5% VAT rate to the beauty industry; and if he will make a statement on the matter. [2957/25]

Paschal Donohoe (Dublin Central, Fine Gael)
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I propose to take Questions Nos. 250, 253, 264 and 275 together.

As the Deputies will be aware, in making any decision in relation to VAT rates or other taxation measures, the Government must balance the costs of the measures in question against their impact and the overall budgetary framework. All decisions in relation to changes to VAT rates, including the full scope of any reduction, will therefore be made in line with this framework.

However, the Deputies should note that the EU VAT Directive, with which Irish VAT Law must comply, contains provisions under Annex III which allows for a reduced rate of VAT on specific goods and services. While hairdressing is included in Annex III to allow for a reduced rate, beauty salons are not listed.

However beauty salons, which provide services consisting of the care of the human body, including beauticians, are subject to the 13.5% rate.

This arises from the fact that many of goods and services to which Ireland applies a reduced rate of VAT, including services related to care of the human body, have their basis under an EU derogation that provides that as Ireland applied a reduced rate to these items on 1 January 1991, we are entitled to continue applying that reduced rate to those items. However, this is conditional on the rate being no less than 12%. These are known as ‘parked’ items, and as the services provided by beauticians are part of these parked items, it is not possible for Ireland to apply the rate of 9% to them.

Liam Quaide (Cork East, Social Democrats)
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251. To ask the Minister for Finance his plans to apply a reduced rate of VAT to bottled water; and if he will make a statement on the matter. [2255/25]

Pat Buckley (Cork East, Sinn Fein)
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257. To ask the Minister for Finance if he will arrange for Revenue to issue a VAT refund to individuals who are living with a 'boil water notice' (details supplied), using bottled water that they are forced to purchase; and if he will make a statement on the matter. [2396/25]

Noel McCarthy (Cork East, Fine Gael)
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292. To ask the Minister for Finance if he will consider the establishment of a VAT refund on the purchase of bottled water for domestic households who continue to be affected by prolonged boil water notices, possibly by notifying the Revenue Commissioners directly of the affected Eircode; and if he will make a statement on the matter. [3089/25]

Paschal Donohoe (Dublin Central, Fine Gael)
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I propose to take Questions Nos. 251, 257 and 292 together.

The VAT rating of goods and services is subject to the requirements of the EU VAT Directive with which Irish VAT law must comply. In general, the Directive provides that all goods and services are liable to VAT at the standard rate unless they fall within those listed in Annex III, in respect of which Member States may apply a lower rate.

Ireland applies the standard rate of VAT, which is currently 23%, to the supply of drinks/beverages generally, including bottled water.

Milk and milk alternative drinks are subject to the zero rate of VAT, as are tea and coffee in non-drinkable form (for example, tea bags or coffee granules). In certain circumstances, the reduced rate of VAT (13.5%) can apply to the supply of tea and coffee (supplied in drinkable form), and fruit juices where they are supplied in the course of a catering or restaurant service.

Any suggestion for extending the application of a reduced VAT rate to bottled water would need to be considered carefully having regard to a range of factors including the impact on Exchequer revenues, any potential market distortions and fiscal neutrality concerns, the environmental impact of increased use of plastic, and the practical concerns that it would be difficult to administer and could increase the scope for manipulation of the VAT system and opportunities for tax avoidance.

It should be noted that as with any VAT reduction there is no guarantee that VAT reductions would be passed to the consumer.

As regards the suggestion to introduce an arrangement to refund VAT on bottled water incurred by consumers living within certain Eircodes, such a measure would not be compatible with the EU VAT Directive. Under EU law, generally only businesses that are registered for VAT and charge VAT on their supplies of goods and services are entitled to reclaim the VAT incurred on their business costs. There are restrictions, though, in relation to certain items, including drinks, so that these cannot be reclaimed where the item is purchased for use of the business owner, his or her employees or agents.