Séamus McGrath (Cork South-Central, Fianna Fail)
Link to this: Individually | In context

227. To ask the Minister for Finance to review and remove VAT on sunscreen protection products, as they are an essential health product; and if he will make a statement on the matter. [40441/25]

Paschal Donohoe (Dublin Central, Fine Gael)
Link to this: Individually | In context

I am advised by Revenue that the VAT rating of goods and services is subject to the requirements of the EU VAT Directive with which Irish VAT law is obliged to 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 certain listed categories under Annex III of the Directive to which Member States may apply a lower rate.

Sunscreens and sun protection factor products are not included in the categories of goods and services to which the EU VAT Directive allows a lower rate to be applied, and so they are liable to VAT at the standard rate. There is no discretion under the EU VAT Directive for Ireland to apply a reduced rate of VAT to the supply of sunscreens and sun protection factor products.

Regarding health products and medicines, officials from my Department sought clarity from the European Commission on whether the definition could be extended to include sun protection products. The Commission confirmed that this could not be done as they are deemed to be classed as a product in the category of cosmetic or toilet preparations. The Deputy should be advised that expanding the scope of Annex III requires unanimity among all Member States and that no further changes are expected in the medium term. The latest reforms to Annex III which expanded the scope in 2022 were the result of four years of negotiations.