Michael Ring
Question:160 Mr. Ring asked the Minister for Finance the plans he has to legislate for a fairer VAT refund mechanism for charities, to enable them to reclaim their VAT similar to businesses. [29066/03]
Vol. 576 No. 1
160 Mr. Ring asked the Minister for Finance the plans he has to legislate for a fairer VAT refund mechanism for charities, to enable them to reclaim their VAT similar to businesses. [29066/03]
163 Mr. J. Higgins asked the Minister for Finance his plans to change the situation whereby charities, unlike businesses, are not entitled to claim their VAT back. [29123/03]
I propose to take Questions Nos. 160 and 163 together.
VAT registered businesses and charitable and voluntary organisations are subject to different treatment under EU and Irish VAT law. Registered businesses are allowed to recover input VAT since they generally charge VAT on their onward sales to their customers. Charities and not-for-profit bodies on the other hand are exempt and do not charge VAT for the services they provide and therefore are unable to recover VAT incurred on their inputs.