Dáil Éireann Debate, Tuesday - 13 December 2022
250. Deputy Paul Kehoe asked the Minister for Finance if polythene covers for growing maize are exempt from VAT regardless of whether the traditional oxo-degradable film or the newer compostable film is used; and if he will make a statement on the matter. [62142/22]
View answerI am advised by Revenue that the VAT rating of goods and services is subject to the requirements of 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 (currently 23% in Ireland), 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. Ireland is also permitted to retain some historic VAT arrangements, under strict conditions.
The supply of a polythene cover – including the traditional oxo-degradable film and the newer compostable film – is liable to VAT at the standard rate of 23%. The supply of the agricultural service of sowing is liable to VAT at the reduced rate of 13.5%. The supply of maize seeds when used for sowing in order to produce food is liable to VAT at the zero rate. However, the combined supply of polythene covers with the supply and sowing of maize seeds for the production of food, including animal feed, for an inclusive price, is liable to VAT at the zero rate.
