89. Deputy Michael Healy-Rae asked the Minister for Finance if a Ministerial regulation or guidance under section 46(1) VATCA 2010 clarifying that supplies of completed apartments under combined transaction structures shall be treated as "supply of a completed apartment" for the purpose of the reduced 9% rate (details supplied); and if he will make a statement on the matter. [60253/25]

As the Deputy will be aware, it was announced in Budget 2026 that the VAT rate applied to the sale of new apartments will be reduced from 13.5% to 9% with effect from October 8 of this year.

It has been acknowledged that the cost of developing apartments in Ireland has been a significant factor in constraining supply. This measure is aimed at addressing this viability issue, in line with commitments made in the Programme for Government, which aims to deliver over 300,000 new homes by the end of 2030, as well as the revised National Planning Framework (NPF), which envisions a greater development of apartments to further social policy goals such as compact and sustainable development.

It is intended that the 9% rate will apply to the broadest range of apartment developments, encompassing construction services and the supply of land on which qualifying apartments are to be developed, subject to the constraints of the EU VAT Directive. The current provision is being reviewed with a view to ensuring it delivers on the policy intention.