428. Deputy Ann Graves asked the Tánaiste and Minister for Finance if he will consider a review of VAT treatment of diagnostic medical devices, aligning them with the exemption already granted to defibrillators; to clarify and expand eligibility for VAT and duty relief for community-led, non-commercial health trials; if he will enable temporary admission or equivalent relief for short-term diagnostic equipment imported for trials and returned after use; and if he will ensure that Revenue guidance reflects modern community-health practice, not only institutional or hospital-based models. [27993/26]

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 must comply. In general, the VAT Directive provides that all goods and services are liable to VAT at the standard rate, currently 23% in Ireland, unless they fall within 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.

Under Annex III of the VAT Directive, Member States may decide to apply a reduced or zero-rate VAT to certain supplies including medical equipment, appliances, devices, items, aids and protective gear, including health protection masks, normally intended for use in health care or for the use of the disabled, goods essential to compensate and overcome disability, as well as the adaptation, repair, rental and leasing of such goods.

On this basis, Ireland applies a zero rate of VAT to the supply of a range of medical equipment, devices and appliances, which include, for example, automated external defibrillators, invalid carriages of a kind designed for use by invalids or infirm perrons,(excluding mechanically propelled road vehicles), orthopaedic appliances, surgical belts, trusses, deaf aids, artificial limbs and walking frames and crutches, and parts or accessories suitable for use solely or principally with the foregoing.

Medical equipment, devices and appliances not falling within these categories are subject to VAT at the standard rate.

Revenue has published guidance on the Revenue website - www.revenue.ie/en/tax-professionals/tdm/value-added-tax/part03-taxable-transactions-goods-ica-services/Goods/VAT-treatment-of-Medical-Equipment-and-Appliances.pdf.

Under certain circumstances, VAT may be reclaimed on the purchase or importation of new medical and research equipment. The reliefs are governed by two separate Refund Orders. Refund of VAT Order (SI 58 of 1992) allows a full refund to be claimed of the VAT paid on qualifying medical equipment purchased through voluntary donations and provided to a hospital. Refund of VAT Order (SI 38 of 1995) allows a full refund to be claimed of the VAT paid on research instruments or appliances purchased through voluntary donations by certain institutions (e.g. research institution, university). Further information is available on Revenue.ie - www.revenue.ie/en/vat/repayments-to-unregistered-persons/donated-equipment/index.aspx

Any changes to VAT rates are considered as part of the normal budget process.

The Deputy is also asking about relief from Customs Duty on imports. There are various categories of goods that can be temporarily imported from outside the EU under the temporary admission procedure. If this procedure is used, import duty must be paid on deposit at the time of import but can be reclaimed when the goods are re-exported.

The goods referred to by the Deputy may qualify for temporary admission relief under the following categories if they comply with the relevant conditions.

- temporary admission of goods for examination, analysis or test purposes

- temporary admission of professional equipment

There are rules for each category of goods but there are also general rules published on the Revenue website for the temporary admission procedure regarding:

• goods remaining unchanged

• identification

• security

• time allowed

• import and re-export procedures

• prohibitions and restrictions.

Details of the temporary admission procedure, the conditions associated with different types of goods and the procedure for declaring goods to temporary admission are available at the following link on the Revenue website

www.revenue.ie/en/customs/businesses/temp-admission-exports/index.aspx.

A customs declaration or in some cases an Admission Temporaire / Temporary Admission Carnet “ATA Carnet” can be submitted confirming the reason for temporary admission. An ATA Carnet is an alternative to other procedures for the temporary admission of certain goods and can be used in place of normal Customs documents or as security for import charges. In Ireland, ATA Carnets are issued by the Dublin Chamber of Commerce.

Further information on ATA Carnets is available on the Revenue website - www.revenue.ie/en/customs/businesses/temp-admission-exports/ata-carnets/index.aspx.

Further information on the temporary admission procedure can also be requested from Authorisations and Reliefs Unit at customsreliefs@revenue.ie.