70. Deputy Pádraig Mac Lochlainn asked the Tánaiste and Minister for Finance if he is considering a VAT reduction for the sale of products made by Irish craft workers. [52209/26]

The VAT rating of goods and services is subject to EU VAT law, 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 unless they are exempt from VAT or fall within Annex III of the Directive, in which case lower VAT rates may apply subject to certain rules. Currently Ireland has a standard VAT rate of 23% and two reduced rates of 13.5% and 9%.

Article 98 of the Directive provides that Member States may apply a maximum of two reduced rates no less than 5% to the categories listed (with a cap of 24 categories) in Annex III. Annex III does not specifically include supplies of craft items. Consequently, Ireland cannot apply a reduced rate for the sale of products made by craft workers.