378. Deputy Barry Heneghan asked the Tánaiste and Minister for Finance whether he will review the application of the 23% VAT rate to medical devices and essential medical equipment, particularly where such products are required by people to manage a medical condition or disability; whether consideration will be given to applying a reduced VAT rate to eligible medical devices in order to reduce the financial burden on patients; and if he will make a statement on the matter. [64369/26]

As the Deputy will be aware, it is long-established practice that the Minister for Finance does not comment in advance of the Budget, on any tax matters that might be the subject of Budget decisions.

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 persons (excluding mechanically propelled road vehicles), orthopaedic appliances, surgical belts, trusses, deaf aids, artificial limbs, 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.