Dáil Éireann Debate, Thursday - 17 October 2024
176. Deputy Ged Nash asked the Minister for Finance if VAT at the standard rate will be applied to plant based milk substitutes such as those derived from oats, soya, coconut and almond; the reason for this; the measures that will be taken to reduce the impact on people allergic to diary; and if he will make a statement on the matter. [42142/24]
View answerIn general, plant-based drinks are subject to VAT at the standard rate, which is currently 23%. Finance Bill 2024 proposes an amendment to the legislation in this area in order to bring some additional clarity but, importantly, the amendment will not make any change to current taxation of any products.
The Deputy is asking about the VAT rate for milk alternatives. Under VAT legislation, milk is subject to VAT at the zero rate and Revenue also allow milk alternatives to be zero-rated. Therefore, products such as oat milk, almond milk, soya milk and coconut milk are zero-rated as milk alternatives, and this approach will continue.
