Dáil Éireann Debate, Tuesday - 22 October 2024
235. Deputy Carol Nolan asked the Minister for Finance to confirm that the VAT applicable to an NCT test and retest is 23%; if he can reduce this VAT rate, and if he will do so; and if he will make a statement on the matter. [42669/24]
View answerI confirm that the National Car Testing (NCT) service and retesting service are liable to VAT at the standard rate, currently 23%.
I am advised by Revenue that 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.
NCT test and retest services do not come within the services listed in Annex III, so the Directive requires that Member States apply the standard rate of VAT to such supplies. There is no discretion to apply a lower rate of VAT to the services in question.
