Dáil Éireann Debate, Tuesday - 14 October 2025
346. Deputy John Paul O'Shea asked the Minister for Finance the Government's position on VAT for donations of unsold products from businesses to recognised charities; if his Department has plans to review this position in line with other EU member states (Belgium, Italy, France) receiving a derogation for the donation of unsold goods under the EU VAT legislation; and if he will make a statement on the matter. [54961/25]
View answerThe VAT treatment of goods and services is subject to EU VAT law, with which Irish VAT law is obliged to comply. In general, the supply by a business of goods and services is subject to VAT, unless EU VAT law specifically permits otherwise.
The EU VAT Directive provides that the disposal by a taxable person of business goods free of charge is to be treated as VAT-able supply if the input VAT on those goods (or component parts) was deductible. Irish VAT law reflects the EU Directive and generally requires that businesses account for VAT on gifted or donated goods as a “self-supply” where they have claimed input VAT credit.
The EU VAT Directive specifically provides that gifts of small value made by a taxable person are not subject to VAT. Irish legislation has defined a small gift as one with a value less than twenty euro (excluding VAT). This means that in Ireland, no VAT is charged where the cost to a business of the gift or donation does not exceed this amount. However, where a fee is charged or if the cost to the donor exceeds twenty euro, the gift or donation will be liable to VAT at the rate appropriate to that good. Where the gift or donation forms part of a series to the same person over a period of time then the gifts or donations are liable to VAT.
I am not in a position to comment on VAT treatments that may apply in other Member States. It should be noted that historical derogations and standstill provisions that are applied by one Member State cannot be mirrored by another Member State.
