Dáil Éireann Debate, Wednesday - 20 May 2026
92. Deputy Ruth Coppinger asked the Tánaiste and Minister for Finance the amount of revenue obtained from VAT on new-build homes; if he will consider a rebate of VAT for those buying their first home and those getting affordable housing; and if he will make a statement on the matter. [38205/26]
View answerThe VAT rating of goods and services is subject to EU VAT law, with which Irish VAT law is obliged to comply. In general, the VAT Directive provides that all goods and services are liable to VAT at the standard rate unless they fall within the categories listed in Annex III of the Directive, in respect of which Member States may apply a lower rate. The “supply of housing, as part of a social policy” is listed in Annex III. The Directive also allows for a Member State’s historic VAT treatment to be maintained under certain strict conditions.
On this basis, Ireland has for many years continued to apply its reduced rate, currently 13.5%, to the supply of new residential property. In line with changes introduced as part of Budget 2026, that will run until 31 December 2030, Ireland now applies its second reduced rate, currently 9%, to the supply and the construction of certain new apartments, as part of a social policy.
The Deputy is asking about the possibility of introducing a rebate of VAT for those buying their first home and those getting affordable housing. It is not possible to introduce such a measure as it would not be compatible with the EU VAT Directive.
I am further informed by Revenue that traders are not required to identify the VAT yield generated from the supply of specific goods and services on their VAT returns.
Therefore, it is not possible to provide an estimate of the VAT yield on new houses and apartments using taxpayer information.
