Dáil Éireann Debate, Wednesday - 5 February 2025
263. Deputy Brian Stanley asked the Minister for Finance to consider changing the VAT rate for boarding kennels and catteries as the rate is currently 23%, whereas the rate for groomers and veterinary work is 13.5%; and if he will make a statement on the matter. [2582/25]
Amharc ar fhreagraThe VAT rating of goods and services is subject to the requirements of EU VAT law, with which Irish VAT law complies. In general, the EU VAT Directive provides that all goods and services are liable to VAT at the standard rate, 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.
The provision of boarding kennels and catteries and the services of groomers are not included in Annex III and as such these services are subject to the standard rate of VAT, currently 23%. There is no discretion under the Directive for Ireland to apply a reduced rate of VAT to these services.
However, the Directive allows for a Member State’s historic VAT treatment to be maintained under certain strict conditions. On this basis, Ireland has retained its long-standing application of its reduced rate, currently 13.5%, to the supply of services by a veterinary surgeon in the course of their profession. Where a veterinary surgeon carries out a grooming service as part of a veterinary procedure, such as treating an illness or disease, the grooming is considered part of the veterinary procedure and the entire procedure is liable to VAT at the reduced rate. Where a veterinary surgeon provides a grooming service as a supply that is distinct from a veterinary procedure, the service is liable to VAT at the standard rate of 23%.
