Dáil Éireann Debate, Tuesday - 10 February 2026
407. Deputy Peadar Tóibín asked the Tánaiste and Minister for Finance if there has been a change to the Revenue classification for VAT on children’s clothing (details supplied); when this change happened; and if, given the cost of living crisis for many families; his office would consider returning this decision to the previous ruling. [9793/26]
Amharc ar fhreagraI am advised by Revenue that the VAT rating of goods and services is subject to EU VAT law, with which Irish VAT law is obliged to comply. In general, the EU 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 the categories of goods and services listed in Annex III of the EU VAT Directive, to which Member States are permitted to apply lower VAT rates subject to certain rules.
However, the EU VAT Directive allows that a Member State may be permitted to maintain a historic VAT treatment, subject to strict conditions, including that the scope of its historic treatment is not expanded. On this basis, Ireland retains its long-standing application of the VAT zero rate to the supply of children's clothing not exceeding the size “appropriate to children of average build of 10 years of age”. This application of the zero rate has been set out in legislation for many decades and is currently contained in paragraph 10 of Schedule 2 of the Value-Added Tax Consolidation Act 2010.
I understand from Revenue that, in the practical administration of the measure, the zero rate applies to clothing specifically designed for children in sizes up to and including 32-inch chest, 26-inch waist and 152cm height. Clothing for 11 years of age and over or in excess of these sizes is liable to VAT at the standard rate. Also, in accordance with the legislation, if clothing is not described, labelled, marked or marketed on the basis of age or size then the standard rate of VAT applies.
There has been no change in the legislation or in Revenue’s approach regarding the classification of children’s clothing as the Deputy is asking.
Detailed guidance on the VAT treatment of clothing is published by Revenue and is available on its website at:
www.revenue.ie/en/tax-professionals/tdm/value-added-tax/part03-taxable-transactions-goods-ica-services/Goods/vat-treatment-of-clothing.pdf.
