Dáil Éireann Debate, Tuesday - 17 February 2026
473. Deputy Paul McAuliffe asked the Tánaiste and Minister for Finance the progress to date designating psychotherapy and counselling services as VAT exempt; the costings if this was to take place; and if he will make a statement on the matter. [11894/26]
Amharc ar fhreagraAs the Deputy will be aware, the VAT rating of goods and services is subject to the terms of the EU VAT Directive which Irish VAT law must comply. Under Irish legislation the provision of medical care services by recognised medical professionals are exempt from VAT. This includes health professionals registered under the Medical Practitioners Act 2007, the Nurses and Midwives Act 2011, and those engaged in a regulated profession designated under Section 4 of the Health and Social Care Professionals Act 2005.
Statutory Instrument No. 170 of 2018 (Health and Social Care Professionals Act 2005 (Regulations 2018)) of 2 July 2018 designates psychotherapists and counsellors as a regulated profession and establishes the Counsellors and Psychotherapists Registration Board. Professional counselling and psychotherapy services provided by persons registered by this Board are exempt from VAT from the date of their registration. Where such services are supplied by a person who is not so registered (including where the services are provided by a person in advance of their being so registered) then the supply of the service is liable to the reduced rate of VAT, currently 13.5%.
As the necessary legislation has already been passed the VAT exemption in question will apply from the date of registration by the Counsellors and Psychotherapists Registration Board.
On 27 February 2019, the establishment of and appointment of members to the Counsellors and Psychotherapists Registration Board was confirmed under the Health and Social Care Professionals Act 2005 (amended) to regulate the professions of Counsellors and Psychotherapists. The thirteen members of the Counsellors and Psychotherapists Registration Board were appointed with effect from 25 February 2019.
Questions on the establishment of the Counsellors and Psychotherapists Registration Board and their progress in opening their register are a matter for my colleague, the Minister for Health.
I am advised 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 costings of providing this exemption to the specific services referred to by the Deputy.
