Dáil Éireann Debate, Tuesday - 24 February 2026
399. Deputy Emer Currie asked the Tánaiste and Minister for Finance if his Department has conducted any assessment of introducing a VAT credit model for specific sectors to allow for a capped reduction in VAT payable as a business support or measure to prevent market failure. [15129/26]
Amharc ar fhreagraI am advised by Revenue that the VAT treatment 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 are exempt from VAT or fall within Annex III of the Directive, in which case lower VAT rates may apply subject to certain rules.
I understand from the Revenue Commissioners that VAT-registered businesses are generally entitled to recover any VAT they incur on goods and services used in the course of their taxable business, subject to the normal rules on deductibility.
Therefore, generally the VAT incurred on goods and services used in the course of their taxable business is a VAT credit, i.e. a tax credit which VAT-registered businesses can apply against VAT liabilities.
It is not possible to reduce VAT liability as a business support.
