Tax Code

Tuesday, 21 April 2026

Ceisteanna (267)

Peadar Tóibín

Ceist:

267. Deputy Peadar Tóibín asked the Tánaiste and Minister for Finance if he has conducted an impact assessment on a proposed 0% VAT rate for construction materials to lower the cost of building new homes; his views on whether such a measure would more effectively stimulate supply than the current 9% VAT rate applied only to completed apartments; the estimated cost to the Exchequer of zero-rating these materials for the duration of the current Dáil term; and if he will make a statement on the matter. [17811/26]

Amharc ar fhreagra

Freagraí scríofa

Tánaiste and Minister for Finance

As the Deputy may be aware, under the EU VAT Directive, which Irish VAT law must comply, the VAT rate applied to goods and services must be the standard rate unless they are listed under Annex III of the Directive which allows for a reduced rate of VAT. Construction products and materials are not included in Annex III of the Directive so no reduced rate can be applied to them.

Ireland currently applies the standard rate of VAT of 23% to all construction materials with the exception of ready to pour concrete and concrete blocks per Paragraphs 16(1) and 16 (2) in Schedule 3 of the Value-Added Tax Consolidation Act 2010. By way of a derogation in the Directive, which allows member states to maintain historic VAT treatment for certain goods and services, Ireland applies a 13.5% rate to certain concrete blocks and ready to pour concrete. In applying this rate, there is a condition that these rates are "parked" and must not be lowered below 12%.