Search

20/10/2021

Plan to impose 23% VAT rate on food supplements postponed by Revenue

New VAT rate has been put off until November 1 following intervention of Minister for Finance

Carlow Carlow Carlow

The Revenue Commissioners has delayed the introduction of a VAT rate of 23% on food supplements until November 1 which has been described locally as "good news" for people who rely on the vital aids. 

Last December, it was announced that the 23% VAT rate would be applied on all food supplements from this coming Friday, March 1.

Food supplements have until now been treated as foods for VAT purposes, availing of the concessionary 0% rate applicable to foods in Ireland for more than 40 years.

Carlow Senator, Jennifer Murnane O'Connor, hit out at the plans to tax health supplements and highlighted a local case where a woman with Lyme disease would no longer be able to afford them if they were taxed.

However, the new VAT rate has been put off until November 1 following the intervention of the Minister for Finance, Paschal Donohue. 

Senator Murnane O'Connor, said: "Good news for everyone who relies on these vital aids to live normal lives."

A spokesman for Revenue said in light of Minister Donohoe setting out plans to examine the policy and legislative options for the taxation of food supplements, "VAT treatment of food supplements will remain unchanged until November 1 2019".

Buy the e-paper of the Donegal Democrat, Donegal People's Press, Donegal Post and Inish Times here for instant access to Donegal's premier news titles.

Keep up with the latest news from Donegal with our daily newsletter featuring the most important stories of the day delivered to your inbox every evening at 5pm.