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Revenue delays planned VAT hike on food supplements

Revenue has announced that it's delaying the planned hiking of the VAT rate on food supplements. ...
Stephen McNeice
Stephen McNeice

17.41 26 Feb 2019


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Revenue delays planned VAT hik...

Revenue delays planned VAT hike on food supplements

Stephen McNeice
Stephen McNeice

17.41 26 Feb 2019


Share this article


Revenue has announced that it's delaying the planned hiking of the VAT rate on food supplements.

Officials announced in December last year that 23% VAT would be applied on all food supplements from March 1st 2019.

It would represent a 23% increase, as there is currently no VAT rate on food supplements sold in Ireland.

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The proposed hike has faced opposition from a number of political parties.

Labour leader Brendan Howlin suggested the decision "threatens the jobs and livelihoods of those involved in health food stores".

The Irish Health Trade Association (IHTA), meanwhile, called on the Revenue Commissioners and the Government to defer the decision.

Other opponents of the move said it could affect people's health and wellbeing.

A delay's now been announced y Revenue, and the rate will remain unchanged until November 1st.

It comes after the Finance Minister announced plans to examine "policy and legislative options" for taxing food supplements.

Food supplements VAT review

Paschal Donohoe said: "To ensure that this policy review will be effective, I propose to issue a public consultation seeking engagement from all parties on the issue and to consult with my colleague, the Minister for Health, to ascertain his views on the use of food supplements”.

In a statement this afternoon, Revenue said: "In support of the Minister’s proposed process of review, and to allow time for the enactment of any legislative changes (if any) as a result thereof in Budget 2020, Revenue has confirmed to Minister Donohoe that it will delay implementation of its new guidance until 1 November 2019."

Health shop owner Rob Winnet, from Dungarvan in Waterford, said this delay will give the Health Stores Ireland group time to fight their case.

He explained: "We were promised in the deliberations of the last budget that this matter would be reviewed by the tax strategy group.

"We'll be able to make our case not just for a postponement, but a zero rate VAT going forward.

"If this gives us the opportunity to make our case, than we would be absolutely thrilled."

Main image: People Before Profit TD Gino Kenny and campaigners outside the gates of Leinster House, protesting against the increase of the VAT on food supplements. Photo: Leah Farrell/RollingNews.ie

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