News

VAT on food supplements

 

This week the Minster for Finance set out plans to examine the policy for taxation of food supplements.

The Revenue have confirmed that the VAT on food supplements will remain unchanged until November the 1st this year.

Due to increasing concerns within the food supplement industry that their would be confusion as to which items would achieve a 0% rate and those that will be a standard rate.

Revenue undertook an extensive review on VAT for food supplements in 2018 and issued a guidance in December 2018 which is due to come into effect on March 1st 2019.

The Minister for finance wrote to the Chairperson of the Revenue Commissioners to outline that during the committee stage debate that he gave a commitment to address the matter by means of a specific paper to the tax strategy group. He also stated He will put in place a process that will conclude in the TSG papers to examine some of the policy choices that could be available.

The Minister went on saying To ensure that this policy review will be effective He proposed to issue a public consultation seeking engagement from all partied on the issue and to consilt with the Minister for health on the matter.

Revenue has confirmed that it will delay implementation of its new guidance until November 1st 2019.