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LAST UPDATE | 26 Feb 2019
THE VAT RATE on food supplements will remain unchanged until 1 November 2019, it has been confirmed.
A 23% VAT rate, the standard rate, on food supplements was due to kick in on Friday, 1 March.
More than 60,000 people have signed a petition urging the government not to follow through with the plans.
The idea to add the tax has been criticised by a number of opposition parties including Sinn Féin and Labour.
There has been a mixed reaction from healthcare professionals as some products would have been exempted and continued to enjoy a 0% VAT rate. The exemptions included folic acid and other vitamins and minerals licenced by the Health Products Regulatory Authority.
In a statement released today Revenue noted that it undertook a comprehensive review on the VAT treatment of food supplements “following growing concerns of industry representative bodies about the difficulties” in rating such products, before announcing the changes.
On Monday, the Minister for Finance and Public Expenditure Paschal Donohoe wrote to Niall Cody, Chairman of the Revenue Commissioners, outlining that in the course of the Committee Stage debate on the Finance Bill last November he “gave a commitment to address the matter by means of a specific paper to the tax strategy group during the summer period”.
Revenue noted that, in the letter, Donohoe proposed 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 order to “ensure that this policy review will be effective”.
Donohoe added that he was “of the view that this approach provides a way of bringing forward the necessary analysis and information to facilitate my consideration of options regarding the legislative provisions concerning the VAT treatment of products in this sector”.
A spokesperson for Revenue said the organisation was delaying implementation of the increased rate until November “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″.
Jobs at risk
The Irish Health Trade Association (IHTA) has said it “sincerely welcomes” the decision to defer the proposal.
“The Minister has made the right call on this urgent issue and we look forward to engaging constructively with him in the months ahead to seek a permanent solution,” a spokesperson said.
The organisation has warned that the proposed rate would threaten 250 local businesses with closure and put 1,800 jobs at risk.
“We are in a very dangerous position in our industry with imminent job losses and the people reliant on supplements having to face the harsh reality of a 23% increase,” IHTA spokesman Alan Martin said.
For the past 40 years, food supplements have been sold at the 0% rate, including products such as Vitamin C, Omega 3, Probiotics, Lutein and Glucosamine.
“The 23% VAT rate needs to be urgently revisited by the Minister for Finance as it will have a major effect on the old, the elderly and the sick,” Martin said.
With reporting by Garreth MacNamee
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Result!
Thankfully. Some good news today.
@Ciaran Fairley: So Revenue doesn’t rule Ireland after all.We do have a say in our country.
@Billy McNamara: But its interesting how direct government interference can respond to particular interest groups but if your child is awaiting help your at the end of a very long que
No doubt the VAT hike is supported by big pharmaceutical companies who have a lot to gain. The less people that can afford vitamins the sicker they will become over time and in turn become more reliant on the health service.
@Tony Doran: This message is supported by Big Tinfoil anyway.
@Tony Doran: you know revenue get the VAT ya? They literally have nothing to gain
@Fergus Sheahan: He is saying that the pharmaceutical would get more customers as a result of more people not being able to afford health supplements due to the vat
@George O Neill: ya everything is a massive conspiracy run by underground lizards and B8g Pharma
@Tony Doran: Buying vitamins isn’t really gonna help you stay healthy despite what the supplement industry would have you believe, yet nobody ever seems to give out about their motives… just Big Pharma.
Funny, that.
@Tony Doran: except the flaw in your argument is that the same companies make both and they have people convinced thst they need supplements when in actual fact, the vast majority don’t.
@Tony Doran: Thanks.. needed a laugh after today.
Election near. …The blues fear is in the air..
@Willy:
@Willy: Election is nailed on for May as they are still hiding the new property tax rates
@Willy: Must be. Also explains Mehole Martin suddenly pretending to be an opposition party leader all of a sudden after playing along with FG for years.
My impression is that most of this vitamins and supplements are unnecessary in most cases. The Health Products Regulatory Authority would look at the ones that are truly necessary for medical reasons. Those are the ones that we should subvent with our taxes. The rest can be taxed high. Most of you are wasting money in products that you do not need. A normal diet will cover all your vitamins and minerals required. You are only making your urine very expensive.
@Jo Buckley: spot on
@Jo Buckley: many people can’t eat a “normal diet” due to food allergies, many people can’t get sufficient nutrients from their food due to medication and food allergies.
@Jo Buckley: The vitamins and supplements a person needs to take is dictated by the health/condition they find themselves in for example a lot of people with joint pain and various other ailments have found CBD oil to be very effective
@Sirius: if there is a true clinical need it should be subvented by the Irish state. It means that we, the Irish citizens who pay taxes, will help paying for those with clinical needs. Remember that, despite what you usually read here, we are a very generous society. There is nothing free and seldom you see anyone, individuals or groups, thanking the hard working Irish taxpayer.
Also I do not want to support unnecessary items. There are people with food allergies that are present only in their minds, there is no clinical evidence to support them. Why should we be paying for this? This is not popular but it is a fact.
@Jo Buckley: I’m not sure why you’re talking about people with food allergies that are all in their heads? I’m talking about people with actual genuine need to supplement their diet being affected by an increase in prices.
@Sirius: Not many people have food allergies. A considerable amount of people *think* that they have food allergies, ignoring the impact of takeaways and drink, and blame bloating or sick stomachs on bread or gluten or whatever.
Here’s some data: 5% rate, medically proven, in the UK, the nearest match to us…https://waojournal.biomedcentral.com/articles/10.1186/1939-4551-6-21
@George Salter: that’s fair enough but, as I’ve said already, I’m talking about people with genuine real diagnosed food allergies, like myself, why should we be punished further? Why should people who cannot eat a regular diet and get all the nutrients from their food, like myself, be punished further? I don’t think it’s possible for anyone here to categorically state that the majority of people who are taking supplements don’t actually need them.
@Jo Buckley: Most of the synetically-produced vitamins are 10% effective or thereabouts. Folic Acid is made synthetically and it’s a poorer form of the natural form, folate. Although you can get adequate amounts of some vitamins, eg vitamin C, from your diet, a lot of the vitamins, minerals and co-factors are missing from modern day food due to selective breeding, soil depletion, unripe harvesting, extended storage time and improper cooking like boiling or microwaving (which does a great job at maintaining broccoli’s chlorophyll but destroys most of its vitamins).
@Jo Buckley: @Jo Buckley: If we were living in a natural, as opposed to a man-made, world, we would probably be fine with sub-optimum food, however the truth is that the air, EMF and water pollution, along with the chemicals in our cleaning and hygiene products pose a constant and considerable threat to our bodies that NOT taking quality supplements is irresponsible.
@Sirius: may i ask…and you dont have to answer. .what is your allergy? ..if you have suffered as a child/ adult and dont want to say i respect your decision. ..just curious.
@Jo Buckley: does everyone not realise that these supplements are scientifically proven not to work. There is a list of the proven and unproven claims. E.g probiotics do not work.
Link. http://ec.europa.eu/food/safety/labelling_nutrition/claims/register/public/?event=register.home
It’s a bit unusual everyone saying I need them because of diet and health when the scientists have proven they don’t work it’s more likely that u think they work therefore u get the placebo effect.
Fantastic! Sensible decision at last
Delighted with this outcome and hope we haven’t to fight again in November
@Lettie Mc Carthy: oh yes you will. This is just a pause, not a cessation. ..
You only have to look at the recent Lancet report telling everyone we need to stop eating meat , sponsored by the likes of Monsanto to see the influence drug / chemical companies have .
If Revenue want to up their income, increase the sugar tax and on fast food .
Great news, what a relief!
Good move #irlgov #revenue
There is 23% VAT on smoke alarms, more Important than vitamins
For those who think this is a ploy by the big pharma companies, this is an interesting read. Don’t forget big herba is a very lucrative industry but far less regulated than pharma
https://pharma.elsevier.com/pharma-rd/link-big-pharma-supplement-industry/
@Sara McS: big pharma regulated lol they provide their own trials mostly and have been known to suppress negative data for example D.E.S, Thalidomide are just a couple and a lot of vaccine data has proven to have been suppressed or ignored look up the vaccine courts in the US
@George O Neill: Provide their own trials? They fund the trials (not always), but the trials are *heavily* regulated. Drug dev costs an absolute bomb for a reason…
Suppression of negative data i.e. unpublished results does happen and it’s disgraceful, but steps have been taken to cut it out across the board, and regardless, unless there is evidence for safety and benefit vs. placebo then a healthcare authority like the HPRA isn’t going to grant a license, that’s how it is.
@George O Neill: I love to watch people confidentally talk about things they know nothing about.
Sure if we have a good summer this year the sun protecter will get 23% hike as well ha ha great country to live in
What about me gains ?
Jo Buckley, Daniel Sheehan, a few points. unfortunately food does not contain the necessary vitamins and minerals nowadays.
This is due to modern farming practices such as the use of toxic pesticides, soil depletion, treatment of food for transport, additives, further treatment of “fresh food” and when it comes to meat the horrors are too numerous to mention. I suggest you educate yourself on the matter before you make any sweeping statements. After having suffered many health deficits, I’ve largely improved my health thanks to supplements, when ordinary medicine had failed me. I’m not alone in this, which is why there has been an outcry. Maybe open your eyes and read the books “Eat your heart out” and “not on the label” by Felicity Lawrence.
@Marianne Creyf: out of curiosity, what kind of supplements are you referrring to? theres a big difference if youre taking Lysene, which is a good idea, or Multivitamins like ACE which have been shown to cause more harm than good. while it is true for some processed foods that they dont contain nearly as many nutrients as youd expect, yoi can always opt to buy fresh produce which will not only cover your needs in nutrients and minerals, its also much more efficient than the artificial alrernative. plus you reduce your carbon footprint.
Why do people take vitamin supplements ? Do what your mother said eat your veg and fruit then there is no need for a tablet…..very expensive urine.
Very few if any of the supplements work there is ample amount of evidence provided by scientists to show they don’t work.
It’s collated by the EU here
Link http://ec.europa.eu/food/safety/labelling_nutrition/claims/register/public/?event=register.home
If any of the health claims made by the producers of these products are true then the producers can advertise/market this claim (ie flora reduces cholesterol is proven) if not proven then they can’t it would be illegal to make a claim without the proof.
Tax the unproven and dont tax the proven. If you have an ailment then u should probably get a prescription for a product that is proven to work against ur ailment from ur trained doctor.
These unproven supplements do not work for diet supplementing or any health matters.
Surely we make our own vitamins in Ireland?
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