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Last ditch attempt to stop 23% VAT being added to vitamins and supplements

Food supplements have been treated as foods for VAT purposes and had availed of the concessionary 0% rate applicable to food.

OVER 60,000 PEOPLE have signed a petition urging the government not to place 23% VAT on vitamin and mineral supplements on 1 March as planned, but the opposition comes as some medics question how useful such products are. 

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. However, it emerged late last year that the 23% rate would be applied to these products come 1 March 2019.

The idea to add the tax has been criticised by a number of opposition parties – including Sinn Féin and Labour. 

However, there has been a mixed reaction from health professionals particularly as there will be a list of products which will be exempted from change and continue to enjoy a 0% VAT rate.

The exemptions include folic acid and other vitamins and minerals licenced by the Health Products Regulatory Authority.

Dr Mary Rose Sweeney, associate professor in the School of Nursing and Human Sciences at Dublin City University, has conducted significant research on supplements and vitamins. She has also written extensively about folic acid and the level of intake in the Republic of Ireland. 

She explains that most people in Ireland don’t need to take supplements but notes there are a number of exceptions – the most obvious being that folic acid recommended for all women who could become pregnant.

“Folic acid supplements are not expensive so a 23% vat increase is unlikely to be a big deterrent for the majority of those who should take them and a number of folic acid products regulated by the HPRA are exempt from the VAT so that means women can still buy these products that are licensed, without the added VAT,” she explains. 

“Other exceptions include iron, which is often recommended by doctors during pregnancy, or for those on vegetarian and vegan diets; vitamin B12 required by those on a vegan diet; and vitamin D drops which are recommended for infants in the first year of life.

“Outside of these exceptions above – which are recommended – supplements should only be taken on the advice of a health care professional after an assessment and diagnosis of deficiency and intakes should be at recommended intakes only – not the mega doses available in so called ‘health stores’, pharmacies or supermarkets.”

However, the Irish Health Trade Association (IHTA) claims the proposed VAT rate puts nearly 2,000 jobs in jeopardy. 

IHTA spokesman Alan Martin said the decision needs to be reversed.

We urgently need the Minister to intervene and reverse a recent decision by the Revenue Commissioners to introduce a 23% VAT rate on food supplements which will 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.

‘’Last year the government introduced a so-called ‘fat tax’, which saw a levy introduced on sugary drinks. 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.”

Health Stores Ireland, the association for health food stores and the Irish Pharmacy Union have also come out against the VAT increase.

Retail Excellence Ireland is also calling on the government to review the proposed VAT hike. It said such a move will have a serious impact on consumers who rely on supplements in order to maintain their health.

Junior finance minister Michael D’Arcy told the Seanad earlier this month that there had been confusion over which products would face the new VAT rate. 

He explained: “It should be noted that human oral medicines, including certain folic acid and other vitamin and mineral products licensed by the Health Products Regulatory Authority, will continue to apply at the zero rate of VAT. It is possible to retain these products at the zero rate because they qualify as oral medicines, which are charged to VAT at the zero rate in Ireland under an historical derogation to EU VAT law. Infant foods will also continue to be zero rated.”

The latest advisory from Revenue also confirms this point. It reads: “Human oral medicines that are licenced / authorised by the HPRA are zero rated. These products are listed on the HPRA website and have Product Authorisation (‘PA’) numbers on their label. Certain folic acid and other vitamin and mineral products for oral human consumption which are licenced / authorised by the HPRA and have PA numbers on their label are zero rated.”

The IHTA is holding a last-ditch meeting in Dublin today to convince the government to reverse the decision to implement the tax. 

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    Mute Niall Ó Cofaigh
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    May 25th 2022, 12:49 PM

    I have been trying to understand and today I think it can be summed up that people like Boris Johnson see themselves as part of the ruling class and as such exempt from the rules that apply to the people they rule. This explains why they do not see any inconsistencies between their parties and the activities of the people they rule. It is total arrogance

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    Mute Joe Johnson
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    May 25th 2022, 4:39 PM

    @Niall Ó Cofaigh: Just like Donald Trump , Bojo doesn’t know when he’s a beaten man.

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    Mute Great White Hope
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    May 25th 2022, 7:42 AM

    Date of publication decided by No 10? Why?

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    Mute Fergus Jones
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    May 25th 2022, 8:59 AM

    @Great White Hope: Interesting as Johnson said the meeting with Gray was to decide the timing of the release of the report and not to get her to sweep all of the parties and bottles under the carpet

    92
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    Mute Ian James Burgess
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    May 25th 2022, 1:59 PM

    @Great White Hope: because they have next week off

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    Mute Paul Mcnevin
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    May 25th 2022, 5:31 PM

    @Great White Hope: Summer recess.

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    Mute Donal Desmond
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    May 25th 2022, 1:36 PM

    Leo must be on his bended knees thanking Boris for deflecting the Irish media concerning rule braking. Sue grays report given in months. Garda criminal investigation into Leo still waiting for DPP to respond. Suppose like the missing millions in Templemore and the missing mobile phones and laptops of two ex garda commissioners…we hold our breath.

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    Mute Denis Ryan
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    May 25th 2022, 2:21 PM

    @Donal Desmond: Any chance you would stick to the topic that the article is about.

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    Mute John Johnes
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    May 25th 2022, 4:40 PM

    @Donal Desmond: that lying , hypocrite snake is delighted indeed.

    leo the leaking tap did a far greater totally corrupt crime than Boris and yet Boris is being crucified.

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    Mute JusticeForJoe
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    May 25th 2022, 4:48 PM

    @Denis Ryan: You ok there, Denis? Doing a bit of Comment-Policing? It was a fair enough segue, in my opinion. Usually, when articles about our neighbours’ government are posted here, we tend to compare them with our lot. It’s quite normal and is not against any rules.

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    Mute Frankie J
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    May 25th 2022, 4:51 PM

    @John Johnes: are you a child? It looks like a child wrote that comment.

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    Mute Donal Desmond
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    May 25th 2022, 6:18 PM

    @Denis Ryan: Well it took the Attorney General to get Varadkar off the hook….Seems Boris does not have the same influence…

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    Mute Denis Ryan
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    May 25th 2022, 8:14 PM

    @JusticeForJoe: “any chance” is comment policing?

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    Mute E.J. Murray
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    May 25th 2022, 1:14 PM

    He apologises on a regular basis but it makes not a blind bit of difference to anyone. Perhaps they should have a ten strike apology system, and the tenth meaningless apology gets someone kicked out?

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    Mute Ciaran Dunne
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    May 25th 2022, 9:00 AM

    It’s a tainted report even before it’s published IMO.

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    Mute Ronnie Smith
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    May 25th 2022, 9:48 AM

    After her meeting with Boris I suspect their will be a few grey areas in the report

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    Mute Stephen Carslake
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    May 25th 2022, 1:11 PM

    Meehole and Leo the liar have sent a message to Boris.
    “”Boris just tell them lessons will be learned^^ Its worked for us for years

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    Mute Maurice O Neill
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    May 25th 2022, 11:58 AM

    Nothing to see here . Boris is one of the strongest leaders in Europe . We had plenty of party’s in Ireland during lockdown and nothing was done about it

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    Mute Joseph Blocks
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    May 25th 2022, 1:12 PM

    @Maurice O Neill: I certainly didn’t anyway, so you must be speaking for yourself. Maybe you should go report yourself to the Gardaí, good lad.

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    Mute Great White Hope
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    May 25th 2022, 1:59 PM

    @Maurice O Neill: you’re a mighty man for stirring the pot

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    Mute E.J. Murray
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    May 25th 2022, 3:11 PM

    @Maurice O Neill: — All the drink at all those parties must have addled your brain, you should get checked out. There could also be mind numbing chemicals in your water supply.

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    Mute Liam MacSuibhne
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    May 25th 2022, 3:53 PM

    @Maurice O Neill: A bit strange aren’t you?

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    Mute Liam MacSuibhne
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    May 25th 2022, 3:54 PM

    @Liam MacSuibhne: take that back. Totally strange. Maybe talk to someone? Yikes

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    Mute Liam MacSuibhne
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    May 25th 2022, 3:56 PM

    @Maurice O Neill: and it’s ‘parties’, the plural.
    And yes, plenty was done about it. People lots their jobs, including an EU Commussioner.
    Just go away Maurice like a good lad.

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    Mute Liam MacSuibhne
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    May 25th 2022, 3:56 PM

    @Liam MacSuibhne: people lost* their jobs

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    Mute Olan Marten
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    May 25th 2022, 6:37 PM

    @Maurice O Neill: according to Boris the UK has never a part of Europe. So your statement is incorrect. He is the leader of a large island that he doesn’t fully control, the UK as an entity is threadbare, if Scotland goes it doesn’t exist.

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    Mute John O Mahony
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    May 25th 2022, 2:20 PM

    Another British government cover up

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    Mute Niall O'Reilly
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    May 25th 2022, 1:58 PM

    Resign Resign Resign!

    47
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    Mute Seymour business
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    May 25th 2022, 11:58 AM

    Nothing like a four day bank Holiday and a right Royal pi$$ up, to sweep the decks.

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    Mute Paul Mcnevin
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    May 25th 2022, 1:24 PM

    It’s fair to say that this report is shady from the outset. In fact as many as 50 shades from Gray.

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    Mute Richard Starling
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    May 25th 2022, 6:45 PM

    Boris won’t resign. He has no honour or integrity and firmly believe the rule of law doesn’t apply to him.

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    Mute Paul Dolan
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    May 25th 2022, 5:57 PM

    I heard Bertie Ahern is advising him

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    Mute Carm(Orange Vampire)
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    May 25th 2022, 6:01 PM

    “Johnson believes he should remain as PM”. Well of course he does, he is too nrcissistic to think otherwise. (I wasn’t allowed to spell the word as it came up as toxic, nar…

    32
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    Mute Tim Brennan
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    May 25th 2022, 6:14 PM

    Johnson and his ilke live in a world of privilege and entitlement.
    The Brits vote for the protection of their status and privilege and they could not care a wit what Boris does.
    Boris will always be one step away from imploding as he can’t help his arrogance bursting forth

    22
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    Mute Brendan Glynn
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    May 25th 2022, 5:55 PM

    Boris has destroyed any credibility that his Party may have had – total arrogance – typical of Tories

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    Mute Paul Duffy
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    May 25th 2022, 4:32 PM

    GET BREXIT DONE

    12
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    Mute Jimmy Chickens
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    May 25th 2022, 5:04 PM

    Curious as to what drink he is holding up. Is that a can of Coke? Tanora maybe? The naughty boy

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    Mute Alex Marquis
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    May 25th 2022, 6:00 PM

    Oh my God that’s so unexpected! I really expected him to admit that he should go.

    9
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    Mute Nicholas O'Halloran
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    May 25th 2022, 5:17 PM

    Good man Boris

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    Mute Fergus Jones
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    May 26th 2022, 8:36 AM

    I’d like to know when they broke his kids swing at 3am during covid , how did they say it happened ?

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