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EW Revenue guidance concerning the rate of VAT that applies to food supplements, will apply the 23% VAT rate instead of zero rate to most food supplements with effect from March 1, 2019, Minister of State Michael D’Arcy told the Dáil.

However, he said it should be noted that human oral medicines, including certain folic acid and other vitamin and mineral products licensed by the Health Products Regulatory Association (HPRA), will continue to apply at the zero rate of VAT.

It was 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, he said.

The Minister of State was replying to Opposition deputies who said the increase on VAT on food supplements to 23% was shocking for huge numbers of people who need and rely on food supplements and vitamins.

‘The operation of the current concession has become problematic because of the efforts by some in the industry to exploit the concession to extend the zero rating beyond the scope permitted by Revenue,’ he said. ‘Some businesses had challenged Revenue guidance and Revenue decisions on the VAT rating of products, giving rise to concerns about compliance within the industry and unfair competition between compliant and non-compliant businesses.’