MOUNTAIN

With a new VAT refund scheme for mountain rescue teams in VAT REFUND Northern operational from 1 April, teams south of the border are still left with the HIGHLIGHTS 23 per cent rate payable on the necessary equipment to carry NORTH-SOUTH out their life-saving work. And this is despite repeated calls for VAT harmonisation across all DIVIDE emergency rescue services.

Mountain rescue groups in the north can now receive a refund on the tax they pay for their own equipment.

ountain rescue is a very ‘taxing’ task, both Communication and Transport to make a formal presentation on physically and emotionally. The 12 volunteer VAT and other issues impacting negatively on voluntary Mountain mountain rescue teams across Ireland pay VAT Rescue teams. on all life-saving equipment – an obvious anomaly “The joint committee listened intently and asked pertinent whenM contrasted with marine where a VAT questions – subsequently a special one-off grant of €200,000 for exemption prevails. MRI to purchase new vehicles and equipment was announced Now, with new measures allowing mountain rescue groups on 26 June,” he recalls. in the north to receive a refund on the tax they pay for their own equipment, teams in the south are left feeling aggrieved at the NO TANGIBLE PROGRESS lack of action on this issue for their volunteers. Christie says that whilst this grant aid was welcome, he points “It would appear that politically, UK hands are not as tightly out that given the VAT anomaly, this amounted to €154,000 net, tied as Irish hands,” notes Gerry Christie, PRO with Mountain spread across 10 teams. “It’s currently being used to finance a Rescue Ireland (MRI). “Strangely if a walker breaks a leg on limited number of vehicles for some teams. Sadly otherwise there Cuilcagh Mountain – the highest point of both Fermanagh and has been no tangible progress south of the border. Cavan – the rescue team responding from the south will have to “On the wider European front, all MEP candidates were shoulder the VAT burden as well as the casualty. The team from approached prior to the EU elections and all were supportive – the north will be relieved of the VAT burden.” many contacted the Department of Finance but no progress was Christie’s comments follow in the wake of a concerted effort apparently possible on the domestic front. Progress is awaited at from MRI in urging all MEP candidates in last year’s European EU level.” elections to actively work towards and achieve a VAT equity and Christie argues that there is a public interest in exempting harmonisation on rescue equipment in Europe. certain activities from VAT – specifically land-based search and On 14 May 2014 Gerry Christie was part of a delegation rescue activities. The EU VAT Directive (2006/112/EC) currently from MRI invited by the Oireachtas Joint Committee on exempts a number of activities carried out in the public interest MOUNTAIN RESCUE

PROPOSAL’S CONSIDERATIONS According to Gerry Christie, PRO with Mountain Rescue Ireland (MRI), the following considerations lend support to this proposal: 1. Mountain rescue services clearly generate a public benefit. VAT exemption would be a way for the EU to demonstrate its practical support for such organisations and for the benefit of the general public. 2. Such services assist in promoting the health and prolong the life of citizens in the EU. 3. In many EU member states, these services are partly, largely or wholly funded by voluntary subscription. Volunteered donations may be significantly weaker where there’s a perception that a proportion of the contribution must be subsequently surrendered by the charity as taxation, which can be seen as a double taxation. 4. These essential services underpin tourist and leisure activities enjoyed by citizens and therefore are a direct economic benefit to member states. 5. VAT exemption will not generate competitive advantage as voluntary services are obviously non-commercial. 6. Sea rescue services currently enjoy a wide-ranging VAT exemption. The proposed amendment would include all voluntary rescue organisations in the scope of the exemption and would The 12 volunteer mountain rescue teams across Ireland pay VAT harmonise and simplify the EU Directive. on all life-saving equipment. 7. There is much public good will and support for mountain rescue and also for this proposed VAT amelioration. by means of Article 132; a list that is neither coherent nor complete. A wide-ranging exemption for voluntary rescue activities inserted into Article 132 would be a simple way of streamlining and harmonising VAT rates, according to the MRI spokesman. While former MEP, the UK’s Chris Davies, called for an EU-wide VAT exemption for mountain rescue teams before losing his seat in last year’s elections, sitting Irish MEP Mairead McGuinness has publicly supported the initiative. At home, support for the proposal recently came from Sinn Féin, who, at their recent Ard Fheis in Derry, called on “the Irish Government and EU to exempt the volunteer rescue services from having to pay VAT on their rescue equipment which they need in order to maintain the high standard of emergency work that they carry out”. Should the proposal become a reality, it would bring much-needed equity for all rescue services, as sea rescue services already benefit from such an exemption.

REFORM AND HARMONISATION This proposal seeks an exemption for all search and rescue organisations written into Article 132 of the VAT Mountain Rescue volunteers submit that for the reasons outlined Directive. This exemption would command widespread above immediate positive action must be taken by the Commission in public support and more importantly, would enable altering the EU VAT Directive, facilitating member state governments to volunteers to make more use of their limited resources. provide a VAT exemption for all voluntary search and rescue organisations It is also a move towards a more equitable, uniform depending on voluntary subscription. and easily applicable VAT system. The provision of EU Members and prospective members of the European Parliament are support through tax exemptions for voluntary rescue urged to bring their influence to bear in securing a rapid, positive and services provided for the public good would be positively equitable outcome. received by European citizens and increase the perceived relevance of and respect for the EU at local level. For further information visit www.mountainrescue.ie