A major victory has been won by the People-Animals-Nature party with parliament agreeing that the VAT on veterinary bills in future will qualify towards a reduction in the owner’s income tax.
Parliament passed the vet bill amendment to the 2016 State Budget that had been proposed by PAN, but its proposal that there should be an end to VAT free bullfighting tickets was not approved.
The change to the 2016 budget means that taxpayers can claim back 15% of the VAT spent on vet bills in the same way that VAT on the maintenance and repair of cars, hotel bills, restaurant bills and hairdressing bills can be reclaimed.
There is a ceiling of €250 each year in the vet expenses scheme and the move has met with wide approval in the hope that more owners will have their animals correctly treated by trained veterinary staff.
The deduction is automatic if those paying vet bills give their fiscal number at the time of payment.
PAN originally had wanted agreement to deduct medical and veterinary expenses from income tax under ‘health expenses’ which would have cost the treasury much more but the party's one MP backed down to a lower deduction under pressure from the Left Bloc which then voted for the final amendment.
André Silva, PAN’s lone MP, explained the vet bills amendment was approved, but the VAT free status for bullfighting tickets remained.
PAN also wanted the maximum rate of VAT on the trade in animals bred for their fur and for laboratory experiments, but ended up getting 23% registered for the first category only.
In prior negotiation with the government, PAN dropped the question of VAT on animals purchased for scientific experiments.
