VAT relief scheme must be amended to include Irish Community Air Ambulance – Buttimer

VAT relief scheme must be extended to include Ireland’s only charity funded air ambulance service so that it is not landed with a bill of €320,000, a Fine Gael Senator has said.

Irish Community Air Ambulance has aided the National Ambulance Service on almost 1,000 occasions over the past two years, and now faces a VAT payment of €320,000 due to a Brexit-related change in aircraft leasing, Senator Jerry Buttimer said.

Speaking this morning in the Seanad, Senator Buttimer said: “Irish Community Air Ambulance has seen a rise of 20% in their taskings to date this year, highlighting the demand and need for this vital service in the communities it serves.

“Each tasking costs an average of €3,500, representing excellent value for money while also saving lives and transporting people for urgent treatment.

“Irish Community Air Ambulance leases its helicopters from Sloane Helicopters, a company based in the UK.  In June, Sloane Helicopters will set up a company to enable it to continue operating in Ireland in this post-Brexit era.

“The new company will operate under an Irish Airline Operating Certificate, AOC, and Irish Community Air Ambulance will lease helicopters from the new Irish entity. As a result of this arrangement, Irish Community Air Ambulance will be charged VAT on its payments to Sloane Ireland.

“From speaking with Michael Sheridan, Chief Executive of Irish Community Air Ambulance, I know that the charity will now have to pay €320,000 in VAT in a full calendar year based on its current levels of service.

“This will represent a significant cost for the charity which provides a vital service in support of the National Ambulance Service. This VAT bill could instead be used by the charity to fund an additional 92 lifesaving missions each year.

“The organisation has faced considerable difficulties raising funds during the pandemic but has continued to increase its service provision regardless.

“I am calling on the Minister for Finance to review the VAT relief scheme under section 103 of the Value Added Tax Consolidation Act 2010, and to include Irish Community Air Ambulance under the legislation introduced by former Minister Michael Noonan in 2013 for inshore aircraft.

“An equitable outcome must be achieved for Irish Community Ambulance so that donations given to fund the rescue of people in medical emergencies by air can achieve the maximum return in the same way as donations given to fund the rescue of people in difficulty at sea are currently able to do,” concluded Senator Buttimer.