Calls for 23% 'luxury' Vat on sun cream to be dropped

The Irish Cancer Society wants to have sun creams — which are currently classed as cosmetics or luxury goods — that have sun protection factor (SFP) 30 and higher reclassified as essential healthcare goods.

Irish Cancer Society director of advocacy Rachel Morrogh said: “The current Vat rate may create a cost-barrier for people trying their best to reduce their risk of skin cancer yet faced with financial realities arising from the cost-of-living crisis.

“Re-classifying products that are SPF 30 and higher as essential healthcare goods would mean they were exempt from Vat and make the price point more affordable.

“This would support families who struggle to afford as much sunscreen as is recommended, particularly when trying to protect a whole family or when someone is an outdoor worker.

“Abolishing Vat would help with the affordability of sunscreen and ensure that reducing the risk of skin cancer is not a privilege reserved for those who have the means to pay current prices for it.” 

She added: “It’s an issue that we hope to see leadership from Government on in Budget 2024 and we will be calling on all politicians to support our campaign to abolish Vat on any sunscreen of factor 30 and higher.

Sunscreen is simply not a 'luxury good', it is an essential health product and can be a lifesaver. 

Approximately 13,000 people are diagnosed with skin cancer every year in Ireland and nine out of every 10 cases are caused by UV light radiation from the sun or sunbeds.

Skin cancer is a largely preventable disease if people who use the sun take “practical, safe steps” to help reduce their risk level.

Research carried out on behalf of the Irish Cancer Society in 2022 revealed that a third of people were ‘not at all worried’ about sunburn in Ireland.

This is despite results from a National Cancer Control Programme (NCCP) study showing that 92% of respondents have experienced sunburn at least once in their lifetime with many recalling multiple episodes.

Almost 50% of respondents experienced sunburn at least once in the past 12 months.

The Irish Cancer Society's move on the Vat rate comes as cancer charities in the UK have also called for the same cut to make it more affordable.

Previous call to cut sun cream Vat

When Michael Healy-Rae raised the prospect of a Vat cut on sun cream in July 2020, he was told by the then Finance Minister Paschal Donohoe that a cut was not possible.

But despite this, a change to EU Vat rules could still be on the cards.

Mr Donohoe told the Kerry TD that the Revenue Commissioners had in turn told him that the Vat rating of goods and services is subject to the requirements of EU Vat law “with which Irish Vat law must comply”.

He quoted the EU Vat directive, which generally provides that supplies of goods and services must be chargeable to Vat at the standard rate but that lower rates are permitted “in very limited circumstances”.

He concluded: “There is no scope for a reduction in the rate of Vat on sun protective creams that would be in compliance with the EU VAT Directive.” 

Following pressure, Vat rates on a large variety of menstrual products have gradually been reduced from the standard rate to a reduced rate of 9% before, in January this year, a 0% rate across almost all menstrual products.

EU Vat rules state ‘pharmaceutical products for healthcare use’ are eligible for reduced Vat rates. However, the list of goods and services eligible for a reduced rate does not mention sun protection products.

Sun cream is also not covered by the category in the European Commission's Vat directive of ‘pharmaceutical products of a kind normally used for healthcare’. 

As a result, sunscreen products cannot be considered as pharmaceutical products under the Vat directive and member states are not permitted to apply a reduced Vat rate to them.