Vol. 453 No. 3
77 Mr. Finucane asked the Minister for Finance if he will ensure that a group water scheme (details supplied) operated as a private limited company is not exempted from VAT; and if he will make a statement on the matter. [9269/95]
The entity operating the group water scheme in question is a self-financing, non-profit making organisation. As such, it cannot be regarded as operating in the course or furtherance of business for VAT purposes and, therefore, cannot be registered for the tax. This treatment is effectively the same as exemption and means that, while the group water scheme has no liability to VAT in respect of charges to its members, it has no recovery rights in respect of VAT charged to it in the course of its operations. Similar treatment applies to all such group water schemes throughout the country as well as to local authorities involved in the supply of water generally.
