Dáil Éireann debate -
Thursday, 26 Mar 1998

Vol. 489 No. 2

Written Answers. - VAT Charges.

Noel Ahern

Question:

118 Mr. N. Ahern asked the Minister for Finance if he will clarify the situation in relation to the VAT laws, particularly in relation to VAT charged to customers by Bord Gáis; and whether VAT should be charged on the amount of gas used by a customer or on the amount contracted to use between customer and company but which was not used. [7775/98]

Minister for Finance (Mr. McCreevy)

The position in this regard is governed by EU VAT law with which Irish VAT law must comply. Under the EU Sixth VAT Directive, VAT is chargeable on the total consideration received by the supplier from the customer. Accordingly, VAT is chargeable on the total amount paid to Bord Gáis by the customer for the supply of gas and not on the actual number of units used.