John Perry
Question:76 Mr. Perry asked the Minister for Finance the plans he has to remove VAT charges to persons in receipt of the free schemes entitlements; and if he will make a statement on the matter. [6347/01]
Written Answers. - Tax Code.
It is a requirement of EU VAT law, with which Irish VAT law must comply, that these services are subject to VAT irrespective of the age or circumstances of the individual consumer. It is not, therefore, within my power to zero rate the supply of electricity, telephone or fuel for heating.
For those elements of telephone and electricity bills covered by the free schemes provisions, the VAT demand is borne by the Department of Social, Community and Family Affairs. Any calls made or electricity used outside the free scheme element is subject to VAT at the appropriate rate. The free fuel allowance covers the cost of a certain amount of fuel, including the VAT amount in its price.