I would point out that domestic fuels, namely electricity and gas, are already subject to VAT at the reduced rate of 13.5% in Ireland. The majority of EU Member States, nineteen of the 27 States, apply higher VAT rates to domestic energy than Ireland. Ireland can avail of this reduced rate because of a provision, under Article 118 of the EU VAT Directive that provides that where a reduced rate applied to a good or service on 1 January 1991, Member States can continue to avail of that reduced rate. However, this provision is restricted in that only a rate of 12% or more may apply to domestic fuels.
The level and timeframe of any changes to the Irish VAT rates will be determined in the context of the annual Budget cycle.