Sandra McLellan
Question:84 Deputy Sandra McLellan asked the Minister for Finance if he will extend the lowered VAT reduction from 13.5% to 9% for the tourism and hospitality sectors until September 2013. [18437/12]
View answerWednesday, 18 April 2012
Questions (90, 91, 92)
Sandra McLellan
Question:122 Deputy Sandra McLellan asked the Minister for Finance if he will extend the nine per cent tourism VAT rate to the end of 2013 in order that international tour operators can plan their trips to Ireland with greater certainty on pricing. [16558/12]
View answerWritten answers
I propose to take Questions Nos. 84 and 122 together.
The Finance (No. 2) Act 2011 provided for a second reduced VAT rate, of 9%, on a temporary basis in respect of certain tourism-related services and goods for the period 1 July 2011 to 31 December 2013.
Dessie Ellis
Question:85 Deputy Dessie Ellis asked the Minister for Finance if his attention has been drawn to the fact that carbon tax added to gas bills are included in the bill total which makes up the VAT charged on each bill which means customers pay tax on a tax. [18861/12]
View answerThe amount on which VAT is chargeable, in accordance with section 37(1) of the Value-Added Tax Consolidation Act 2010, is the total consideration receivable by the supplier, "including all taxes, commissions, costs and charges whatsoever" but not including the VAT itself. VAT is governed by the EU VAT Directive, with which Irish VAT law must comply. Article 78 of the VAT Directive provides that the taxable amount shall include "taxes, duties, levies and charges, excluding the VAT itself".
In this respect, where a supply of service, such as a gas bill, includes carbon tax, VAT law dictates that VAT should be calculated on the carbon tax element of the charge as well as the charge for the service. The same situation applies in the case of other excises, including for example excises on petrol, auto-diesel, tobacco and alcohol products.
Guidance in relation to the VAT treatment of the total consideration receivable by a supplier is set out in the VAT Guide. This publication is available on the Revenue website at www.revenue.ie.