I am advised by the Revenue Commissioners that the VAT rating of goods and services is subject to the requirements of EU VAT law with which Irish VAT law must comply. The VAT rate depends on the nature of the good or service supplied and must accord with the EU VAT law. Irish VAT law provides that the following are exempt from VAT:
the provision of services by a funeral undertaking;
grave digging services; and
the sale of cremation plots and burial plots from a cemetery that was opened more than 5 years prior to the date of sale.
Some fees charged by cemeteries are liable to VAT. These include:
Opening and Reopening fees: These fees are in the nature of permission granted by a cemetery for a specified grave in the cemetery to be dug to receive an interment of ashes or a coffin. Such fees are liable at the standard rate of 23%.
Permit fees: These fees are in the nature of a permission to erect a memorial (typically a headstone and surround) on a grave. Such fees are liable at the standard rate of 23%.
Plot sales: The sale of cremation plots and burial plots from a cemetery that was opened within 5 years prior to the date of sale. Such fees are liable at the reduced rate of 13.5%.
The VAT issues raised by the Deputy are explained further in the Revenue publication VAT Guidance Note for Public Bodies (eBrief 56/2010) available on the Revenue website www.revenue.ie.