Dáil Éireann Debate, Wednesday - 17 September 2014
172. Deputy Ruth Coppinger asked the Minister for Finance if the forthcoming water charges will be chargeable to VAT, and if so at what rate, or will they be zero rated, or exempted; and if he will make a statement on the matter. [33011/14]
View answerThe supply of water by local authorities and Irish Water is exempt from VAT. This VAT exemption applies to all supplies of water, including supplies to domestic households, businesses and others.
Ireland's long standing VAT exemption for the supply of water is currently contained in paragraph 14(2) of Schedule 1 to the VAT Consolidation Act 2010. The exemption is based on a derogation from EU VAT law contained in Article 371 and Annex X of the EU VAT Directive.
