Finian McGrath
Question:198. Deputy Finian McGrath asked the Minister for Finance if he will support a matter (details supplied) regarding VAT on carbon tax; and if he will make a statement on the matter. [33186/14]
View answerWednesday, 17 September 2014
Questions (198)
Written answers
Section 37(1) of the Value-Added Tax Consolidation Act 2010, provides that the amount on which VAT is chargeable 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 bill as well as the charge for the service.
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.