Terence Flanagan
Question:122. Deputy Terence Flanagan asked the Minister for Finance the reason there is value added tax on the environmental tax on gas bills; and if he will make a statement on the matter. [29717/15]
View answerThursday, 16 July 2015
Questions (122)
Written answers
I am advised by the Revenue Commissioners that VAT is an EU-wide tax and Irish VAT law must comply with the EU VAT Directives. Article 78 of EU Council Directive 2006/112/EC provides that the taxable amount shall include taxes, duties, levies and charges, excluding the VAT itself. This is transposed in section 37(1) of the Value-Added Tax Consolidation Act 2010 which provides that the amount on which Value-Added Tax is chargeable is the total consideration receivable by the supplier, including all taxes, commissions, costs and charges whatsoever but not including the Value-Added Tax itself. Accordingly, VAT is chargeable on the environmental tax element in the supply of any fuel product.