Wednesday, 20 November 2019

Questions (84)

Brendan Ryan

Question:

84. Deputy Brendan Ryan asked the Minister for Finance his views on the fact that utility companies are adding VAT onto the total charge of consumption, including the carbon tax, indicating that VAT is being charged on the carbon tax itself; if this was the intention of the carbon tax when it was constituted; and if he will make a statement on the matter. [47997/19]

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Written answers (Question to Finance)

I am advised by Revenue that what constitutes consideration for a supply of goods or services is defined in EU VAT law and consists of everything which the supplier is entitled to receive in return for goods or services supplied including taxes, duties, levies and charges, excluding the VAT itself. Therefore, VAT is chargeable on the carbon tax element of domestic utility bills.