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Dáil Éireann díospóireacht -
Thursday, 10 Apr 2003

Vol. 565 No. 2

Written Answers. - VAT Charges.

Róisín Shortall

Ceist:

79 Ms Shortall asked the Minister for Finance the reason VAT is charged on the public service obligation levy element of the standard domestic electricity bill; if it is appropriate that the ESB should charge VAT in this instance; and if he will make a statement on the matter. [10588/03]

EU VAT law, with which Irish law must comply, requires that VAT applies to the total consideration due in respect of supplies of goods or services including all taxes, commissions, costs and charges whatsoever but not including value added tax chargeable in respect of the supply.

Therefore, the public service obligation levy is included in the total consideration and is subject to VAT. It is a legal requirement that the ESB comply with the provisions of VAT law and charge VAT on the public service obligation levy.

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