Catherine Murphy
Ceist:238 Ms C. Murphy asked the Minister for Finance his views on making schools exempt from VAT; and if he will make a statement on the matter. [13570/06]
Amharc ar fhreagraTuesday, 4 April 2006
Ceisteanna (223, 224)
Freagraí scríofa
In accordance with the EU sixth VAT directive and Irish VAT law, most education and training establishments, including primary and secondary level schools, are exempt from VAT. This means that they do not charge VAT on the services they supply but cannot recover VAT on the goods and services that they purchase. Essentially, only VAT registered businesses which charge VAT are able to recover VAT.
It is normal for state funded services to bear VAT on their purchases. However, Exchequer funding for such services, including primary and secondary schools, takes account of VAT when allocations are being made by the Government.
Olivia Mitchell
Ceist:239 Ms O. Mitchell asked the Minister for Finance if it is a legal requirement that VAT be charged on road tolls in circumstances where the toll is paid directly to the Government. [12816/06]
Amharc ar fhreagraThe legal position in respect of VAT on tolls was clarified by the European Court of Justice in September 2000 in a series of rulings concerning the VAT treatment of tolls in Ireland, France, the United Kingdom and Greece.
The position is that, in principle, the activity of providing access to roads on payment of a toll is a supply of services subject to VAT under the conditions of the sixth directive. Under Article 4(5) of the directive, if the State, regional or local government authorities or other bodies governed by public law carry out this activity acting as public authorities, the services do not fall within the scope of VAT, unless their non-taxation would lead to a significant distortion of competition. The European Court of Justice examined the conditions under which toll roads are operated in Ireland and ruled that because the tolls are operated by a private concern, the tolls are subject to VAT.