Lucinda Creighton
Ceist:159 Deputy Lucinda Creighton asked the Minister for Finance if it is envisaged that cemeteries will be included in the Finance Bill 2010. [10002/10]
Amharc ar fhreagraTuesday, 2 March 2010
Ceisteanna (116)
Freagraí scríofa
I understand that the Deputy is referring to the issue of VAT and cemeteries. The Revenue Commissioners have confirmed that under the Irish VAT Act the purchase of a burial plot in a cemetery or through an undertaker is taxable at the lower VAT rate of 13.5%. Consequently the supply of burial plots by private cemeteries is currently subject to VAT.
While cemeteries operated by local authorities are currently outside of the scope of VAT, provision is being made in the Finance Bill 2010 to apply VAT to certain local authority services from 1 July 2010. Local authority cemeteries will then become subject to VAT. However, since the local authorities will have an entitlement to recover from Revenue the VAT incurred on their input costs in providing the service, the degree to which the VAT is passed on should be less than the full VAT rate of 13.5%. I will be urging local authorities to take this into account. It is of course a matter for a local authority to determine the overall charge in respect of the services it supplies.
This change is required in response to a ruling by the European Court of Justice on 16 July 2009 under Case C-554/07 which found that Ireland had failed to correctly transpose the EU VAT Directive regarding the application of VAT to services supplied by public bodies including local authorities. In order to comply with the ECJ ruling, it is necessary to make services provided by public bodies including local authorities subject to VAT unless they are otherwise exempted from VAT in accordance with the EU VAT Directive.