Dáil Éireann Debate, Wednesday - 3 June 2020
50. Deputy Cathal Crowe asked the Minister for Finance the reason recycled plastic materials which have been subject to 23% VAT in their first lives are subject to VAT once again when it comes to recycling only to again be charged VAT at the point of resale; and if he will make a statement on the matter. [8374/20]
Amharc ar fhreagraI am advised by Revenue that the VAT rating of goods and services is subject to EU VAT law, with which Irish VAT law must comply. In accordance with VAT legislation, the supply of all goods is generally liable to the standard rate of VAT, currently 23%, including goods manufactured or produced from recycled materials; the acceptance of waste for recycling is regarded as a service of the disposal of waste material and is liable to tax at the reduced rate of 13.5%.
Businesses who are registered for VAT are entitled to recover the VAT they incur on their business inputs used in the purchase or production of goods. VAT is a tax on the value added to a supply and the collection and recovery of VAT takes place at each stage of the chain of supply from manufacturing to retailer.
