Written answers

Tuesday, 9 November 2010

9:00 am

Photo of Leo VaradkarLeo Varadkar (Dublin West, Fine Gael)
Link to this: Individually | In context

Question 185: To ask the Minister for Finance if excise and VAT is applied to natural gas and oil used for electricity generation. [41132/10]

Photo of Brian Lenihan JnrBrian Lenihan Jnr (Dublin West, Fianna Fail)
Link to this: Individually | In context

I am advised by the Revenue Commissioners that the position is as follows: Mineral oil that is used for the generation of electricity is exempt from Mineral Oil Tax (excise duty on mineral oils), and natural gas used for that purpose is exempt from the Natural Gas Carbon Tax introduced with effect from 1 May 2010.

The VAT treatment of natural gas used in the generation of electricity depends on whether the gas is imported through the natural gas distribution system or sourced on the home market. The importation of natural gas through the natural gas distribution system is exempt from VAT in accordance with paragraph 13 to Schedule 1 to the Value Added Tax Act, 1972. Natural gas sourced on the home market and hydrocarbon oil of a kind used in the generation of electricity are subject to VAT in accordance with paragraphs 17(3) and 17(4) respectively of Schedule 3 to the Value Added Tax Act, 1972. However, as the onward supply of electricity is subject to VAT, deductibility is allowed in respect of the VAT incurred on inputs.

Comments

No comments

Log in or join to post a public comment.