Finian McGrath (Dublin North Central, Independent)
Link to this: Individually | In context

Question 112: To ask the Minister for Finance his views on a matter (details supplied). [32782/11]

Michael Noonan (Limerick City, Fine Gael)
Link to this: Individually | In context

The supply of gas is subject to carbon tax and VAT but is not subject to the Public Service Obligation levy. With regard to the application of VAT on gas bills, in accordance with section 37(1) of the Value-Added Tax Consolidation Act 2010, the amount on which VAT is chargeable is the total consideration receivable by the supplier, including all taxes, commissions, costs and charges whatsoever, but not including the VAT itself. This reflects EU VAT law, with which Irish tax law must comply. In this regard, Article 78 of the EU VAT Directive provides that the taxable amount shall include taxes, duties, levies and charges, excluding the VAT itself.

In this respect, where a supply of service, such as a gas bill, includes carbon tax, VAT law dictates that VAT should be calculated on the carbon tax element of the charge as well as the charge for the service. The same situation applies in the case of other excises, including for example excises on petrol, auto-diesel, tobacco and alcohol products.

In relation to estimate bills, I understand that an amount paid on foot of an estimated bill that is in excess of the consumer's liability is offset against subsequent bills. In this respect any under/overpayment of tax is automatically adjusted.