Clare Daly (Dublin North, Socialist Party)
Link to this: Individually | In context | Oireachtas source

43. To ask the Minister for Finance if the water charges will be subject to VAT; if he will indicate the rate of VAT applicable; if not then the reason for same; and if the EU authorised its exclusion. [19098/14]

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

The supply of water by local authorities and Irish Water is exempt from VAT. This VAT exemptions applies to all supplies of water, including supplies to domestic households, businesses and others.

Ireland's long standing VAT exemption for the supply of water is currently contained in paragraph 14(2) of Schedule 1 to the VAT Consolidation Act 2010.  The exemption is based on a derogation from EU VAT law contained in Article 371 and Annex X of the EU VAT Directive.