Ruth Coppinger (Dublin West, Socialist Party)
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33. To ask the Minister for Finance if VAT will be applied to water supplied by Irish Water in view of the fact that the company is not a local authority; and if he will report on any consultations with the EU Commission on the matter. [41764/14]

Michael Noonan (Limerick City, Fine Gael)
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The supply of water by local authorities and Irish Water is exempt from VAT. This VAT exemption 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.

There have been no consultations with the EU Commission on the matter.