Terence Flanagan (Dublin North East, Independent)
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122. To ask the Minister for Finance the reason there is value added tax on the environmental tax on gas bills; and if he will make a statement on the matter. [29717/15]

Michael Noonan (Limerick City, Fine Gael)
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I am advised by the Revenue Commissioners that VAT is an EU-wide tax and Irish VAT law must comply with the EU VAT Directives.  Article 78 of EU Council Directive 2006/112/EC provides that the taxable amount shall include taxes, duties, levies and charges, excluding the VAT itself.  This is transposed in section 37(1) of the Value-Added Tax Consolidation Act 2010 which provides that the amount on which Value-Added Tax is chargeable is the total consideration receivable by the supplier, including all taxes, commissions, costs and charges whatsoever but not including the Value-Added Tax itself.  Accordingly, VAT is chargeable on the environmental tax element in the supply of any fuel product.