# Why do we have to pay VAT on the new Carbon Tax? "Tax on Tax"



## MANTO (27 Apr 2010)

Why do we have to pay VAT on the new Carbon Tax?


----------



## CXC (28 Apr 2010)

havnt looked at this in detail but VAT is a tricky tax - a supply of services is basically defined as anything which is not a supply of goods, thus making it extremely wide ranging. Vat on services also applies on for example the toleration of an event. On basic principles I think not though.


----------



## Rud Annamh (10 May 2010)

According to the helpful leaflet included in our gas bill today, "carbon tax is subject to a VAT rate of 13.5%". 

So the tax is taxed. Great. 

<rant> I suppose I shouldn't be surprised, in a country where overpriced and heavily taxed alcohol in a restaurant is included when calculating service..... </rant>


----------



## monagt (22 May 2010)

Was there a case where tax on tax was declared illegal?
I seem to remember something similar being brought to Court - many years ago.


----------



## Seesee (31 May 2010)

Just got my first natural gas bill today and checking it now realise I am being charged vat on the carbon tax element.  This just doesn't seem right to be.  Bord Gais has to pay the carbon tax on to the collector general and the vat on the supply of service but why vat on the carbon tax. I'll be getting on to bord gais and revenue tomorrow on this but does anyone have any further information on it? I know we have to pay vat on vrt...!!!!!


----------



## Seesee (1 Jun 2010)

Follow up on this: yes bord gais are applying a vat on top of the carbon tax and yes the revenue commissioners are aware that this is how it will be applied. Grrr. Got on the consumers association of ireland and let them know and about to email relevant opposition td. I'm not against carbon tax per se but I am against paying tax on a tax!!


----------



## theresa1 (21 Jun 2010)

Remember this when the Green Party come looking for your vote.


----------



## galwaytt (22 Jun 2010)

theresa1 said:


> Remember this when the Green Party come looking for your vote.


 
exactly !


----------



## jaymz (17 Jan 2011)

*Here's the science bit*

I work in tax, this paragraph is from Revenue's VAT Guide 2008

_ 
"9.1 ​_*General rule* 
In the case of the supply of goods or *services* and the intra-Community acquisition of goods, the amount on which VAT is chargeable is normally the total sum paid or payable to the person supplying the goods or services *including all taxes*, commissions, costs and charges whatsoever but not including the VAT chargeable in respect of the transaction.VAT on imports is charged on the Customs value of the goods (see Chapter 7)." *Italics mine.*

So basically, VAT is due on the carbon tax and we all have to put up with it unless we go to our local politicians as they are the only ones with the power to change legislation.

Nice.​


----------



## Kanai (2 Mar 2011)

I have only just noticed that I have paid vat on my carbon tax and went searching for this thread.
It really is immoral, ethically unsound, whatever, that we have to pay a tax on a tax. Where is the logic on that.
I'm not sure about the fact that all services and commissions etc, as per last poster, is wholly correct either.
I've gotton invoices with delivery charges and postage with no vat. It's the only one I can remember off the top of my head.
While it sticks in my craw having to pay VAT on it, I don't really expect the gov't to stop this sleight of hand stealing.


----------



## theresa1 (2 Mar 2011)

theresa1 said:


> Remember this when the Green Party come looking for your vote.


 


- Thanks Voters - think the Green Party got the message.


----------



## Protocol (2 Mar 2011)

VAT is always levied on top of all excise duties.

It always has been like this.

In all countries.


----------



## Kanai (2 Mar 2011)

Hi Protocol,
Woul you really class this charge as  Excise? I think it's stretching the term!


----------

