Why is there VAT on the government jet?

If it's bought in another EU country is the vat not paid there.
If I buy something from France for delivery to Ireland, vat is paid at the time of purchase.
 
If it's bought in another EU country is the vat not paid there.
If I buy something from France for delivery to Ireland, vat is paid at the time of purchase.
Not if you are a business, would be an Intra Community Supply and zero rated . So maybe the Dept of defense is not a business but then they should use an Irish vat registered broker who will charge them vat that will be paid to Revenue. So still no net Vat cost as I see it.
 
The purchasing body pays VAT to Revenue. So it comes out of te Department's budget but it's not a net cost to the taxpayer.

It's an accounting exercise essentially.
 
No it doesn’t because the Department of Defence is a public body outside the scope of VAT for the purchase of military aircraft.
Fair enough. That's how it works for most purchasing bodies though. I've never really understood why money was shuffled around the books that way, but it is.
 
Fair enough. That's how it works for most purchasing bodies though. I've never really understood why money was shuffled around the books that way, but it is.
It’s not really. Spending and revenuw are pretty segmented at national level. Giving Departments credits for VAT paid would introduce complexity.

Also VAT is an EU tax so for all sorts of reasons it has to be treated the same in Ireland as everywhere else.
 
Back
Top