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Ireland risks VAT charge on water

  • Sep 15, 2013 | Richard Asquith

Ireland risks VAT charge on water

Consumers in Ireland look likely to face a VAT charge on their domestic water supplies from 2015.

Currently water is charged VAT free on the basis that it is a publically-provided service.  However, it is now provided by a private company, Irish Water, so can no longer benefit from the exemption.  Irish Water will be required to charge the reduced Irish VAT rate of 13.5%.

The current exemption is based on the agreement Ireland struck on entering the European Union, and harmonisation of Irish VAT with the EU VAT Directive.

There will be a similar charge on businesses; however, since they are VAT registered they will be able to offset the VAT against their output VAT.

VP Global Indirect Tax
Richard Asquith
VP Global Indirect Tax Richard Asquith
Richard Asquith is VP Global Indirect Tax at Avalara, helping businesses understand their compliance obligations as they grow globally. He can be contacted at: He is part of the European leadership team which won International Tax Review's 2020 Tax Technology Firm of the Year. Richard trained as an accountant with KPMG in the UK, and went on to work in Hungary, Russia and France with EY.