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VAT

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  • 04-06-2011 11:10am
    #1
    booboo88
    Closed Accounts Posts: 2,107 ✭✭✭


    I realise its charged on everything, but when do a phone company charge 21 percent and a electricity company charge 13.5%?
    Can someone please tell me they are both service providers so should they not be under same bracket


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    #2
    foggy_lad
    Closed Accounts Posts: 20,373 ✭✭✭✭foggy_lad


    booboo88 wrote: »
    I realise its charged on everything, but when do a phone company charge 21 percent and a electricity company charge 13.5%?
    Can someone please tell me they are both service providers so should they not be under same bracket
    A Phone is seen as a luxury and as such incurs a higher/the highest rate.


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    #3
    booboo88
    Closed Accounts Posts: 2,107 ✭✭✭booboo88


    foggy_lad wrote: »
    A Phone is seen as a luxury and as such incurs a higher/the highest rate.
    Even a house phone?


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    #4
    drunkmonkey
    Registered Users Posts: 28,201 ✭✭✭✭drunkmonkey


    foggy_lad wrote: »
    A Phone is seen as a luxury and as such incurs a higher/the highest rate.

    Getting an african foot massage from donegal virgins in a swanky hotel in Cavan is a luxury but that only attracts the low rate as it's a service.

    Not sure if you could class a phone service in this day an age a luxury. Maybe it's time it was reviewed?


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    #5
    Hootanany
    Registered Users Posts: 5,477 ✭✭✭Hootanany


    drunkmonkey wrote: »
    Getting an african foot massage from donegal virgins in a swanky hotel in Cavan is a luxury but that only attracts the low rate as it's a service.

    Not sure if you could class a phone service in this day an age a luxury. Maybe it's time it was reviewed?

    Which Hotel in Cavan does that


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    #6
    greendom
    Registered Users Posts: 16,382 ✭✭✭✭greendom


    booboo88 wrote: »
    Even a house phone?

    I think you should just count yourself lucky that electricity, gas and oil aren't charged at 21%.


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    #7
    booboo88
    Closed Accounts Posts: 2,107 ✭✭✭booboo88


    greendom wrote: »
    I think you should just count yourself lucky that electricity, gas and oil aren't charged at 21%.
    Dont worry I'm not complaining about the low one, was just curious as to why, if its a service, as are all the above, is it being charged higher,


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    #8
    greendom
    Registered Users Posts: 16,382 ✭✭✭✭greendom


    booboo88 wrote: »
    Dont worry I'm not complaining about the low one, was just curious as to why, if its a service, as are all the above, is it being charged higher,

    It's probably a legacy issue - when vat rates were first set up phones were a luxury.


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    #9
    maxer68
    Closed Accounts Posts: 1,076 ✭✭✭maxer68


    21% is the standard rate of vat in Ireland
    13.5% is the reduced rate and is applied to various services along with electricity, home heating oil and other products.
    A new 9% special reduced rate comes into effect on July 1st and will apply to tourist related and labour intensive services.


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