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%.
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.