VAT to applied to tolls

roosterman71

Just heard on the news that VAT is going to applied to tolls. Revealed today after the publication of the Finance Bill. Here's a link - about half way down

But is there VAT not on tolls already?

Victor

roosterman71 wrote: »

But is there VAT not on tolls already?

To my knowledge yes. There had been some anomaly with VAT, where local authorities didn't need to apply VAT, but I don't think any local authorities run tolls.

traco

Just looked at my company statement and there is VAT on M1, M4, M8 and Eastlink.

There is no VAT on M50 or Dublin Port Tunnel.

At least thats what I am seeing on the Statement

trad

All the government have to do is drop their share of the toll revenue by an amount equal to 21% vat on the toll and then the'll get the vat as revenue so they won't be losing any money and we won't have to pay any more.

traco

Just read the link in the OP and it makes sense - the M50 and DPT are run by public bodies and the others are by private operators, hence the no VAT on the M50 and DPT.

I think you can take it that these two tolls will be going up by 21% on July 1st as far as the motorist is concerned.

Extract from article
"VAT charges will be levied on services supplied by public bodies, including waste collection, landfill, and recycling services, toll roads, off-street parking and the operation of leisure facilities from July 1st. However, education, health, water and passenger transport services remain exempt."

eden_my_ass

So to summarise, we pay motor tax for the construction and maintenance of our roads, but we pay tolls for the inability to use said road tax efficiently to build proper roads and then we pay tax on the toll which is a supplement to our motor tax because....oh god my head hurts!!

Guy:Incognito

eden_my_ass wrote: »

So to summarise, we pay motor tax for the construction and maintenance of our roads, !!

Nope we pay motor tax to tax our cars. It's not ringfenced for roads and it's not claimed to be.

eden_my_ass

Stekelly wrote: »

Nope we pay motor tax to tax our cars. It's not ringfenced for roads and it's not claimed to be.

But doesn't VRT act as a tax on the actual use of that car on Irish roads...so surely motor tax in some way is defined as being for the provision of those roads...I never said ring fenced for roads "only"....

I was simply making the point at how sad and ridiculous a situation it is that we pay VAT on something we shouldn't be paying because we pay motor AND income tax to provide such services...but hey if you like tax on your tax you must be loving Irish politics

traco

eden_my_ass wrote: »

But doesn't VRT act as a tax on the actual use of that car on Irish roads...so surely motor tax in some way is defined as being for the provision of those roads...I never said ring fenced for roads "only"....

Nope - VRT is just for the privilege of getting an irish plate so that they then have the authority to charge you the motor tax which goes to the local council (I believe).

After which it is up to them to decide what is the most effective way of piddling it away by obtaining the least amount of value for your hard earned euro. At least thats my understaning of the system

Cookie_Monster

traco wrote: »

Extract from article
"VAT charges will be levied on services supplied by public bodies, including waste collection, landfill, and recycling services, toll roads, off-street parking and the operation of leisure facilities from July 1st. However, education, health, water and passenger transport services remain exempt."

:eek: Thats a lot of stuff going up by 21%

Diabhal_Glas

Is the toll company also paying Vat themselves out of the profits?

traco

Cookie_Monster wrote: »

:eek: Thats a lot of stuff going up by 21%

No all will go up by 21%, services should go up by 13.5% - not that it makes me feel any better :mad:

Heroditas

traco wrote: »

Extract from article
"VAT charges will be levied on services supplied by public bodies, including waste collection, landfill, and recycling services, toll roads, off-street parking and the operation of leisure facilities from July 1st. However, education, health, water and passenger transport services remain exempt."

Plenty of off-street parking charges VAT already

Also, you can already claim tax back on bin charges but that will cease as of next year so essentially it won't be increasing.

I think......

roosterman71

On Matt Coopers show they had some fellas on talking about it. Apparently its an EU directive that services should be charging VAT. However, only private operators here do it and public ones don't. Now public operators do too.

I don't see prices increasing as the money for public services (bin collection, tolls, etc) is already going to the government so in a way they already get the VAT. Though I wouldn't be surprised to see increases.

Off motors a bit, but tax back on things like bin charges will be abolished now too.

Rory1

When the Westlink toll on the M50 was owned by a private company, all tolls paid included at 21% VAT. Then the Irish State acquired the concession and VAT was no longer charged yet there was no decrease in the Gross price. How we have a VAT on public sector tolls and effectively VAT x 2.