FAQFAQ      RegisterRegisterLog inLog in



 
        BREEDING FORUM >> Irish 4.5% VAT rate could change in near future
Author Message
Irish Paddy



View user's profile

Posted: Fri Mar 15, 2013 16:42 pm

The European Commission took a case against Ireland with regard to the reduced rate of VAT (currently 4.8%) that applies to horses and greyhounds in Ireland. The European Commission sought a ruling from the European Court of Justice that Ireland in applying this low rate, had failed to fulfil its obligations under European VAT law.

Despite extensive submissions by the Government defending Ireland’s position, the European Court has ruled against Ireland. The essence of this judgement is that Ireland was incorrect in applying a VAT rate of 4.8% on the supply of horses, greyhounds and insemination services.

While there will be no immediate change to the VAT rate on the supply of these items and those affected can expect some lead in time, the next step facing Ireland will be in determining a new higher rate of VAT.

The best outcome that could be hoped for would be that the rate is increased to 5%. However this will be problematic given that Ireland already has in place two reduced rates of VAT being 9% and 13.5%. Under European law a Member State may have no more than two reduced rates. The existing rate of 9% is currently still planned to be in existence only until the end of 2013. While this opens the possibility that a 5% rate could be introduced it is possible that the 13.5% rate would be applied.
Reply
Back to top
Jump to: