More household charges: VAT on local authority services

More household charges: VAT on local authority services

More household charges:VAT to be added to Local Authority ServicesWhile we may have a year to prepare before a property tax and water charges are introduced and in full swing by the end of 2011, 2010 is not immune and householders will not escape the brunt of more charges.

The Revenue Commissioners have asked all local authorities for a list of all goods and … services they provide to the public or to businesses at a cost, so they can be assessed for VAT at either 13.5 or 21%.

This means householders in all parts of the State who use local authority services for their waste collection are likely to face an increase in charges of up to 21%. Also included on the line up to face a hike are car parks, swimming pools, sports grounds and commercial water use.

The VAT changes are due to be included in the Finance Bill 2010 published next March or April and reports suggest that the changes are likely to be implemented by July.

Have your say

  • More Household charges: Are these proposed VAT charges on local authority services fair?
There are 24 comments for this article
  1. Car Insurance Ireland at 4:08 pm

    Tax on top of tax? I don’t know about anyone else, but my pips are already squeaking. What’s next!?

  2. Paul O’Neill at 4:04 pm

    Well done and thanks to all you frightened little people who voted in Lisbon. You were warned that the EU wanted to change our tax rates. But ye believed the politicans who conned you into thinking it wouldn’t happen, (the same crowd who have thrown the lot of our wealth of the cliffs and instead, left us with billions upon billions of debt. Now within 6 or so months the EU are at it. It is th EU who is driving this tax increase and our gov accepts it because they can’t do anything about it. You have damned us all. Thanks again.

  3. Paul O’Neill at 4:04 pm

    Well done and thanks to all you frightened little people who voted in Lisbon. You were warned that the EU wanted to change our tax rates. But ye believed the politicans who conned you into thinking it wouldn’t happen, (the same crowd who have thrown the lot of our wealth of the cliffs and instead, left us with billions upon billions of debt. Now within 6 or so months the EU are at it. It is th EU who is driving this tax increase and our gov accepts it because they can’t do anything about it. You have damned us all. Thanks again.

  4. David at 4:06 pm

    I curse the day I left Australia and the stupid misdirected nostalgia that brought me back to this corupt goobeen ridden country populated with twisty eyed bad haired politians from bog holes where cousin courtin`is still exceptable and highly prized.

  5. Gemma at 4:43 pm

    Shortcut to:
    Have a look at some of the comments on, I rate it a very good website for “the pulse of the nation”, some of it is astounding stuff! LOL

  6. Pako at 9:03 am

    Disgusting !! like there was no rain in this country for everyone !! get some smart plan on place an stop killing us with taxes !! that is ridiculous, if the money would be invested properly in smart infrastructure to store the water we would not be wasting it out to the ground. Time to collect the water in damps my dears ! we cannot pay more taxes, will have to eat toast and beans and porridge for breakfast lunch and dinner !! ah may be some potatoes !! does it bring any thoughts ?? never seen such a greedy government !!!! get out of it !!

  7. Harry at 12:18 am

    I think this is an excellent idea, after all somebody has to pay for the ‘Special Incentive Tax Rate’ that was introduced in 2000 to encourage the release of land for residential development and cost the Exchequer €800m. Sorry let me rephrase that, cost the ordinary taxpayer €800m. Who better to pay for Finna Fudge’s sly backhander to the developers that the low paid people of Ireland, not to mention the mercs and the perks for our TDs.

    Of course Biffo and the Buffoons will wash their hands and say “Oh! its not us, we don’t want to introduce VAT on the local services charges (tax) but the EU say we have to”. Well done the idiots who though Lisbon II was a good idea, remember the lies, good for Ireland and will create jobs. B0110cks.

    We need more and more taxes, just like Fina Fool did in 1980, tax the living daylights out of working people, those that have something useful to contribute to the country will leave and the country will totally collapse. Then we can get the IMF in who will do something sensible and reduce the millstone of a civil service that the ordinary working people have hanging around their necks, and with any luck reduce the number of wasters in lenister house.

  8. Vincent Mockler at 11:11 pm

    Seems that this is another increase that will affect the ordinary worker, I think any further demands on the household budget are not warranted.
    Why dont they chase the developers and bankers that got us into this mess in the first place.

  9. Rosemarie at 5:15 pm

    speaking as an expat,who hasn’t lived in Ireland for the past 20 years, i’ve spent what most people would say are the best years of my life working abroad inorder to save enough cash to buy my own home one day in Ireland,(because if i had stayed in Ireland i would probably still have my name on the waiting list for corporation housing….) but as that day starts to approach – i’m giving very serious thought to not buy at home because the govermental powers that be, are & have been screwing the nation for every penny they can get for as long as i can remember.Our forefathers who fought bitterly for our freedom are rest assured not turning but rather spinning in their graves, Ireland is already on its knees economically – what the hell is wrong with the government that they want to further tax citizens to send them nose-diving into the gutters, Irish people WAKE-UP ! & SAY NO to those robbers who line their pockets with your hard-earned salaries masked as ‘taxes’. your vote put them in -you can also oust them. What is left for the future children of Ireland I ask myself if this highway robbery continues ? I wouldn’t hold my breath as soon the ”Irish air will be taxed it seems……….My dream of having a home in Ireland will probably just remain that – a dream !

  10. JP q at 11:52 pm

    MORE CHARGES? are they really trying to kill the purchasing power of the populace? Don’t they know whilst doing these kind of scheme will make this country more bankrupt. Remember the law of supply and demand. No buyers, no sale, no supplier, no manufacturer, no tax to be collected, economic activities will cease to exist. QUO VADIS????? HIBERNIA.

  11. Pete at 9:24 pm

    I looked up the definition of “Tax” Gerry.

    “Tax: Charge against a citizen’s person or property or activity for the support of government.”

    As I said:
    First they tax us.

    Then they put tax (Value Added Tax)on the tax.

  12. Henning at 6:58 pm

    We pay several taxes for basic services – services that are necessary. With the payment/deduction of those taxes these services are already PAID. Paying additional charges is already a hidden double taxation which is ILLEGAL. Taxing illegal charges/taxes AGAIN is even MORE ILLEGAL, this is a triple taxation. This state is – quite obviously – a CRIMINAL ORGANIZATION.

  13. Kevin at 6:51 pm

    Is nobody running the show ? They want to introduce domestic water charges to help fund local authorities and now they want to levy a tax of up to 21% on local authority services, which will ensure that especially in relation to refuse collections, few(apart from those in remote locations which are the least cost effective to collect) will use the council services as they’ll be far too expensive compared to private contractors.

  14. Gin at 6:38 pm

    FF are untouchable if there was an election tomorrow they’d top the poll….. Don’t kid yourselves
    and why are the greens getting all the blame it takes two to f$$k up a country and boy are they doing a great job at it

  15. christian higgins at 3:17 pm

    Just another knife in the back to struggling families. What a time all these extra charges are coming in. Do the government think that people have majic money tree’s in their back gardens? Whats going to happen as more and more levies and extra charges are applied at will to this and that, or whatever the government can think of, and there’s just nothing left to give? We, the Irish always heard that when the British occupied Ireland under their rule that they sat on us and stunted our growth. Well look what the Irish Govt are doing to us now. Why are they still there? We need them out although it is hard to have faith that the next party would be any better. The funniest thing is the ad’s for the Financial Regulator on the tv and radio. I mean who has any faith in them now after the state the country is in? The Financial Regulator should now stand up for those who have 100% mortgages on their overpriced homes to stop banks from further ripping people off.

  16. Gerry at 3:07 pm

    Is it too much to ask that the powers that be that write these ‘blogs/emails’ actually include the full details. It might help cut down on the ranting nonsense displayed in the comments above. A quick glance at the Irish Times will give you the following information:
    “The change arises from a ruling last year in the European Court of Justice which found that Ireland was transgressing an EU directive by exempting public bodies, including local authorities, from applying VAT.”
    To the ‘only in Ireland’ brigade – obviously its not.

  17. yvonne at 3:07 pm

    disgraceful behaviour!! we have to start taking action!NO NO NO!!we cant take anymore and Biffo and Co are just taking as they please…if everyone stood together, stood their ground and refused to pay these charges(ie taxes)then they might take us seriously instead of thinking we are all ok with “doing our bit”!we have all done more than our bit…now its time our leaders,(ha!)the property developers and the banks took the responsibility that is theirs

  18. Pete at 2:29 pm

    Local Authority charges are themselves local TAXES.

    They are taxing the tax.

    What next?
    VAT on Income Tax perhaps?

    Or VAT on the VAT and on that again …… infinitum!

    Only in Ireland.

  19. Gemma at 1:18 pm

    Hear hear to all those comments above. We need a revolutionary figure to save us quickly before this government sinks us all. What were/are we paying our taxes for all these years? What didnt they upgrade our infrastructure and broadband, for instance, instead of building toll roads, sometimes through sites of national heritage and ugly appartment blocks with no architectural merit at all, blots on the landscape. Two blocks of them have been built down the road from me and they look like Albania social housing already! Private hospitals of course, are still being built (couldnt see our Minister for Health lying on a trolley in A&E, could you?). Two tier health system, two tier society, socialism bailing out capitalism, the irony of it all! Time to get out I think, I am advising my son to get his degree and get out, its a rotten country and its got worse. The only person telling the truth/asking hard questions at the moment is Vincent Brown, a wonderful man and a true socialist who keeps asking hard questions (but not to FF politians as they rarely agree to appear on his show!!)

  20. Stephen Byrne at 1:06 pm

    More disgraceful tax hikes? If it moves, tax it! Eject this government from office and never vote for a Green Party again! Green means Greed!

  21. Colm at 12:51 pm

    Total disgrace. When will this government get it into it’s head that we can’t pay any more. They tax us and tax us and tax us and at the same time the “services” they provide are being cut back. Our water is rationed and only on 12 hours a day. Our local roads look like they have been carpet bombed. One day they just stopped picking up our bin and told us to use a private company. Our local hospital has lost it’s cancer and maternity services and next to go is the A&E leaving us 90 minutes from help in the event of an accident. Half our local schools are made up of rat infested pre-fabs. The council refuse to take over the management of our estate so we have to pay a management company to run it.

    Someone needs to tell Biffo and co that social contract works both ways. If they want us to pay more they need to give more.

  22. Liam Nickles at 12:48 pm

    Simple, stop bailing out those who have made the stupid errors in judgement for their own profit. Levy the tax on them, the little people pay more than they should already.

  23. Paul O’Neill at 12:38 pm

    I don’t mind. In fact it serves us right as a group of fools. We were warned about the demise of property related wealth creation (Bertie wanted suicide) yet we couldn’t vote them in again quick enough. Just suck it up and get on with it. If we want to be treated like fools then enjoy it and stop moaning. And before ye all complain, we couldn’t all have voted for others! we need to help these bankers and developers, it’s too small a country to chase these pillars away!

  24. Daniel Duggan at 12:31 pm

    In principal VAT should be applied at a single low rate to all goods and services, even those provided by the local authorities. Of course we do not have a broad based VAT, too much is exempt and the remainder is hit with one of the world’s highest rates of VAT or sales tax. But that is a discussion for another day.

    Meanwhile…….the country is mostly broke but the people will be wrung-out for every drop of tax necessary to carry the banks and ultimately the developers through this difficult time. These two privileged groups and their political bag men need to survive so as to be in a position to in one way or another re-purchase NAMA property at a steep tax payer funded discount. The next move is to again hypnotize the public into believing that expensive property is somehow desirable and in the national interest. And I bet it will work too!

    People are so gullible, I think I’ll start a church; I’ll be a millionaire in no time!!!

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