Ireland loses EU VAT case
Friday July 17, 2009
Ministers in Ireland have been criticised by the European Court of Justice (ECJ) for failing to properly implement VAT legislation in the country.
The country’s government has lost a case related to its failure to make the certain operations of public bodies, including local councils, subject to the rate of tax.
A complaint about the issue arose over the fact public authorities did not need to charge VAT on parking fees, which private firms are forced to do.
Niall Campbell, global head of indirect tax at KPMG, told Business & Leadership: "The decision will impact on a range of sectors and entities, both private and state sector.
"Examples include car parking, waste management, leisure facilities and property letting. Irish law will have to be amended, which is likely to occur in the next finance bill."
The Leitrim Observer recently claimed that retailers in Ireland would like to see VAT in the country reduced.