County Councils and other public bodies now have to charge VAT

Published on Fri 30 of Jul, 2010
The Revenue Commissioners released eBrief no. 56/10

VAT and Public Bodies

The Finance Act 2010 brought a range of activities of public bodies within the scope of VAT from 1 July 2010. The Revenue Commissioners engaged in a detailed process of engagement with public bodies to ensure they were VAT compliant from 1 July.
Two documents:
Indicative List of VATable Income Sources and Rates
and
Guidance Note
draw together the conclusions of Revenue's engagement with the public bodies. The Guidance Note deals in detail with the treatment of property sales and the sale of graves.

It does mean that businesses will now be charged VAT on certain transactions they were not charged for before, but businesses can claim back this VAT. You will need to make sure you get an invocei with a VAT breakdown as some items are exempt, some are 13.5% and some are 21%.

These changes in VAT are to ensure that public bodies do not have an advantage over commercial businesses but ensuring that both the public bodies and commercial service providers both now charge VAT. Before this change the public bodies did not have to charge any VAT and this put them at a price advantage over a commercial business providing the same service and charging VAT.




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