JUNIOR CYCLE BUSINESS STUDIES Indirect Taxes in Ireland
Value Added Tax (VAT)
VAT is charged on the price of goods and services. It is charged at different rates for various goods and services. The standard rate of VAT is 23%. A reduced rate of 13.5% is charged on items such as fuel and electricity. A lower rate of 9% was introduced by the government in July 2011 on a range of goods and services, including accommodation, restaurants and certain cultural activities.
All citizens are subject to the same rates of VAT, regardless of income. Motor Tax
Motor tax is paid annually by people who own a motor vehicle. The cost of this tax depends on a number of factors, such as engine size and C02 emissions. Local Property Tax (LPT)
Local Property Tax is charged annually on the market value of all residential properties in Ireland. It came into effect in 2013. Excise Duty
Excise duty is a tax on certain products, such as cigarettes, alcohol and petrol. Customs Duty
Customs duty is a tax collected on imports of goods bought from outside the European Union (e.g. on goods ordered online from the US).
Name that tax A 392
Go to page 224 of your Activities and Accounts Book to identify the taxes that apply to certain incomes and expenditures.
