The Irish Government recently announced several measures, aimed to support households and businesses, in response to rising energy costs.
While an increase in carbon taxes on home heating is scheduled to come into force from 1 May 2022, amongst the measures introduced to combat increasing energy costs, is the temporary reduction in the VAT rate applicable to gas and electricity bills.
From 1 May 2022 to 31 October 2022, the VAT rate applicable on such supplies will reduce to 9% from 13.5%. Minister for Finance, Paschal Donohoe, stated that the temporary VAT rate reduction “will result in savings of over €50 on an annual gas bill and €70 euro on an annual electricity bill”.
This temporary VAT rate reduction is not extended to home heating oil, which will remain at 13.5%.
Source RSM
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