Irish Taxation Institute: Educating, Developing and Representing

VAT eBrief No 48/10 - VAT deductibility on supply of public housing

30 June 2010

Following an ECJ case in 2009 local authorities and public bodies must charge VAT on certain supplies. Finance Act 2010 introduced an obligation to account for VAT on a range of supplies from 1 July 2010. The Minister for Finance has announced that he intends to bring forward legislative changes in Finance Bill 2011 to deal with the VAT treatment of housing supplied by public bodies, including local authorities, after 1 July 2010, which was acquired or developed by them before that date, and where there was no entitlement to deductibility on VAT inputs. A transitional VAT adjustment measure is being introduced.  More details on this measure are available here