Tax Data

Tuesday, 3 March 2026

Questions (355, 356, 357, 358, 359, 360, 361, 362)

Pa Daly

Question:

355. Deputy Pa Daly asked the Tánaiste and Minister for Finance the estimated revenue foregone if the VAT rate for electricity was set at 0%, in each of the years 2020 to date, in tabular form. [16993/26]

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Pa Daly

Question:

356. Deputy Pa Daly asked the Tánaiste and Minister for Finance the estimated revenue foregone if the VAT rate for gas was set at 0%, in each of the years 2020 to date, in tabular form. [16994/26]

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Pa Daly

Question:

357. Deputy Pa Daly asked the Tánaiste and Minister for Finance the estimated revenue foregone if the VAT rate for electricity was set at 0% for domestic customers only, in each of the years 2020 to date, in tabular form. [16995/26]

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Pa Daly

Question:

358. Deputy Pa Daly asked the Tánaiste and Minister for Finance the estimated revenue foregone if the VAT rate for gas was set at 0% for domestic customers only, in each of the years 2020 to date, in tabular form. [16996/26]

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Pa Daly

Question:

359. Deputy Pa Daly asked the Tánaiste and Minister for Finance the amount of revenue that has been earned through the VAT on electricity, in each of the years 2015 to date. [16997/26]

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Pa Daly

Question:

360. Deputy Pa Daly asked the Tánaiste and Minister for Finance the amount of revenue that has been earned through the VAT on gas, in each of the years 2015 to date. [16998/26]

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Pa Daly

Question:

361. Deputy Pa Daly asked the Tánaiste and Minister for Finance the amount of revenue that has been earned through the VAT on electricity on domestic bills only, in each of the years 2015 to date. [16999/26]

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Pa Daly

Question:

362. Deputy Pa Daly asked the Tánaiste and Minister for Finance the amount of revenue that has been earned through the VAT on gas on domestic bills only, in each of the years 2015 to date. [17000/26]

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Written answers

Tánaiste and Minister for Finance

I propose to take Questions Nos. 355, 356, 357, 358, 359, 360, 361 and 362 together.

In relation to the Deputy's questions regarding the estimated revenue foregone if the VAT rate for electricity and gas was set at 0% I am advised by Revenue that the VAT treatment of goods and services is subject to EU VAT law, with which Irish VAT law is required to comply.

In general, the VAT Directive provides that all goods and services are liable to VAT at the standard rate unless they are exempt from VAT or fall within Annex III of the Directive, in which case lower VAT rates may apply subject to certain rules. On this basis, Ireland applies the second reduced rate, 9%, to the supply of gas for domestic or industrial heating or lighting and electricity since 1 May 2022 and this is currently due to run until 31 December 2030. Prior to 1 May 2022, the second reduced rate of 13.5% applied to these supplies. It is not possible, under the Directive, to apply the zero rate of VAT to the supply of gas or electricity.

In relation to the Deputy's other questions I am informed by Revenue that traders are not required to separately identify the VAT from specific goods and services on their periodic VAT returns. Therefore, it is not possible to provide the VAT collected on the supply of electricity and gas using taxpayer information alone.

However, using Revenue data from electricity and natural gas carbon tax returns, alongside third-party data from the CSO (Personal Consumption Expenditure) and SEAI (Energy Usage), a tentative estimate of VAT collected on the supply of electricity and gas for both domestic customers and VAT-exempt non-residential customers (customers that do not charge VAT on the supply of their exempt goods or services and that cannot reclaim VAT on their purchases or expenses connected with their exempt activities) for the years 2015 to 2025, and a year-to-date estimate for 2026 (January and February), is presented in the table below.

VAT Receipts €m	Electricity	of which Domestic	Gas	of which Domestic
2015	330	241	90	72
2016	319	233	86	69
2017	310	226	85	69
2018	342	250	102	83
2019	331	242	101	83
2020	361	264	101	82
2021	409	298	101	82
2022*	475	347	125	101
2023	497	363	171	137
2024	401	293	150	120
2025	399	290	146	117
2026	72	53	38	30

*VAT was reduced from 13.5% to 9% on May 1st, 2022, for electricity and gas supplies.

Question No. 356 answered with Question No. 355.

Question No. 357 answered with Question No. 355.

Question No. 358 answered with Question No. 355.

Question No. 359 answered with Question No. 355.

Question No. 360 answered with Question No. 355.