Pearse Doherty
Question:332. Deputy Pearse Doherty asked the Tánaiste and Minister for Finance the options in relation to VAT on petrol and diesel; and if he will make a statement on the matter. [28774/26]
View answerTuesday, 21 April 2026
Questions (332)
Written answers
The EU VAT Directive, which Irish VAT law must comply, generally holds that all goods and services are liable for VAT at the standard rate which must be set at a minimum of 15%. If a good or service is listed under Annex III, a reduced rate or exemption from VAT may be applied.
In addition, Member States may apply up to two reduced rates of at least 5% for goods that are listed under Annex III of the Directive. Ireland currently applies a reduced rate of 13.5% and a second reduced rate of 9%.
As fuel is not included in Annex III it is not possible under the VAT Directive to apply a reduced or zero rate to it.
Member States found to be in breach of the VAT Directive are open to investigation and infringement proceedings from the European Commission.