VAT on Tolls

The ECJ (European Court of Justice) recently made an decision against Revenue - VAT should not be applied to tolls on State-owned motorways. 

VAT has been applied to tolls since 2010 so a toll charge of €3.00 included VAT of €0.56 (€3.00 x 23/123) and a VAT registered customer could reclaim the VAT. From 1st April 2017, this is no longer the case.  The charge to the road user is still €3.00 but there is no VAT included.  

In summary, if you've paid tolls in your VAT registered business, and continue to do so, update your bookkeeping department.  No claiming back VAT on State-owned motorway tolls from 1 April 2017.

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