Ireland in court over horse sales VAT

IRELAND is being brought to the European Court for refusing to increase the VAT rate on the sale of horses and greyhounds, and for stud services.

The Government, which subsidised the horse and hound industry to the tune of €59 million this year, insists it is within its rights to levy VAT at 4.8% on sales of the animals. But under EU law a reduced rate of 5% can only be applied to services and goods “for clearly defined social reasons” and to benefit the final consumer.

Ireland’s rate for horses and greyhounds, which is less than a quarter of the standard rate charged for almost all goods, does not qualify, the European Commission says.