Ireland in court over horse sales VAT
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.