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What do VAT taxes pay for?

Moorhead
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What do VAT taxes pay for?

Hi-Not to sound overly virtuous or anything, but where does the money from the VAT taxes go in Ireland? If we're going to go enjoy their beautiful country and the VAT taxes help the country in some way -- like feed the hungry or house the poor -- we're thinking we might just leave that money on the table. Can the Irish people fill me in on this? Thanks!

Western Ireland...
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for Loughrea, Southport, Clifden, Connemara
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1. Re: What do VAT taxes pay for?

It is a tax like any tax in any other country. It is supposed to go into central funds and be used for the running of the country in its many guises.

In a nation taxed up to the hilt the open discussion of VAT refunds was the only time I have ever witnessed really harsh words given out in a bar to an unfortunately very loud tourist from across the big pond.

Cork, Ireland
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2. Re: What do VAT taxes pay for?

Most tax money goes into funding government services - social welfare, health, education, infrastructure. At the moment, a significant portion is going into funding the debts that we and our banks built up during the boom time.

VAT is not reserved for any specific service.

Antarctica
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for Limerick, Killarney
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3. Re: What do VAT taxes pay for?

Flyaway, if you're talking about the VAT refunds, then its only reclaimable on "export" items. You won't be able to reclaim it on accommodation, meals or anything you actually use while here. Only on items that are exported intact in their original wrapping.

If people want to help the country then encourage as many people to visit as you can. More visitors means more people employed in the services industries and this filters down to the other industries such as food, transport, even education. The more people that are working, hopefully the less people claiming welfare.

Ventry, Ireland
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for Dingle Peninsula
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4. Re: What do VAT taxes pay for?

VAT is a tax on domestic consumption. Goods exported from the country are therefore exempt, which is why tourists can reclaim the VAT on goods they take home. As Tony says it goes into the general fund along with income tax and other general taxes and duties.

Spending money is the best way help the Irish economy as it has a multiplier effect.

Edited: 23 August 2012, 08:45
Cavan
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for County Cavan
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5. Re: What do VAT taxes pay for?

Don't get me started on this, our taxes also pay our public service wage bill.

Canada
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6. Re: What do VAT taxes pay for?

It is just like the sales tax in the States and Canada. In fact you can get the taxes back when you leave Canada as well.

Moorhead
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7. Re: What do VAT taxes pay for?

We will definitely be spending money on lodging and food and drink, none of which is refundable to my understanding. And I was also hoping to do my Christmas shopping as well, so we'll be doing our part in helping the economy on that end!

There have been a lot of discussions about VAT refunds on TA. I was just wondering if Ireland as a whole would benefit if more people DIDN'T claim their VAT refunds.

My heart and head will have to battle this one out!

Thanks for the info, everyone!

Ventry, Ireland
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for Dingle Peninsula
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8. Re: What do VAT taxes pay for?

The Vat refunds to tourists are a lot less than the vat generated from tourism on food accommodation, drinks, car rental etc, and minuscule in terms of the overall VAT take, so don't worry about it

9. Re: What do VAT taxes pay for?

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