Water charges could be subject to VAT

It is reported households will have VAT levied on their water charges once they come into force in 2015.

According to the Irish Independent, Irish Water will also be obliged to impose the tax on schools and hospitals.

This is because Local Authorities who provide the water now are exempt from charging tax under EU rules.

But, because Irish Water will be a private company, it's understood it will have to impose VAT at 13.5%.