Tag Archive for vat irish broadband group scheme ibec

Reducing the tax on Irish Broadband

TIPPINST – The Irish Business and Employers Confederation (IBEC) have come up with a number of recommendations to stimulate broadband and pc ownership in Ireland. These include:
* Reduction of the VAT rate on broadband services from 21% to 13.5%;
* Introduction of an innovative SME broadband programme;
* Implementation an Employee PC Purchase Programme with an innovative tax model to provide wider access to technology in the home and in society;
* A full review the County and Group Broadband Scheme to ensure a more streamlined approach to broadband roll out in rural areas
I would agree with the reducing the VAT on broadband as it is more akin to a service than a product and should therefore reflect the appropriate VAT rate. Streamlining the county and group broadband scheme is also a good idea as some schemes were approved early in the Summer of 05 while the majority had to wait until Autumn 05. The more cynical people out there pointed out the relationship between the order of schemes announced and key cabinet members constituencies.
The Group broadband schemes are proving to be a success as it allows the communities and the various providers to get on with the job. One of the problems with the scheme however was that providers could not start on the roll out until approval was granted as invoices prior to the approval date would not be considered as part of the scheme. In the future issues such as this and the one mentioned above will hopefully be addressed.