Taxes Consolidation Act 1997 section 531AAI

Amount of defective concrete products levy

Section 531AAI sets out how the defective concrete products levy is calculated on the first supply of a concrete product.

• The levy is charged at 5 per cent of the VAT-exclusive open market value of the concrete product on the date of first supply.
• Ancillary costs such as delivery and haulage are excluded from the levy calculation; only the value of the concrete product itself is within scope.
• For ready to pour concrete, Revenue accepts a simplified apportionment method using a fixed average percentage to separate delivery and haulage costs from the product cost, subject to a maximum of 25 per cent for delivery and haulage.
• The levy amount is added to the product cost and VAT is then applied to the combined total of the product cost and the levy.