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The Human Cost of VAT
Case Study
The Multiple Sclerosis Society of Ireland
Michael Dineen
MS Society – Brief Background
• MS Ireland was founded in 1961 by Dr. Robert Brian Pringle.
• The Society exists to facilitate People with Multiple Sclerosis, to control their lives and environment, to live with dignity and participate in the community.
• MS Ireland offers services to people with MS through it’s network of voluntary branches and through its full-time staff at the National Office and in the Regions
National MS Care Centre
• The national MS care centre opened in 1989 and after additional development work in 2001/2002 now provides 12 bedrooms for short-term respite care and therapy services to people with multiple sclerosis and other neurological conditions
National MS Care Centre
Bushy Park Road, Rathgar
VAT on capital expenditure
• Care centre development
• Proposed new Resource Centre
Cost of recent development, extension and refurbishment at the
Care Centre Net VAT
Building costs € 2,115 K € 265 K
Consultancy € 408 K € 85 Kfees etc Total VAT cost € 350 K
Proposed new Resource Centre
at Northumberland Road Costs are VAT inclusive
New premises € 2.15 m
Refurbishment &consultancy costs € 1.55 m
Total projected costs € 3.70 m
VAT Bill on Resource Centre refurbishments»
• VAT on building refurbishments € 162,000 @ 13.5%
• VAT on Design,Planning and Other Fees @ 21% € 32,000
• Total VAT Bill € 194,000
VAT on annual Administration Costs
•The Care Centre
• Head Office/Resource Centre
Annual VAT cost of running the Care Centre
2001 € 10,500
2002 € 22,000
2003 ( Estimated ) € 25,000
Annual VAT on MS Society costs
2001 € 183,000
2002 € 200,000
2003 ( Estimated ) € 220,000
Summary of VAT Costs Building care centre
VAT on Building costs € 265,000VAT on consultancy fees etc € 85,000
Running costs - 2002 Care centre € 22,000 Head office € 200,000
Sub-total € 572,000
Potential cost re new Resource Centre € 194,000
Total Vat cost € 766,000
Impact of the cost of VAT• Instead of providing urgently needed
services,€ 766,000 goes to the government coffers. This is wrong!!
• MS Ireland could use this money to: -– Improve community services– Increase counselling services– Provide additional informational
publications
IN CONCLUSION
MS Ireland calls on the government to
give us our VAT back!