Eamon Ryan (Dublin South, Green Party)
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Question 24: To ask the Minister for Finance the way in which €200 million in VAT returns have been lost to the Exchequer through food sales in canteens. [2595/05]

Brian Cowen (Laois-Offaly, Fianna Fail)
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The figure of €200 million VAT referred to in the Deputy's question appeared in the newspapers on 21 January 2005 describing the outcome of a European Court of Justice, ECJ, case involving a Swedish company which was about to provide subsidised meals to its employees. The ECJ advised the Swedish authorities that in their circumstances, VAT would be chargeable only on the price paid by employees for the subsidised meals. Ireland's position is not the same as that of Sweden. The charging rules in Ireland are based on a different provision of the sixth VAT directive than that at issue in the Swedish case. Ireland's rule is that the taxable amount in respect of subsidised canteens is the cost of providing the meals or the price paid by the employees, whichever is the greater. I am not aware of any basis for the figure of €200 million quoted in the newspapers which assumes the Swedish case is a precedent for Ireland.