Paul Kehoe (Wexford, Fine Gael)
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Question 265: To ask the Minister for Finance if VAT charged here to mobile telephone calls made and completed or initiated in another State is illegal; and if he will make a statement on the matter. [23833/05]

Brian Cowen (Laois-Offaly, Fianna Fail)
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The position is that the charging of VAT on mobile telephone calls made and completed or initiated in another state is covered by section 5(5) of the Value Added Tax Act 1972, as amended, which transposes Article 9(1) of the sixth Council directive. This provides that VAT is charged in the place of establishment of the supplier.

Therefore, Irish suppliers of mobile phone services are liable to account for VAT on services provided to business and private customers, established or resident in the State, for their usage of those services anywhere in the world. Accordingly, the charging of VAT on mobile telephone calls made and completed or initiated in another state is not illegal.