John Perry (Sligo-North Leitrim, Fine Gael)
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Question 164: To ask the Minister for Finance if, in view of the loss of trade business by suppliers in this jurisdiction to cross-Border purchasing he will carry out a review of the control procedures in place, both here and in Northern Ireland, to prevent the use of invalid VAT registration numbers in cross-B order trade purchase transactions; and if he will make a statement on the matter. [43829/08]

Brian Lenihan Jnr (Dublin West, Fianna Fail)
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I am advised by the Revenue Commissioners that traders selling goods at zero rate of VAT to traders in other EU Member States have obligations in relation to verifying the VAT numbers of those traders. This may be done through the EU Internet website to which they have free access. Otherwise, traders leave themselves open to being held liable for the VAT on the goods if the number is invalid. Traders also have obligations in relation to justifying the application of the zero rate, that is, that the goods have left the State and are not simply re-sold in the State.

Checking the validity of VAT registration numbers, and indeed other tax compliance information, in cross Border transactions with their counterparts in Her Majesty's Revenue & Customs in Northern Ireland is part of the checks carried out by Revenue officers during audits and assurance checks where risk or suspicions arise. These checks are carried out using the EU Mutual Assistance Programme. This programme allows for exchanges of information between EU Member States in relation to VAT matters and it also allows the presence of officials from a Member State in another Member State while enquiries are being carried out. These are VAT anti-fraud measures and Ireland plays a full role in the exchange of information with all other Member EU Sates, including the UK, with whom we have a very good working relationship.

The Revenue Commissioners advise that checks of the control procedures in place between the State and Northern Ireland will continue as part of the relevant work programmes in 2009 and that they will continue to liaise, as appropriate, with the competent authorities in Northern Ireland, under the EU Mutual Assistance programme.