Written answers

Tuesday, 24 November 2009

9:00 pm

Photo of Joe BehanJoe Behan (Wicklow, Independent)
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Question 185: To ask the Minister for Finance if his attention has been drawn to the fact that coal is being sold in many parts of the country by suppliers from Northern Ireland; if he is satisfied that the required VAT is being levied on all such sales; and if he will make a statement on the matter. [43080/09]

Photo of Brian Lenihan JnrBrian Lenihan Jnr (Dublin West, Fianna Fail)
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The Value-Added Tax treatment of intra-EU cross-border sales of goods depends on the VAT status of both the supplier and the customer. Where a UK VAT-registered supplier sells goods, including coal, to a VAT-registered customer in this state the transaction is not subject to UK VAT and the Irish customer must self-account for Irish VAT, which in the case of coal is at 13.5%. If a UK VAT-registered supplier sells goods to unregistered customers here the UK supplier must charge UK VAT on these supplies where the total of the supplies is less than €35,000 in a year. Where the total value of supplies by a UK VAT-registered supplier to unregistered customers in Ireland exceeds €35,000 in a year the UK VAT-registered supplier must register and account for Irish VAT on all such supplies.

In addition, the EU VAT Directives provide that any VAT registered trader who exports goods to a VAT registered person in another Member State must complete a VIES Statement detailing all the VAT registered customers in other Member States to whom he/she has supplied goods in respect of which that customer is liable for payment of the VAT due. The VIES Statements form the basis of compliance programmes in Member States. Council Directive 2008/8/EC (amending Directive 2006/112/EC) provides for the more frequent filing of VIES Statements and provides that traders may submits Statements on a quarterly or monthly basis. The increased frequency of filing the VIES Statements will further counter instances of potential evasion of VAT.

I am informed by the Revenue Commissioners that the issue of coal supplies by UK suppliers to Irish customers has been the subject of compliance enquiries in Revenue Regions. It has also been brought to the attention of Revenue's Investigation & Prosecution Division who conducted enquiries with their counterparts in Northern Ireland. The current position is that significant infringements of VAT legislation have not been identified. However, the risks of non-compliance in this area are being kept under continuous review.

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