Michael Kitt (Galway East, Fianna Fail)
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Question 73: To ask the Minister for Finance if arrangements are in place for tax rebates for multi-nationals who are involved in the drinks industry here; and if he will make a statement on the matter. [35730/12]

Michael Noonan (Limerick City, Fine Gael)
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I am advised by the Revenue Commissioners that there are no arrangements in place for VAT rebates for multi-nationals who are involved in the drinks industry. However, under the VAT system, as governed by the EU VAT Directive, all traders who are registered for VAT collect VAT on the goods and services that they sell. In turn such traders are entitled to recover the VAT they incur on their business inputs used in the purchase or production of goods or delivery of services. VAT is a tax on the value added to a supply and the collection and recovery of VAT takes place at each stage of the chain of supply from manufacturing to retailer. Consequently, if there is a decrease in value at any stage in the process the trader is entitled to a refund of the excess of VAT incurred over that collected.