Brendan Griffin (Kerry South, Fine Gael)
Link to this: Individually | In context | Oireachtas source

To ask the Minister for Finance if he will consider making it compulsory that VAT cannot be claimed back on services or product invoices until proof of payment is made; and if he will make a statement on the matter. [44353/12]

Michael Noonan (Limerick City, Fine Gael)
Link to this: Individually | In context | Oireachtas source

I am advised by the Revenue Commissioners that under EU and domestic VAT rules 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. The entitlement to recovery is based on the trader having a valid VAT Invoice for the business input. The entitlement is not dependent on whether the trader has paid the amount shown on the invoice. Changing the entitlement along the lines suggested by the Deputy to make it dependent on proof of payment would result in a cash-flow advantage to the Exchequer and cash-flow disadvantage to traders.