Kevin Humphreys (Dublin South East, Labour)
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79. To ask the Minister for Finance if VAT applies to products os sale in duty free areas in Irish airports; the taxation and regulations that apply in these areas; and if he will make a statement on the matter. [22059/13]

Michael Noonan (Limerick City, Fine Gael)
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I am advised by the Revenue Commissioners that all goods sold and supplied in duty free areas in Airports to passengers travelling to destinations outside the EU are zero rated for VAT purposes in accordance with paragraph 3 of Schedule 2 of the Value-Added Tax Consolidation Act 2010 and are exempt from excise duty in accordance with section 77 of the Finance Act 2005. There are restrictions, such as 200 cigarettes and 1 litre of spirits, on the quantity of excisable goods that can be supplied duty free to such passengers. All goods supplied to other travellers, including travellers to other EU countries, are liable to excise duty and Irish VAT at the appropriate rates. Shops in airports, handling intra- and extra-EU flights need to distinguish, in sales and accounting, between sales to passengers travelling to destinations outside the EU (duty free) and sales to passengers travelling to other EU member states (duty paid). The determination of whether a sale is duty free or not is made at the point of payment, that is, at the till, where the passenger’s boarding pass or ticket will provide the necessary evidence.