Mattie McGrath (Tipperary South, Independent)
Link to this: Individually | In context | Oireachtas source

161. To ask the Minister for Finance if he will support a proposal to rejuvenate e-commerce in rural areas, that is, that all Irish online businesses, in communities under 1,000 persons, have a reduced value added tax rate of 10% applied to their online sales; if not, the reason for same; and if he will make a statement on the matter. [17683/15]

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

VAT is governed by the EU VAT Directive, with which Irish VAT law must comply.  The VAT Directive provides that the supply of goods and services by taxable persons is subject to VAT at rates specified in the VAT Directive. 

Member States must apply a standard VAT rate of between 15% and 25% to the majority of economic activity.  In Ireland the standard rate is 23%, and under the VAT Directive any reduction in this rate would necessarily apply to all activity at that rate.  It is also possible for Member States to apply up to two reduced rates of between 5% and 15% on goods and services as specified in the VAT Directive.  Ireland applies two such reduced rates of 9% and 13.5%, however most of the activity at the 13.5% rate applies under a derogation of the VAT Directive that states they must apply at a rate of 12% or more.

There is no provision under the VAT Directive to apply a reduced rate of 10% to online sales for businesses in communities under 1,000 persons as proposed by the Deputy.