Michael Moynihan (Cork North West, Fianna Fail)
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241. To ask the Minister for Finance with value added tax of 23% currently payable on all broadcasting and electronic services provided to consumers of digital content, if he has examined allocating value added tax receipts accruing to the Exchequer to fund public broadcasting and digital content; if he has had discussions with the Department of Communications, Energy and Natural Resources concerning this; and if he will make a statement on the matter. [24768/15]

Michael Noonan (Limerick City, Fine Gael)
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In general I am not in favour of hypothecation of taxes as it constrains the Government's scope on expenditure decisions and can distort the allocation of resources. Therefore, I have not examined allocating Value Added Tax receipts accruing to the Exchequer to fund public broadcasting and digital content. Similarly, I have not discussed this issue with the Department of Communications, Energy and Natural Resources.

Michael Moynihan (Cork North West, Fianna Fail)
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242. To ask the Minister for Finance if he will provide the monthly breakdown of the value added tax receipts, on all broadcasting and electronic services provided to consumers of digital content, that accrued to the Exchequer in 2015; and if he will make a statement on the matter. [24769/15]

Michael Noonan (Limerick City, Fine Gael)
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On 1 January 2015, new EU VAT rules came into effect changing the place where VAT is chargeable in respect of all supplies of telecommunications, broadcasting and e-services to consumers.  VAT on these services is now chargeable where the consumer is located instead of where the supplier is located.  This ensures that the VAT goes to the Member State in which the services are used. 

As a result of the change, businesses are required to register and account for VAT in every Member State in which they supply such services to consumers or, alternatively, to avail of the optional special scheme known as the Mini  One Stop Shop (MOSS).  The MOSS scheme is a simplification scheme which allows a business engaged in those supplies to register in a single Member State, to file a single quarterly return and pay its VAT liability for all Member States through a web portal in the Member State of registration.  The return details and payments are transferred by the Member State of registration to the relevant Member States of consumption with the Member State of registration retaining a percentage of the VAT collected.  The percentage retained is 30% during 2015/6 and 15% during 2017/8.

Businesses are not obliged to use the MOSS scheme.  Some account for VAT through the normal domestic VAT return which may include both Business to Business supplies and Business to Consumer supplies.   Therefore, it is not possible, without more detailed analysis, to assess the full impact of the changes.  However, I am advised that the total VAT received from other Member States through the MOSS scheme in relation to supplies to consumers in Ireland for Q1 2015 is €8.4m. The total amount retained by Revenue from VAT collected on behalf of other Member States in relation to Q1 2015 is €25.9m.