Paul Murphy (Dublin South West, Socialist Party)
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328. To ask the Minister for Finance if he is aware of the practice in many airports of passengers en route to duty free destinations, and able to avail of duty free shopping, being charged prices in shops at the full VAT inclusive price (details supplied); if there are VAT returns made for duty free purchases; if the Revenue Commissioners have any concerns about this practice; and if he will make a statement on the matter. [31187/15]

Michael Noonan (Limerick City, Fine Gael)
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I am advised by the Revenue Commissioners certain retail outlets operating at Irish airports may apply the zero rate of VAT to retail sales of goods to passengers travelling to destinations outside the European Union. This is allowed under paragraph 7 of Schedule 2 of the Value-Added Tax Consolidation Act 2010. All goods supplied to other travellers are liable to Irish VAT at the appropriate rates.

Not all retail outlets are allowed to operate the scheme.  This is subject to an application, vetting and approval process. Revenue approval is only granted where there is a robust sales system in place to ensure the zero-rated sales to customers travelling outside the European Union are clearly identified. The approved retailer is required to retain evidence, such as the boarding pass and flight details, produced by passengers travelling to non-EU destinations and the approved retailer must retain this detail in electronic format for future examination by Revenue, if required.

The single pricing structure mentioned by the Deputy has been brought to my attention previously. Under the single pricing structure all travellers pay the single price but approved retailers do not charge VAT on sales to identified non-EU travellers.  I would point out that the pricing structure in any business is a commercial decision for the business and not a Revenue matter. Revenue's focus is to ensure that approved retailers comply with their VAT obligations.

I would point out that the information furnished to Revenue on VAT returns does not require the yield from particular activities to be separately identified. The amount of VAT collected in respect of airport based retailers cannot be identified in the overall yield of VAT.