Róisín Shortall (Dublin North West, Social Democrats)
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137. To ask the Minister for Finance further to Parliamentary Question No. 226 of 1 February 2017, the steps he will take to ensure that the correct money due is paid in a timely fashion; and if he will make a statement on the matter. [15964/17]

Michael Noonan (Limerick City, Fine Gael)
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As I informed the Deputy in response to Parliamentary Question number 71 of 23 March 2017, on 1 January 2015 new EU VAT rules came into effect changing the place of supply in respect of all supplies of telecommunications, broadcasting and electronic (TBE) services to consumers, from the place where the supplier is located to the place where the consumer resides. The VAT Mini One Stop Shop (MOSS), which is an optional scheme, also came into operation on 1 January 2015 allowing business to submit returns and pay the relevant VAT due to EU Member States through the web portal of one Member State, instead of having to register for VAT in multiple Member States.

I am informed by the Revenue Commissioners that the amount of VAT collected on behalf of and subsequently remitted to each EU Member State is in accordance with EU rules governing the place of supply of TBE services and is paid in a timely fashion.

The apparent underpayment highlighted by the Deputy is in fact a transitional feature of the changeover to the new VAT rules, whereby the Member State which collects the VAT can retain a proportion of the VAT due to other Member States for a set period.  When the scheme to tax TBE services in the place of the consumer was agreed, it was decided to provide that 30% of the monies collected under MOSS would be retained by the Member State of the supplier in 2015 and 2016; 15% would be retained in 2017 and 2018, before transitioning to a full transfer of funds under MOSS from 2019 on. In 2016, for example, the amount of VAT remitted to other Member States in relation to TBE services was the total amount of VAT collected on behalf of other Member States minus the retention fee of, at that time, 30%.