Written answers

Thursday, 21 September 2017

Photo of Michael McGrathMichael McGrath (Cork South Central, Fianna Fail)
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73. To ask the Minister for Finance the estimates of VAT foregone in 2016 and to date in 2017 by online retailers from outside the EU that sell online through companies (details supplied); the actions taken by his Department and the Revenue Commissioners to prevent this; and if he will make a statement on the matter. [40071/17]

Photo of Paschal DonohoePaschal Donohoe (Dublin Central, Fine Gael)
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I am advised by Revenue that estimates are not available of the VAT foregone by online retailers from outside the EU that sell online through internet trading platform companies.

Ireland is discussing these issues bi-laterally with a number of Member States and also centrally at EU level at European Council working party level and through an eCommerce Committee. Research and investigations are ongoing.

VAT fraud is complex and tackling this fraud requires a range of responses including legislative change, administrative initiatives, the exploitation of IT systems and analytics, multi-agency cooperation and information sharing with other Member States. 

Revenue has introduced a significant body of VAT legislation aimed at combatting VAT evasion in various Finance Acts since 2012. This includes joint and several liability provisions where a supply or series of supplies is linked to VAT fraud, new requirements to keep additional records or to issue certain documents to customers, and the power to notify suppliers that a VAT number has been cancelled.

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