Catherine Murphy (Kildare North, Social Democrats)
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66. To ask the Minister for Finance the way in which VAT is calculated on unredeemed gift vouchers; if a calculation has been done on VAT foregone; if so, the amount for 2016; and if he will make a statement on the matter. [53530/17]

Paschal Donohoe (Dublin Central, Fine Gael)
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As a consumption tax, VAT is a tax that is paid by the final consumer on the purchase of a good or service. Where a gift voucher is used by a consumer as consideration in respect of or in relation to the purchase of a good or service, VAT becomes chargeable on that purchase at the rate applicable for the particular good or service supplied, which could be 0%, 9%, 23%, or no VAT if an exemption applies. No loss of VAT arises where gift vouchers are not redeemed as no supply of goods or services has taken place.

Revenue has no estimate of the amount of VAT that would accrue to the Exchequer if unredeemed gift vouchers were in fact used.