Michael McGrath (Cork South Central, Fianna Fail)
Link to this: Individually | In context | Oireachtas source

160. To ask the Minister for Finance if persons who are registered for VAT and pay their VAT to the Revenue Commissioners by credit card should now not incur a surcharge for this payment; and if the Revenue Commissioners, therefore, should not be passing on such a charge to persons, in view of the new EU payment services directive now in force; and if he will make a statement on the matter. [4225/18]

Paschal Donohoe (Dublin Central, Fine Gael)
Link to this: Individually | In context | Oireachtas source

Section 960EA of the Taxes Consolidation Act 1997 provides that transaction costs incurred in respect of the necessary service providers for credit card transactions, i.e. merchant acquirer services and technical connection support can be passed to the taxpayer.

The Revenue Commissioners has advised me that the biggest portion of the current 1.1% charge applied to credit card transactions relates to the costs imposed, on Revenue, by these service providers, which are not covered by the EU payment services directive. It is also important to note that the new EU legislation only relates to domestic or intra-EU consumer credit cards. It does not include any commercial or international credit cards, which are often used for tax payment. 

Revenue has confirmed that it reviews the transaction charge in February each year, to ensure it is reduced to the greatest extent possible. Over the last number of years the charge has been reduced from 1.69% to 1.49% and to its current rate of 1.1%. The charge will be reviewed in the coming weeks and any possible reductions, including in the context of the EU payment services directive, will be passed on to taxpayers.

Finally, Revenue has confirmed that it does not charge any fees in respect of debit cards, which are by far the most popular card payment option.