Jackie Cahill (Tipperary, Fianna Fail)
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163. To ask the Minister for Finance if a ban on the below invoice cost selling of alcohol would result in an increase in VAT revenues; if it is within his power to cease the practice of below invoice cost selling; if it is possible through secondary legislation to cease the practice of below invoice cost selling; and if he will make a statement on the matter. [8266/19]

Paschal Donohoe (Dublin Central, Fine Gael)
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Where a retailer is in a situation of net VAT gain as a result of below cost selling, this is not a loss to the Exchequer or an additional benefit to the retailer, it is merely how VAT is charged.

VAT is a tax on the value added to a supply, and the collection and recovery of VAT takes place at each stage of the chain of supply from manufacturing to retailer. Under EU and domestic VAT rules, traders who are registered for VAT collect VAT on the goods and services that they sell. In turn, such traders are entitled to recover the VAT they incur on their business inputs used in the purchase or production of goods or delivery of services. Consequently, if there is a decrease in value at any stage in the process the trader is entitled to a refund of the excess of VAT incurred over that collected.