Neale Richmond (Dublin Rathdown, Fine Gael)
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182. To ask the Minister for Finance if VAT can be offset in tax returns in a case (details supplied); and if he will make a statement on the matter. [51821/21]

Paschal Donohoe (Dublin Central, Fine Gael)
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Following the withdrawal of the UK from the European Union, goods moving into this country from Great Britain are treated as imports from a third country, i.e. from outside the EU. I am advised by Revenue that, where goods are imported into Ireland from a third country like Great Britain, the importer is required to complete a customs declaration and pay customs duty, if applicable, and VAT. Under customs law, VAT at import is chargeable on the customs value of the goods; usually this will be the purchase price, plus the cost of transport and insurance, plus any customs duties payable.

The VAT treatment of agents depends on their legal status. In general, where an agent is the de facto importer of the goods, then the agent is responsible for the payment of the VAT on imports. In such a case, the agent may qualify to use the Postponed Accounting arrangements which were introduced under last year’s Brexit Act. These new rules allow an accountable person to self-account for VAT on imports on their normal VAT3 Return. The benefit of this is that instead of having to pay VAT up-front at the time of importation, the accountable person may wait until they are making their VAT3 return and, subject to the usual rules on VAT deductibility, they can reclaim VAT at the same time as it is declared. The Postponed Accounting arrangements are intended to alleviate cash flow issues where VAT-registered businesses might otherwise have to pay import VAT at the point of importation of goods and then wait until their next VAT return is filed before they could recover the VAT.

I am advised by Revenue that different procedures are in place for agents who are not the importer of the goods. I would recommend that the taxpayer uses the MyEnquiries facility within the Revenue Online Service (ROS) to confirm the appropriate tax treatment that applies to their particular circumstances. Further information is also available on the Revenue website.