Neale Richmond (Dublin Rathdown, Fine Gael)
Link to this: Individually | In context | Oireachtas source

281. To ask the Minister for Finance if his attention has been drawn to companies in the European Union opting to not deliver their goods, including alcohol, to Ireland due to additional taxes being applied to goods entering Ireland; the reason additional charges would be levied on goods moving from the European Union area into Ireland that would not be charged to other European Union countries; and if he will make a statement on the matter. [52875/21]

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

I am advised by Revenue that no additional taxes are being applied to goods entering Ireland from other Member States so this cannot be the reason why any company would opt not to deliver their goods here.

From 1 July 2021, significant changes came into force across the EU in the way VAT operates for cross border business-to-consumer (B2C) e-commerce activities. These changes apply in all Member States and their purpose is to facilitate cross-border online sales.

One aspect of the changes was to remove the advantage that non-EU businesses previously enjoyed in not having to charge VAT on certain sales into the EU; since 1 July, the EU has abolished the low value consignment VAT relief on imports valued up to €22. This means that all goods imported into any country in the EU are now subject to VAT. The current customs duty exemption for goods imported into the EU up to an intrinsic value of €150 remains unchanged.

To ease the compliance burden for businesses, the 1 July changes introduced a new scheme, the Import One Stop Shop (IOSS). This allows businesses that are selling goods that originate from outside the EU to declare the import VAT due through a monthly return in the Member State where they have registered for the scheme. If the business has not registered for the Import One Stop Shop (IOSS), the consumer must pay the VAT on these goods before they are released. This scheme applies to imported goods, excluding goods subject to excise duty, where the intrinsic value of the consignment does not exceed €150.

Also, from 1 July, the distance selling thresholds of €35,000 or €100,000 have been lowered. Where a business in any Member State supplies goods to a consumer in another Member State, they must now charge local VAT in the Member State to which the goods are delivered, subject to a €10,000 EU-wide threshold. Again, the new rules on intra-Community distance sales of goods are common to all EU Member States and are applied in the same way by all Member States.

With regard to Excise Duty on cross-border sales, Revenue advise that this is payable on alcohol and tobacco products and must be paid before the goods are dispatched. National rates of excise duty apply to alcohol and tobacco products being brought into Ireland for consumption here. Value-Added Tax (VAT) is generally payable on excisable products.

There is a long-standing, common EU administrative regime governing the movement of excisable products, such as alcohol, between Member States and their tax treatment on arrival in the destination Member State. Each Member State sets its own rates of excise and, when excisable products are moved between Member States, excise is payable in the country where the product will be consumed and at the rate applicable in that country. Responsibility for the payment of excise duty at prevailing rates on those products falls to either the seller’s agent in the destination Member State or, if no agent has been appointed, by the person who receives the products. When ordering excise products from another Member State, purchasers should check that the seller has arranged to pay excise duty in Ireland. Where the seller has not done so, the purchaser should contact their Revenue office to arrange payment. In the case of a duty-suspended commercial movement, the person who subsequently releases the products for consumption is responsible for payment of the excise duty. These are, and have always been, key features of excise that are common to all Member States.