John Connolly (Galway West, Fianna Fail)
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50. To ask the Minister for Finance the category of taxpayer that is liable for the VAT information exchange system; the rate at which the tax is levied; whether the VIES tax collected is maintained by the Exchequer; whether there is a process for reclaiming VIES; and if he will make a statement on the matter. [34772/25]

Paschal Donohoe (Dublin Central, Fine Gael)
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I am advised by Revenue that the Irish VAT law is subject to the requirements of the EU VAT Directive with which Irish VAT law is obliged to comply. Under the Directive, VAT registered traders and certain other entities have a range of administrative obligations that concern the payment of VAT, VAT identification, invoicing, accounting for VAT, filing of VAT returns, and VAT recapitulative statements (VIES returns) amongst other obligations. These rules concern the administration of the VAT system, detailing how VAT is collected and paid and the documents / statements that are required, including the VIES return.

The VIES return is for reporting on intra-EU trade and assists in administrative co-operation and reporting across the European Union (EU) Member States. The VIES regime does not levy or facilitate the charging or reclaiming of VAT or contribute to the Exchequer.

Recapitulative statements were first introduced in 1993, following the introduction of the Single Market. Every VAT registered trader is required to submit a statement (VIES return) containing certain information of their cross-border supplies to other VAT registered customers in other EU Member States. This requirement was extended to cross border supplies of services in 2010.

Irish VAT registered traders who engage in intra-Community supplies of goods and services to VAT registered traders in other Member States are obliged to register for VIES and submit periodic statements of their intra-Community trade to Revenue. There is no threshold for registration. These periodic statements detail a range of information including VAT registrations of the supplier and customer, the details of the goods or services supplied, and the total aggregate value of the supplies made to the customer in that period. VIES statements are required to be submitted quarterly unless the supplies exceed €50,000 for goods. Suppliers of services may opt to file quarterly or monthly statements only. Where a supplier makes no supplies to other Member States in a particular period, a “Nil” statement must be submitted for that period. Traders who are only registered for a domestic VAT number are not required to make VIES returns.

The VIES regime also provides a mechanism where checks can be carried out in Member States on the validity of claims to zero-rating. It also helps detect unreported movements of zero-rated goods between Member State and enables traders to confirm the VAT registration numbers of their customers.

Further information in relation to VIES is available on the Revenue website www.revenue.ie/en/customs/businesses/importing-exporting/vies-intrastat-mutual-assistance-vima/index.aspx.

A detailed guide for traders is also available on the Revenue website www.revenue.ie/en/customs/documents/vies/vies-traders-manual.pdf