I am advised by Revenue that where a business is established in the State and supplies goods online to Irish customers VAT is chargeable at the same rate as applies to the sale of similar goods in a shop. In general, sales of goods by traders in other EU member states to Irish customers are subject to the same rate of VAT as domestic sales of goods where the value of the sales to Irish customers by that trader exceeds the Irish distance-selling threshold of €35,000 in any year; otherwise the VAT rate applicable in that EU trader’s Member State applies. Equally, Irish traders selling goods to private customers in other EU Member States may apply Irish VAT unless they exceed the distance selling threshold for that Member State. Subject to certain exclusions, goods purchased online and imported from non-EU countries are subject to Customs duty and VAT at the point of importation. The rate of VAT is the same as if that good had been supplied in the State.
As the Deputy may be aware, an exemption from VAT already exists for small business who sell goods. Where their turnover does not exceed or is unlikely to exceed €75,000 in any continuous 12-month period, they are not required to register for VAT or charge VAT on their supplies.
It is important to note that any reduction in VAT rates incurs a cost to the exchequer, which would necessitate recovery elsewhere.