asked the Minister for Finance whether foreign buyers are entitled to claim back the flat-rate VAT rebate on livestock which they purchase from farmers who are not registered for VAT within the Republic of Ireland.
56.
Written Answers. - VAT Rebates.
55.
asked the Minister for Finance if he has any knowledge of Northern buyers purchasing cattle via companies which were established in the Republic with the sole purpose of claiming VAT rebates from the Irish Exchequer, to which they were not entitled.
57.
asked the Minister for Finance whether he has satisfied himself that the VAT rules are being fully implemented; and whether the system of rebates is not being abused to the detriment of the Irish taxpayer and companies engaged in the Irish meat processing industry.
58.
asked the Minister for Finance the amount of money paid by the Irish Government to Northern livestock buyers in 1987 in the form of flat-rate VAT rebates.
I propose to take Questions Nos. 55, 56, 57 and 58 together.
Under the VAT regime which applies to farmers in Ireland sales of livestock may be subject to either the flat-rate addition of 1.4 per cent where the farmer is not registered for VAT or the equivalent livestock rate where the seller is VAT-registered. The flat-rate addition system does not apply to direct sales of livestock by unregistered farmers to foreign buyers so the question of a VAT repayment to such buyers does not arise.
Where livestock are sold by registered persons to foreign buyers the tax charge of 1.4 per cent is refundable to the foreign buyer subject to certain conditions. This is in line with the VAT provisions applicable to businesses generally under EC rules. I am advised by the Revenue Commissioners that the amount of such refunds to foreign livestock buyers in 1987 was £1.4 million. The greater part of this sum is estimated to have been paid to buyers established in Northern Ireland.
As regards abuse the Revenue Commissioners have advised me that they are not aware of any abuses of the type referred to by the Deputy. If, however, the Deputy has information concerning any such abuses, the commissioners have assured me that they will investigate the matter if he would be good enough to provide them with the necessary details.