Vol. 401 No. 4
85 Mr. Cosgrave asked the Minister for Finance the agreements which have been reached between the EC states regarding the sale of motor vehicles, both new and secondhand, and the exceptions which have been granted to Ireland.
I understand the Deputy is referring to the tax approximation programme for the completion of the EC Internal Market.
The Council of Finance Ministers agreed last November that the purchases in another member state of vehicles liable for registration will be subject to VAT in the country of destination at the latter country's rate of VAT. The precise operational arrangements for the new regime have still to be finalised as part of the overall framework for 1993. The proposed arrangement is envisaged for general application in the EC. No other agreements have yet been reached in relation to VAT or excise duty on motor vehicles under the tax approximation programme, on which discussions are proceeding.
