Dermot Ahern
Question:39 Mr. D. Ahern asked the Minister for Finance if he will outline the latest proposals concerning VAT collection after 1992; and if he will make a statement on the progress being made towards implementation of said proposals.
Written Answers. - Post-1992 VAT Collection.
At the end of last year, the Council of Finance Ministers agreed that, for a transitional period after 1992, exports should continue to be zero-rated and VAT should be levied in the country of consumption. Tax on goods moving from one member state to another will be levied, not as now upon importation, but on acquisition by a trader.
In May of this year, the EC Commission brought forward technical proposals as to how this system would work in the absence of customs controls. After detailed discussions in technical working groups, a consensus has emerged in favour of new arrangements to replace existing import and export formalities.
Under the new system, traders engaged in intra-Community trade will be required to submit details of their sales to their national tax administrations on a periodic basis. Details submitted will comprise, at a minimum, the VAT number of the seller, VAT numbers of the foreign buyers and the turnover of the seller with each purchaser.
These data will then be made available to the tax administrations in other member states, at whatever level of detail may be judged necessary, enabling the country of acquisition to ensure that purchases from abroad attract VAT there.
It is likely that the new arrangements will be endorsed by the Council of Finance Ministers at its meeting on 17 December next.