Dáil Éireann debate -
Tuesday, 4 Feb 1997

Vol. 474 No. 3

Written Answers. - VAT Liability.

Dermot Ahern

Question:

78 Mr. D. Ahern asked the Minister for Finance if the Revenue Commissioners have issued a direction in connection with the alleged liability of betting offices for VAT on satellite information services; if the Allied Betting Offices Association, or any other body on behalf of bookmakers, has had contact with the Revenue Commissioners regarding this issue; the way in which bookmakers have received unexpected demands regarding this matter; and if he will make a statement on the matter. [2935/97]

Minister for Finance (Mr. Quinn)

I am informed by the Revenue Commissioners that the question of VAT liability on services received by bookmakers from Satellite Information Services, SIS, which are based in the UK, has been under consideration for some time. The services in question are received under licence from the UK. Under EU VAT law, such services are taxable where received and are, therefore, liable here for VAT at the standard rate of 21 per cent. A final determination on the matter has not issued.

As part of a programme of information for bookmakers and in any attempt to quantify the VAT liability arising, an Inspector of Taxes arranged to visit bookmakers by appointment and discussed the matter fully with them. No formal assessments have issued to date.

Representations disputing the basis for the liability were received from one representative body who have held a meeting with the Inspector of Taxes. Other associations representing bookmakers, including the Allied Betting Offices Association, have appointed a firm of auditors to enter into discussions on their behalf with the Revenue Commissioners.

Pending the finalisation of the various issues involved, all relevant action in relation to the bookmakers has been temporarily suspended. The matter will be finalised when these discussions are completed.