John Bruton
Question:30 Mr. J. Bruton asked the Minister for Finance the implications of tax free Internet shopping for the tax base and for retail patterns; and if he will set up an interdepartmental study of the matter. [17302/99]
Vol. 510 No. 4
30 Mr. J. Bruton asked the Minister for Finance the implications of tax free Internet shopping for the tax base and for retail patterns; and if he will set up an interdepartmental study of the matter. [17302/99]
In this country, there is no such thing as tax free Internet shopping. Given the growing economic importance of e-commerce for all business activity not least for retail sales, taxation policy requires that most transactions will be subject to taxation. It would be unfair and uncompetitive if e-commerce transactions did not attract taxes while conventional business and retail activity continued to be taxed.
The current tax rules and systems, particularly VAT, are therefore applied in as far as possible to e-commerce transactions with the aim of ensuring neutrality of transactions whether carried on by e-commerce or more traditional methods.