I am informed by the Revenue Commissioners that VAT returns do not require the yield from a particular sector or sub-sector of trade to be identified. The figures provided in this reply for VAT receipts are estimates of the amount of VAT yield that would be generated by the volume of clearances of Auto Diesel and Petrol from January to April 2010. The estimated VAT gain is as follows:
Petrol
|
2010
|
|
€m
|
Jan
|
0.7
|
Feb
|
0.4
|
Mar
|
1.5
|
Apr
|
2.6
|
Total
|
5.2
|
Auto Diesel
|
2010
|
|
€m
|
Jan
|
0.0
|
Feb
|
0.0
|
Mar
|
0.1
|
Apr
|
0.3
|
Total
|
0.5
|
VAT returns can be made monthly, bi-monthly, quarterly, half yearly or annually depending on the nature of the registration status of a trader, and this will dictate the point in time when VAT on sales will actually be paid. It should also be noted that the VAT content of purchases of Auto Diesel is a deductible credit for business in the Irish VAT system.
While the VAT from Petrol and Auto-Diesel increases as the price of the fuels increase, it should however be borne in mind that to the extent that spending in the economy is re-allocated to petrol and other oil products, and away from other VAT liable spending, and to the extent that the overall level of economic activity is reduced by higher oil prices, there may be little or no net gain to the Exchequer.