Dáil Éireann Debate, Thursday - 29 November 2012
55. Deputy Sandra McLellan asked the Minister for Finance if he will consider changing the VAT system so that the VAT is paid by companies and not passed on to the consumer; and if he will make a statement on the matter. [53405/12]
View answerVAT is a tax on the value added to a supply of goods and services, and the collection and recovery of VAT takes place at each stage of the distribution chain of supply. In the end, VAT is borne by the final consumer in the form of a percentage addition to the final price of the goods or services. VAT is governed by the EU VAT Directive, with which Irish VAT law must comply. It is not possible under EU VAT law to provide that VAT is paid by companies and not the final consumer.
