Gerry Adams
Question:56. Deputy Gerry Adams asked the Minister for Finance the VAT and other taxes or duties that apply in respect of the selling of coffins within the State. [7144/14]
View answerWednesday, 12 February 2014
Questions (56, 57, 58, 59, 60)
Gerry Adams
Question:57. Deputy Gerry Adams asked the Minister for Finance the VAT and other taxes or duties that apply in respect of undertakers within the State and the purchase of coffins. [7145/14]
View answerGerry Adams
Question:58. Deputy Gerry Adams asked the Minister for Finance the VAT or any other taxes or duties payable on the importation of coffins from Northern Ireland. [7146/14]
View answerGerry Adams
Question:59. Deputy Gerry Adams asked the Minister for Finance if his Department has carried out any investigation into allegations of non-payment of VAT, tax or other duties on the sale of coffins from Northern Ireland or outside the EU. [7147/14]
View answerGerry Adams
Question:60. Deputy Gerry Adams asked the Minister for Finance the checks that are carried out to ensure that all VAT, taxes or other duties on the sale or purchase of coffins are properly collected. [7148/14]
View answerWritten answers
I propose to take Questions Nos. 56 to 60, inclusive, together.
The supply of coffins within the State is liable to VAT at the standard rate, which is currently 23%. However, the supply of a coffin by a funeral undertaker as part of a funeral service is exempt from VAT. Funeral undertaking includes transportation of the body before and after it has been placed in the coffin, organisation of the funeral, organisation of the grave opening, embalming services, supply of a coffin or an urn, management and use of funeral homes, provision of hearses and conveyances for mourners and provision of ancillaries such as wreaths and flowers. All of these items will be included in the funeral account issued by the undertaker to the family of the deceased. Where a business is exempt from VAT this means that they do not charge VAT on the supply of their services but also means they cannot claim VAT deductibility on their business inputs. In the case of funeral undertakers, they will be charged VAT on some of their business inputs, such as coffins, urns, wreaths and flowers, but they are not entitled to recover the VAT paid on those items.
Where a funeral undertaker makes intra-Community acquisitions of goods, including coffins, from suppliers in other EU Member States, including Northern Ireland, and the value of the acquisitions exceeds a threshold of €41,000 in any 12 month period, that undertaker must register and self-account for Irish VAT at the standard rate on the coffins acquired. Where a funeral undertaker's intra-Community acquisitions is less than the €41,000 threshold, the suppliers in the other EU Member States should charge VAT at the appropriate VAT rate in their Member State on their supplies to that undertaker. The VAT rules in relation to intra-Community acquisitions and thresholds are contained in the VAT Directive with which Member States must comply. In addition, suppliers of goods to taxable persons in other Member States must provide details of such supplies of goods on periodic VIES returns, details of which are supplied to the Member State in which the taxable person acquiring the goods is established.
With regard to allegations of non-payment of VAT on the acquisition of coffins from Northern Ireland or outside the EU, the taxes and duties regimes are placed under the care and management of the Revenue Commissioners and my Department does not, therefore, carry out checks or investigations of the nature mentioned. As regards the allegations referred to by the Deputy, if the Deputy has information specific to tax evasion in the undertaking sector, or related sectors, I suggest that it be referred to Revenue. However, for reasons of confidentiality, I understand that Revenue will not be in a position to provide feedback on information received in relation to individual persons or businesses.
On a more general note, I am informed by Revenue that they are fully aware of the unfair competitive advantage to be gained by those businesses that do not fulfil their tax obligations. Revenue's tax compliance programmes are under constant review to ensure that they are focussed on the areas of greatest risk, including risks from the shadow/hidden economy.