I propose to take Questions Nos. 279 and 280 together.
On 1 January 2015 new EU VAT rules came into effect changing the place where VAT is chargeable in respect of all supplies of telecommunications, broadcasting and electronic (TBE) services to consumers. VAT on these services is now chargeable where the consumer is located instead of where the supplier is located. This ensures that the VAT goes to the Member State where the services are used and it removes the incentive for these businesses to locate themselves in low-VAT rate Member States.
As a result of the change, EU and non-EU businesses are required to register and account for VAT in every Member State in which they supply TBE services to consumers or, alternatively, to avail of the optional special scheme known as the Mini One Stop Shop (MOSS). MOSS is a simplification scheme that allows a business engaged in TBE supplies to register in a single Member State, to file a single quarterly return and pay its VAT liability for all Member States through a web portal in the Member State of registration. This enables suppliers to avoid having to register and account for VAT in all the Member States to which they make TBE supplies. Transitional rules for the period 2015-2018 provide that the Member State of registration may retain a percentage of the VAT collected for other Member States, with the retention percentage being 30% in 2015 and 2016 and 15% for 2017 and 2018. Therefore the final retention fee payment in respect to VAT retained by Ireland from VAT revenues collected in respect of supplies to other Member States through the MOSS system for 2018 will be received in Quarter 1 2019.
Regarding Question 20237-17, I am informed by Revenue that the amount of VAT received between January and March 2017 in respect of electronic services provided to customers resident in other EU Member States is provided in the table.
As the majority of MOSS returns and payments are received on a quarterly basis in the following month where the quarterly period has ended, the amounts collected under the MOSS system in April 2017 is not available at this time.
The total VAT collected by Revenue on behalf of other Member States in respect of supplies to the MOSS system is not included in the Exchequer Returns as Ireland is only entitled to retain a percentage of this VAT according to the EU VAT rules. Ireland’s retention fee for Quarter 1 2017 will be included in the Exchequer Returns for May 2017.
As regards Question 20238-17, I am informed by the Revenue Commissioners that it is difficult to reliably estimate the amount of VAT retained by Ireland for 2017 and 2018 because business models can change and businesses can opt out of the MOSS system and register for VAT locally in other Member States. Based on trends so far this year, the amount retained by Ireland could be around €240 million in 2017. However, it is too soon to know whether this pattern will continue.
|
Month
|
Country
|
Amount Received (€m)
|
Amount Retained (€m)
|
Amount Due (€m)
|
|
Jan
|
AT
|
7.0
|
0.0
|
0.0
|
|
Jan
|
BE
|
8.7
|
0.0
|
0.0
|
|
Jan
|
BG
|
0.5
|
0.0
|
0.0
|
|
Jan
|
CY
|
0.3
|
0.0
|
0.0
|
|
Jan
|
CZ
|
2.2
|
0.0
|
0.0
|
|
Jan
|
DE
|
61.5
|
0.0
|
0.1
|
|
Jan
|
DK
|
12.5
|
0.0
|
0.0
|
|
Jan
|
EE
|
0.3
|
0.0
|
0.0
|
|
Jan
|
EL
|
2.3
|
0.0
|
0.0
|
|
Jan
|
ES
|
15.2
|
0.0
|
0.0
|
|
Jan
|
FI
|
4.1
|
0.0
|
0.0
|
|
Jan
|
FR
|
48.0
|
0.0
|
0.1
|
|
Jan
|
GB
|
113.4
|
0.1
|
0.3
|
|
Jan
|
HR
|
0.6
|
0.0
|
0.0
|
|
Jan
|
HU
|
1.8
|
0.0
|
0.0
|
|
Jan
|
IT
|
21.6
|
0.0
|
0.0
|
|
Jan
|
LT
|
0.4
|
0.0
|
0.0
|
|
Jan
|
LU
|
0.3
|
0.0
|
0.0
|
|
Jan
|
LV
|
0.4
|
0.0
|
0.0
|
|
Jan
|
MT
|
0.2
|
0.0
|
0.0
|
|
Jan
|
NL
|
14.7
|
0.0
|
0.0
|
|
Jan
|
PL
|
4.1
|
0.0
|
0.0
|
|
Jan
|
PT
|
2.3
|
0.0
|
0.0
|
|
Jan
|
RO
|
1.4
|
0.0
|
0.0
|
|
Jan
|
SE
|
16.4
|
0.0
|
0.0
|
|
Jan
|
SI
|
0.3
|
0.0
|
0.0
|
|
Jan
|
SK
|
0.8
|
0.0
|
0.0
|
|
Jan Total
|
|
341.3
|
0.2
|
0.6
|
|
Feb
|
AT
|
0.0
|
2.0
|
5.0
|
|
Feb
|
BE
|
0.0
|
2.5
|
6.2
|
|
Feb
|
BG
|
0.0
|
0.2
|
0.4
|
|
Feb
|
CY
|
0.0
|
0.1
|
0.2
|
|
Feb
|
CZ
|
0.0
|
0.6
|
1.6
|
|
Feb
|
DE
|
0.1
|
17.5
|
44.0
|
|
Feb
|
DK
|
0.0
|
3.7
|
8.9
|
|
Feb
|
EE
|
0.0
|
0.1
|
0.2
|
|
Feb
|
EL
|
0.0
|
0.7
|
1.6
|
|
Feb
|
ES
|
0.0
|
4.4
|
10.8
|
|
Feb
|
FI
|
0.0
|
1.2
|
2.9
|
|
Feb
|
FR
|
0.2
|
13.9
|
34.1
|
|
Feb
|
GB
|
0.1
|
32.2
|
81.1
|
|
Feb
|
HR
|
0.0
|
0.2
|
0.4
|
|
Feb
|
HU
|
0.0
|
0.5
|
1.3
|
|
Feb
|
IT
|
0.0
|
6.3
|
15.3
|
|
Feb
|
LT
|
0.0
|
0.1
|
0.3
|
|
Feb
|
LU
|
0.0
|
0.1
|
0.2
|
|
Feb
|
LV
|
0.0
|
0.1
|
0.3
|
|
Feb
|
MT
|
0.0
|
0.1
|
0.2
|
|
Feb
|
NL
|
0.1
|
4.2
|
10.4
|
|
Feb
|
PL
|
0.0
|
1.2
|
2.9
|
|
Feb
|
PT
|
0.0
|
0.7
|
1.7
|
|
Feb
|
RO
|
0.0
|
0.4
|
1.0
|
|
Feb
|
SE
|
0.0
|
4.8
|
11.6
|
|
Feb
|
SI
|
0.0
|
0.1
|
0.2
|
|
Feb
|
SK
|
0.0
|
0.2
|
0.6
|
|
Feb Total
|
|
0.5
|
97.9
|
243.4
|
|
Mar
|
AT
|
0.0
|
0.0
|
0.0
|
|
Mar
|
BE
|
0.0
|
0.0
|
0.0
|
|
Mar
|
BG
|
0.0
|
0.0
|
0.0
|
|
Mar
|
CY
|
0.0
|
0.0
|
0.0
|
|
Mar
|
CZ
|
0.0
|
0.0
|
0.0
|
|
Mar
|
DE
|
0.2
|
0.0
|
0.1
|
|
Mar
|
DK
|
0.0
|
0.0
|
0.0
|
|
Mar
|
EE
|
0.0
|
0.0
|
0.0
|
|
Mar
|
EL
|
0.0
|
0.0
|
0.0
|
|
Mar
|
ES
|
0.0
|
0.0
|
0.0
|
|
Mar
|
FI
|
0.0
|
0.0
|
0.0
|
|
Mar
|
FR
|
0.1
|
0.0
|
0.2
|
|
Mar
|
GB
|
0.3
|
0.0
|
0.0
|
|
Mar
|
HR
|
0.0
|
0.0
|
0.0
|
|
Mar
|
HU
|
0.0
|
0.0
|
0.0
|
|
Mar
|
IT
|
0.0
|
0.0
|
0.0
|
|
Mar
|
LT
|
0.0
|
0.0
|
0.0
|
|
Mar
|
LU
|
0.0
|
0.0
|
0.0
|
|
Mar
|
LV
|
0.0
|
0.0
|
0.0
|
|
Mar
|
MT
|
0.0
|
0.0
|
0.0
|
|
Mar
|
NL
|
0.0
|
0.0
|
0.1
|
|
Mar
|
PL
|
0.0
|
0.0
|
0.0
|
|
Mar
|
PT
|
0.0
|
0.0
|
0.0
|
|
Mar
|
RO
|
0.0
|
0.0
|
0.0
|
|
Mar
|
SE
|
0.0
|
0.0
|
0.0
|
|
Mar
|
SI
|
0.0
|
0.0
|
0.0
|
|
Mar
|
SK
|
0.0
|
0.0
|
0.0
|
|
Mar Total
|
|
0.9
|
0.0
|
0.5
|
