Dáil Éireann Debate, Wednesday - 24 March 2021
419. Deputy Sean Sherlock asked the Minister for Finance if his attention has been drawn to international online wine merchants advertising and importing wine to Ireland without paying excise or VAT; and if he will make a statement on the matter. [13953/21]
View answerIt is assumed that the Deputy is referring to cross-border sales of wine over the internet to consumers in Ireland. Such sales of alcohol products are referred to as “distance sales”.
Distance sales of alcohol products from one EU Member State to a consumer in another Member State are subject to VAT in the Member State of destination of the supply, which would be Ireland if the consumer is based in this State. In all such cases, the supplier of those goods is required to register in the State and account for VAT.
Specific requirements apply in relation to excise duty on the distance sales of alcohol products from another EU state to a private individual in Ireland. The vendor in the Member State of dispatch must appoint a tax representative in Ireland who must be approved by Revenue. The tax representative must provide a guarantee for the excise duty prior to the dispatch of the alcohol products and must pay the excise duty on arrival of the products at the designated address in Ireland. Failing this, liability for payment ultimately rests with the person to whom the products have been delivered in the Member State of destination.
Alcohol products ordered by persons, both business and private consumers, from suppliers established outside the EU are subject to customs duty, VAT and excise duty which are normally payable prior to the release of the goods into free circulation in Ireland.
Revenue inform me that they are very aware of the growth in business to consumer internet sales and of the risks this presents, both to tax revenues and domestic business, and that they are working continuously to strengthen their controls in this area. Revenue uses a range of measures to monitor internet retail activity directed at customers in Ireland. Revenue’s work at ports, airports and postal depots to ensure compliance is supported by equipment and resources such as scanners and x-ray machines and these are reviewed regularly in light of technological developments and operational effectiveness. Revenue’s overall approach to managing compliance is to undertake a range of targeted interventions that are most appropriate for dealing with the specific risks presented in individual cases – including internet sales. Their work is also supported and enhanced with appropriate technology, including their Risk Evaluation Analysis and Profiling (REAP) risk identification system and capture of data from multiple sources.
These compliance activities are very successful, and Revenue seizes considerable quantities of excisable and prohibited goods annually in the course of delivery through postal and other delivery channels.
