Skip to main content
Normal View

Fuel Sales

Dáil Éireann Debate, Tuesday - 19 October 2021

Tuesday, 19 October 2021

Questions (374, 375, 376)

Bernard Durkan

Question:

374. Deputy Bernard J. Durkan asked the Minister for Finance the procedure to be followed in the case in which a consumer purchases coal from Northern Ireland as advertised on social media for direct delivery to other homes throughout the country in which low smoke zones exist; and if he will make a statement on the matter. [51013/21]

View answer

Bernard Durkan

Question:

375. Deputy Bernard J. Durkan asked the Minister for Finance if solid fuel carbon tax and VAT is applicable in situations in which a purchaser or distributor imports fossil fuels from Northern Ireland for sale and distribution throughout Ireland; and if he will make a statement on the matter. [51014/21]

View answer

Bernard Durkan

Question:

376. Deputy Bernard J. Durkan asked the Minister for Finance if the purchase of coal imported from Northern Ireland requires VAT and or solid fuel carbon tax to be paid before the goods are distributed throughout Ireland; and if he will make a statement on the matter. [51015/21]

View answer

Written answers

I propose to take Questions Nos. 374, 375 and 376 together.

Solid fuel (coal and peat) is liable to excise duty in this jurisdiction in the form of Solid Fuel Carbon Tax (SFCT). SFCT is a national excise and applies at different rates to four categories of solid fuel including coal, peat briquettes, milled peat and other peat. The SFCT rate on coal, currently €88.23 per tonne, applies to all types of smokeless and “smoky” coal.  Liability to SFCT arises when solid fuel is first supplied in the State. As solid fuels are not covered by the EU control and movement regime there are no barriers or controls on solid fuels moving between Member States and Northern Ireland. The movement of solid fuel across the border into the State from Northern Ireland does not generate a liability to SFCT nor does the physical presence of solid fuel in the State. It is not until solid fuel is first supplied within the State that SFCT becomes liable.

If a solid fuel supplier based in the State  sources some or all of their solid fuel supplies from outside the State, they will be accountable for SFCT when they make first supplies in the State and must register with Revenue to account for and pay SFCT.  If a supplier based outside the State brings solid fuel into the State for supply direct to consumers they must register with Revenue for SFCT.  I am advised by Revenue that the majority of registered suppliers are importers/wholesalers and producers and approximately 5% of those registered for SFCT are based in Northern Ireland.  It is important to note that where a private individual travels to Northern Ireland to purchase solid fuel for their personal use, no SFCT is payable provided the private individual accompanies the fuel back into the State.

With regard to VAT, under the terms of the Protocol on Ireland / Northern Ireland transactions involving the movement of goods between Ireland and Northern Ireland in either direction continue to be treated as intra-Community transactions and subject to EU VAT rules. These rules apply to business to business (B2B) supplies of goods only to / from Northern Ireland to taxable persons in Ireland and other EU Member States. The goods, including fuel products, are supplied at the zero rate of VAT and the taxable person in receipt of those goods self-accounts for VAT on a reverse-charge basis and, if applicable, takes a simultaneous VAT deduction in their next VAT return. The onward distribution and sale of a fuel product to a consumer in the State is subject to the normal VAT rules and the Irish supplier is liable to account for VAT, currently the reduced rate of 13.5%, on the supply. The consideration for a supply of goods or services is defined in EU VAT law and consists of everything which the supplier is entitled to receive in return for goods or services supplied including taxes, duties, levies and charges, excluding the VAT itself. Therefore, VAT is chargeable on the solid fuel carbon tax element of fuel products.

Where a business in Northern Ireland sells goods and arranges the transport of those goods to a consumer in Ireland, such sales of fuel products are referred to as intra-Community distance sales. Intra-Community distance sales of fuel products from Northern Ireland to a consumer in a 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 such cases, the supplier of those goods is required to register, subject to a threshold, in the State and account for VAT on those supplies.

The Deputy has asked about deliveries of coal to homes throughout the country in which Low Smoke Zones exist so I am taking it that he is referring to deliveries of “smoky” coal. Certain solid fuels, primarily coal, are regulated under the Air Pollution Act (Marketing, Sale, Distribution and Burning of Specified Fuels Regulations) 2012 (SI No. 326 of 2012), as amended.  These Regulations come under the aegis of the Department of the Environment, Climate and Communications and their enforcement is a statutory function of Local Authorities. They are not matters in which Revenue has a role. My colleague, the Minister for the Environment, Climate and Communications, recently announced the development of a regional approach to air quality enforcement and new, enhanced regulations to support the introduction of new standards for solid fuels from January 2022. In response to a Parliamentary Question last week Minister Ryan outlined that Local Authorities will be responsible for enforcing the new regulations and will have significant powers available to them to enable them to do so effectively. He also advised that discussions with the Local Authority sector have commenced with the intention of establishing dedicated resources to support consistent enforcement of the new regulations across the country. The same enforcement procedures will apply to all solid fuels regardless of how they have been placed on the market in Ireland, including through online sales or other forms of advertising.

Question No. 375 answered with Question No. 374.
Question No. 376 answered with Question No. 374.
Top
Share