asked the Minister for Finance if he is aware that, apart from the time spent by wholesalers in compiling, checking and recording details of VAT, the tax in question must be paid by the wholesaler at least two to three months before it can be collected from his customer; and if he will amend this regulation.
Ceisteanna—Questions. Oral Answers. - Value-Added Tax.
170.
Mr. Kenny
The value-added tax system requires all accountable traders, including wholesalers, to pay tax between the 10th and 19th day of the month following each two-months' accounting period. Having regard to the normal period of trade credit allowed by wholesalers, I do not accept that, in general, the requirements of the tax result in the position alleged by the Deputy. An amendment to the law is not contemplated.
Would the Parliamentary Secretary accept that what I indicate here is happening in many cases? Wholesalers are being asked to pay this tax two months ahead of their collecting it. Would he agree that that is an unfair imposition on those wholesalers?
Mr. Kenny
Is it not the wholesalers' fault that they cannot collect their own debts? Is that not what the Deputy means?
The position is that whether he collects the debt or not he must pay the tax, irrespective of what happens at the other destination. He must give it to you before he collects it.
Mr. Kenny
No. He must pay the tax from two to three weeks after the accounting period.
Would the Parliamentary Secretary agree that the Irish trader and businessman in this respect is at a considerable disadvantage compared with his British counterpart?
Mr. Kenny
I do not know the least thing about traders in England because I rarely trade with them. I always buy Irish.
I have no doubt about that but I am talking about the comparison between the two systems.
He does not know much about this trader either.
I would have thought that the Parliamentary Secretary to the Minister for Finance would have been thoroughly familiar with the manner in which VAT is administered in the neighbouring country because it is of vital importance to us in many respects. Would he not agree that our traders and businessmen are much more adversely treated than their counterparts in Britian in this matter of when they have to pay over the tax?
Mr. Kenny
If that is so——
The Parliamentary Secretary will change it?
Mr. Kenny
——I will convey to the Minister for Finance the Deputy's representations.
I made them during the debate on the Finance Act.