Written Answers. - VAT Rates.
Noel Ahern
Ceist:
85
Mr. N. Ahern
asked the
Minister for Finance
if he will give details for the most recent year available of total VAT collected; the amount collected under each VAT rate; the VAT bands Ireland is authorised to move within by the EU; the plans, if any, he has to reduce these rates; the rate on utilities such as electricity, gas and telephone services; the way in which these rates compare with our EU partners; if other countries have these services in the top band; and if he will make a statement on the matter.
[23974/99]
I am informed of the following by the Revenue Commissioners. The total amount of VAT collected in 1998, net of repayments was £4,266 million. The amount collected for the 21% standard rate was £2,718 million and for the 12.5% reduced rate was £1,646 million and there is a negative figure of £98 million in respect of the farmers flat rate. These are rounded figures, based on estimates derived from trading details supplied by VAT registered traders. The negative figure for the farmers flat rate reflects the net effect of the VAT yield on livestock, greyhounds and the hire of horses, offset by the amount of credit claimed under the flat rate scheme by VAT registered customers such as co-ops or meat factories in respect of participating unregistered farmers.
The standard rate must be a minimum of 15%. In the context of the most recent Council Directive (99/49/EC) on the standard rate, member states undertook to use their best efforts to avoid widening the current span of ten percentage points above the lowest standard rate applying in the different member states.
Member states have the option of applying one or two reduced rates, subject to a minimum of 5% to a specified list of goods and services. As a transitional arrangement, member states have the option of applying a "parking rate" which must be one of the reduced rates and must be at least 12% to items which were on a reduced rate on 1 January 1991, but which were not on the reduced rate list. Member states have the option of retaining the zero rates they had in force on 1 January 1991. If items are moved from the zero rate, a minimum rate of 5% would have to be applied, although a reduced or standard rate could also apply.
The reduced rate of 12.5% applies to electricity and gas, while telephone services attract the standard 21% rate.
The following rates based on information available to the Revenue Commissioners, apply in EU member states in respect of electricity, Portugal (5%), Luxembourg (6%), Greece (8%), Italy (10%), Germany (16%), Spain (16%), Netherlands (17.5%), Austria (20%), Belgium (21%), Finland (22%), Sweden (25%), Denmark (25%). France applies both 5.5% and a standard rate of 20.6% while the UK applies 5% with a standard rate of 17.5%.
The following rates apply to EU member states in respect of gas. Luxembourg (6%), Greece (8%) , Italy (10%), Germany (16%), Spain (16%), Portugal (17%), Netherlands (17.5%), Austria (20%), Belgium (21%), Finland (22%), Sweden (25%) Denmark (25%). France applies both 5.5% and a standard rate of 20.6%, while the UK applies 5% for domestic consumers and a standard rate of 17.5%.
The following rates apply to EU member states in respect of telephone services. Austria (10%), Luxembourg (15%), Germany (16%), Spain (16%), Portugal (17%), Netherlands (17.5%), UK (17.5%), Greece (18%), Italy (20%), France (20.6%), Belgium (21%), Finland 22%), Sweden (25%) Denmark (25%).
These rates must be seen in the context of rate structure in each member state. In particular most member states do not have zero rates for food for example, allowing lower standard rates.
Any changes to VAT rates is a matter for consideration in the context of the forthcoming budget.
