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VAT Yield

Dáil Éireann Debate, Tuesday - 13 February 2018

Tuesday, 13 February 2018

Ceisteanna (134, 135)

Joan Burton

Ceist:

134. Deputy Joan Burton asked the Minister for Finance the VAT received by the Revenue Commissioners in respect of electronic services provided to unregistered customers resident in other EU states (details supplied) in each of the months between January 2017 and January 2018, inclusive, in tabular form; and if he will make a statement on the matter. [7036/18]

Amharc ar fhreagra

Joan Burton

Ceist:

135. Deputy Joan Burton asked the Minister for Finance if he has revised the expected gain to the Exchequer in 2018 arising out of the right to retain a proportion of the VAT paid on certain services provided to unregistered customers in other member states, which has been assumed in his Department's estimates of tax yield for 2018, in view of the recent statement by a person (details supplied) expecting growth of around 90% in cloud services; and if he will make a statement on the matter. [7037/18]

Amharc ar fhreagra

Freagraí scríofa

I propose to take Questions Nos. 134 and 135 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.

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.

I am informed by the Revenue Commissioners that the following table provides an overview of the VAT collected, amount retained and the VAT remitted to each Member State from 1 January 2017 to 31 December 2017. Information for January 2018 is not yet available as these returns are not due until April 2018.

Small variations may be observed between the actual sums collected, retained and remitted due to rounding. Some of these values are provisional and may be subject to future revision.

EU Member State

Gross VAT Received

Amount Retained

VAT remitted

€million

€million

€million

Q1 2017

Q2 2017

Q3 2017

Q4 2017

Q1 2017

Q2 2017

Q3 2017

Q4 2017

Q1 2017

Q2 2017

Q3 2017

Q4 2017

Austria

6.9

7

6.6

7.3

2

1

1

1

4.9

5.9

5.6

6.2

Belgium

8.7

9

8.8

9.5

2.5

1.3

1.3

1.4

6.1

7.7

7.5

8.1

Bulgaria

0.5

0.6

0.6

0.6

0.2

0.1

0.1

0.1

0.4

0.5

0.5

0.5

Croatia

0.6

0.7

0.9

0.9

0.2

0.1

0.1

0.1

0.4

0.6

0.7

0.7

Cyprus

0.3

0.4

0.3

0.4

0.1

0.1

0.1

0.1

0.2

0.3

0.3

0.3

Czech Republic

2.2

2.4

2.4

2.7

0.6

0.3

0.3

0.4

1.6

2

2

2.3

Denmark

12.6

13.2

13.6

14.3

3.7

2

2

2.1

8.9

11.3

11.6

12.2

Estonia

0.3

0.4

0.4

0.4

0.1

0.1

0.1

0.1

0.2

0.3

0.3

0.4

Finland

4.1

4.3

4.1

4.6

1.2

0.6

0.6

0.6

2.9

3.7

3.5

4

France

48.2

53.1

52.8

55

13.9

7.6

7.6

8

34.3

45.5

45.1

47

Germany

61.7

62.6

59.8

65.8

17.5

8.9

8.5

9.2

44.1

53.7

51.3

56.5

Greece

2.3

2.3

2.5

2.4

0.7

0.3

0.4

0.4

1.6

2

2.1

2

Hungary

1.8

1.9

2

2.2

0.5

0.3

0.3

0.3

1.3

1.6

1.7

1.9

Italy

21.6

23.4

23.1

23.1

6.3

3.4

3.4

3.4

15.4

20

19.7

19.8

Latvia

0.4

0.4

0.4

0.4

0.1

0.1

0.1

0.1

0.3

0.3

0.3

0.4

Lithuania

0.4

0.4

0.4

0.4

0.1

0.1

0.1

0.1

0.2

0.3

0.3

0.4

Luxembourg

0.3

0.7

0.9

0.9

0.1

0.1

0.1

0.1

0.2

0.6

0.7

0.8

Malta

0.2

0.3

0.3

0.3

0.1

0

0

0

0.2

0.2

0.2

0.3

Netherlands

14.8

16

15.8

17.4

4.3

2.3

2.3

2.5

10.5

13.7

13.5

14.9

Poland

4.1

4.2

4.4

4.7

1.2

0.6

0.6

0.7

2.9

3.6

3.9

4

Portugal

2.3

2.6

2.7

2.8

0.7

0.4

0.4

0.4

1.6

2.2

2.3

2.4

Romania

1.4

1.4

1.4

1.6

0.4

0.2

0.2

0.2

1

1.2

1.2

1.3

Slovakia

0.8

0.8

0.8

0.9

0.2

0.1

0.1

0.1

0.6

0.7

0.7

0.8

Slovenia

0.3

0.4

0.4

0.4

0.1

0.1

0.1

0.1

0.2

0.3

0.3

0.4

Spain

15.2

17.1

17.8

17.8

4.4

2.5

2.5

2.6

10.8

14.7

15.3

15.2

Sweden

16.4

17.1

16.7

18.7

4.8

2.5

2.4

2.7

11.6

14.7

14.3

16

United Kingdom

113.8

122.2

116.7

119

32.4

17.5

16.6

17

81.5

105

100.1

102.1

In relation to Question 7037-18, regarding the potential growth in cloud computing services as highlighted by the Deputy, MOSS accounts for VAT that is chargeable on business to consumer supplies. VAT on intra-community business to business supplies are accounted for though the normal reverse charging mechanism within each EU Member State. The information furnished by traders on MOSS returns does not require the yield from a particular TBE service to be separately identified. It is therefore not possible to determine the potential additional yield from the supply of cloud computing services to consumers in other EU Member States.

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