Dáil Éireann Debate, Thursday - 24 May 2018
34. Deputy Jan O'Sullivan asked the Minister for Business, Enterprise and Innovation if she has had discussions with the Minister for Finance and-or on a European level on fair taxation of imported goods that are being purchased over the Internet by consumers in direct competition with retailers operating in cities and towns here; and if she will make a statement on the matter. [22624/18]
Amharc ar fhreagraWith the increase in digitisation and internet developments, consumers are enabled to make purchases of goods from across the world that can be delivered to their doorstep. Through initiatives such as on-line vouchers, we encourage Irish based retailers to take advantage of the opportunities presented so that they too can tap into markets further afield.
Concerns have recently been raised relating to taxation of online activities in the Retail Consultation Forum chaired by Minister Breen. Whilst I have not engaged directly with the Minister for Finance or on a European level on this topic, I have been advised that proposals for Modernising VAT on e-Commerce were adopted in December 2017. These proposals should go some way to addressing issues raised by changing the method of charging VAT on business-to-consumer cross border supplies.
These proposals aim to:
- address the imbalance whereby lower value goods that are being imported into the EU are exempt from VAT.
In addition, the proposals will make large online marketplaces responsible for:
- ensuring VAT is collected on sales on their platforms that are made by companies in non-EU countries to EU consumers.
These changes will come into force in 2021.
