Michael Collins
Ceist:291. Deputy Michael Collins asked the Minister for Finance if he will address a matter (details supplied) regarding the application of VAT; and if he will make a statement on the matter. [7732/22]
Amharc ar fhreagraTuesday, 15 February 2022
Ceisteanna (291)
Freagraí scríofa
I am advised by Revenue that for goods being imported from a non-EU country into the State, VAT is payable at point of importation. Imported goods are liable to VAT at the same rate as applies to similar goods sold within the State. They also require a Customs import declaration which is made using Revenue’s Customs Automated Import System (AIS). VAT registered traders may take credit for VAT paid on goods imported for the purposes of their business. This credit must be claimed in their VAT return in the taxable VAT period concerned.
To avoid payment at point of import, Postponed Accounting for VAT on imports is available to traders that are registered for VAT and Customs and Excise. The trader needs to fulfil certain conditions and the importer should enter a code on the import declaration indicating that they are using Postponed Accounting. This code will allow the VAT on import liability to be accounted for by the importer in their next VAT Return.
From 1 July 2021, the VAT de minimis of €22 was removed across the EU, meaning all goods imported into the EU are liable for VAT. These new VAT rules, which apply in all EU Member States, ensure that goods imported from outside the EU no longer have a preferential VAT treatment compared to goods purchased from within the EU, including from Irish retailers.
I am further advised by Revenue that a zero rate of VAT applies to exports which for VAT purposes, are goods directly dispatched to a destination outside the EU VAT area including Great Britain. Traders must ensure that the goods have left the EU and have evidence of export. In addition, each export requires a Customs export declaration. The declaration is submitted electronically using Revenue’s Automated Entry Processing (AEP) System. This declaration forms part of the proof required to be able to fully deduct any receivable VAT, that was paid in a previous related transaction leading up to the export, within the return for the VAT period concerned.