Dáil Éireann - Volume 585 - 18 May, 2004

Written Answers. - Tax Code.

  153. Mr. S. Power asked the Minister for Finance if businesses from Northern Ireland working here are operating VAT free (details supplied); and if he will make a statement on the matter. [14181/04]

  Mr. McCreevy:I am informed by the Revenue Commissioners that section 8(1) of the VAT Act 1972, as amended, provides that traders who supply taxable goods or services within the State in the course or furtherance of business are obliged to register and account for Irish VAT, subject to the appropriate turnover thresholds. Foreign firms, not established in Ireland, which are involved in supplying goods or services here are generally obliged to register, charge and account for Irish VAT regardless of turnover.

In certain circumstances, and where the Irish customer is registered for VAT, the foreign trader may not be required to register for VAT, and the Irish customer will account for the VAT on the transaction. In any event VAT must be accounted for on all taxable transactions in the State carried out by foreign traders. An information leaflet, VAT information leaflet No. 1/99, on the subject of the VAT treatment of foreign firms doing business in Ireland is [1277] available on the Revenue website at www.revenue.ie.

If the Deputy is aware of traders who are not complying with the VAT legislation, he should contact Revenue so that the matter can be investigated.

  154. Mr. Allen asked the Minister for Finance if the Revenue Commissioners will register the English Market in Cork for VAT by concession in order that the lessees of the market be able to reclaim the VAT portion of the service charges being charged to them. [14188/04]

  Mr. McCreevy:The administration of VAT is a matter in the first instance for the Revenue Commissioners. The question raised by the Deputy is being examined by their Cork office. However, it is not considered appropriate to comment publicly on the tax affairs of a company where that company is identifiable and a reply will issue to the Deputy on this matter as quickly as possible.