Get the app today! App Store Play Store

DublinTown Calls For E-Commerce VAT Enforcement On Foreign Sites

Published on Aug 16 2019 2:53 PM in Technology tagged: E-Commerce / DublinTown / Budget Submission

DublinTown Calls For E-Commerce VAT Enforcement On Foreign Sites

DublinTown has called on the Government to enforce VAT compliance on e-commerce purchases from foreign sites, highlighting that a lack of enforcement is putting Irish retailers at a considerable disadvantage.

In its pre-budget submission, DublinTown suggested that VAT rates should be reduced to bring them in line with those across Europe.

This would include a standard rate of VAT set at 20%, while services related VAT, including VAT on the hospitality sector, should be reduced to 10%.

The submission went on to say that the income from this levy should be used to enhance the public transport and to invest in cycle and pedestrian infrastructure.

Disadvantaged

CEO of Dublin Town, Richard Guiney, said that Irish traders are already at a big enough disadvantage, given Ireland’s high VAT rates.

“However, they are further impacted by the reality that the majority of online shopping is done on foreign sites, and although VAT should be charged on these purchases at the point of entry, in reality, this doesn’t happen,” Guiney explained.

“We are calling on the Government to ensure there is a level playing field for Irish retailers to be able to compete online.”

Guiney added that problems with the rental market are having knock-on effects on two fronts for retail and hospitality businesses, as younger people are spending so much of their income on rent, it has led to the 25-35-year-old demographic spending less on other things.

© 2019 Checkout – your source for the latest Irish retail news. Article by Aidan O’Sullivan. Click sign-up to subscribe to Checkout.

Share on Facebook Share on Twitter Share on LinkedIn Share via Email