Brian Hayes MEP for Dublin today welcomed new EU VAT measures which mean that Irish consumers buying goods and services from an online vendor in another European country will pay VAT at Irish rates. The measures came into force on 1st January.
“Previous rules meant that Irish consumers who buy online from a European vendor had to pay VAT in the country of the vendor but this has changed from January 1st. As a net recipient of online services, Ireland stands to win big over the next number of years – it is estimated that Ireland will gain VAT revenues of €100m in 2015, rising to €150m in 2019,” said Mr. Hayes.
“E-commerce has been growing substantially in recent years and it is crucial that our government ensures that we develop our VAT system in line with growing international trends in technology.”
“The new VAT rules ensure that there will be more competition with other EU Member States. Online trading firms will no longer be able to use countries like Luxembourg for their low VAT rates.”
“Ireland’s position as a hub for international technology firms means that we could potentially be the go-to location for non-resident European companies to register VAT sales to other European countries.”