Matt Shanahan warns €75 VAT threshold will hit Waterford retail
Matt Shanahan addressed the Dáil about proposed changes in the Brexit Omnibus Bill that would set a €75 threshold for the VAT retail export scheme for non-EU passengers, arguing the change will harm local retailers. He also associated himself with comments about two families mourning missed scans and disassociated himself from recent political grandstanding.
Key concern
The recommendations to the Brexit Omnibus Bill are set to introduce a new threshold of €75 to all non-EU passengers who avail of the VAT retail export scheme, meaning travellers outside the EU would need to reach €75 to benefit from VAT relief. He argued this effectively moves the threshold from a de facto minimum amount of one cent to €75.
Impact on local retail and tourism
He warned the change will affect a significant number of retail businesses and geographic areas, citing his county of Waterford where bus tourists and cruise visitors purchase Waterford Crystal, Woolen's Craft and traditional gifts and mementos. He said the measure would remove nearly 60 per cent of all US customer sales for Waterford Crystal and have a similar effect across the South and West Coast.
Request to the Taoiseach
He asked the Taoiseach to examine the measure and consider other enforcement options that would address the underlying problem without imposing the proposed threshold on retailers. He urged reconsideration of the approach to avoid damaging local businesses.
Government response noted
The Taoiseach replied that the threshold had been at a much higher level of €175 and that the Minister for Finance brought in amendments to reduce it to €75. He said a threshold is required from an administrative perspective, that the decision is informed by revenue's assessment of volume and data, and that the Minister would keep the matter under review.
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As a new TD to the 33rd Royal Concola, I would like to associate myself to comments regarding two families who are in mourning over missed scans today, and I would like to disassociate myself from some of the political grandstanding that has taken place here in the last few minutes. These recommendations to the Brexit Omnibus Bill are set to introduce a new threshold of €75 to all non-EU passengers who avail of the VAT retail export scheme enabling travellers outside the EU to benefit from VAT relief on goods purchased in the state and brought outside the EU. This proposal will, in effect, move the threshold from a de facto minimum amount of one cent to €75. In my county of Waterford, bus tourists and cruise visitors avail of this battery base when purchasing Waterford Crystal, Woolen's Craft and traditional gifts and mementos. This tax change is going to affect a significant number of retail businesses and geographic areas. For Waterford Crystal, it will remove nearly 60 per cent of all US customer sales and will have a similar effect across the South and West Coast. I ask you, Taoiseach, I think this has been done in terms of trying to solve a problem in terms of UK visitors, and I would ask that you look at this measure, please, and see some other enforcement that will get started. Thank you very much, Taoiseach. Briefly, please. To be fair, that was at a much higher threshold of €175, and the Minister for Finance brought in amendments to bring it down to €75, and there will be need for a threshold from an administrative perspective. And that's informed by revenue, and revenue's assessment of the volume and the data, and so on. So, I have no doubt the Minister will keep this under review, but he has brought it down significantly from where it was. Thank you Taoiseach, the Deputy Matty McGrath. Thank you. For now, what is my last question?
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