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Ireland - New VAT rule urged to cut cost of service and goods

IRISH consumers are paying higher prices for essential goods and services than many of our European counterparts, a report claimed yesterday.



 

Published by the State agency Forfas, the report makes several recommendations it believes will help eliminate the gap between prices here and in other EU states, including the introduction of new EU VAT rules for cross-border business.

It suggests measures should be introduced to shift the place of VAT taxation to where services are consumed, scrapping the existing system which is based on the location of the supplier. It also wants an online VAT registration, declaration and refund facility for cross-border traders and a co-ordinated awareness campaign to introduce the new service.

Forfas suggests credit terms and procedures should be streamlined across the EU and measures to encourage cross-border insurance provision should be introduced.

Confidence

The report found that in addition to higher prices, Irish consumers lack confidence when it comes to cross-border transactions, possibly because adequate redress and cross-border administrative co-operation are not uniformly available.

The study also found e-commerce is not utilised to its potential.

The National Consumer Agency welcomed the report and its finding that Irish consumers have a generally positive attitude towards the single market. However, its chief executive Ann Fitzgerald said there is a lack of confidence among Irish consumers in contracting cross-border transactions, despite the growth in use of the internet.

"We have worked to communicate consumers' rights when shopping online through a national information campaign and we hope that by continuing to deliver such messages, consumers will grow in confidence in this area," she said.

Source : Irish Independent - Dublin, Ireland,  dated 15/02/2008

 

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