HC Deb 22 February 1978 vol 944 cc675-6W
Mr. Banks

asked the Chancellor of the Exchequer on which services rendered for overseas companies an 8 per cent. VAT rate is levied; what is his estimate of the likely effect of this raising of costs; and what is the estimated revenue produced in a full year.

Mr. Robert Sheldon

Under the EEC Sixth Directive on VAT, which was implemented in the United Kingdom on 1st January 1978, various services relating to land and goods situated overseas, to goods for export, and other services supplied to persons outside the United Kingdom, or in some cases only outside the EEC, are zero-rated. This covers the bulk of services which can be regarded as exported from this country, but it is not possible to estimate the revenue produced by those services which are not covered by the zero-rating authorised by the Sixth Directive.

Mr. Tim Renton

asked the Chancellor of the Exchequer whether he will publish in the Official Report the amount of VAT collected in the year 1976–77 from companies in the following categories, and the cost of collection per individual category: companies with an annual turnover between £7,501 and £10,000; £10,001 and £15,000; £15,001 and £20,000; and £20,001 and £25,000, respectively.

Mr. Robert Sheldon

Such information as is available about the net tax paid by companies in bands of taxable turnover is published in table 49 on page 107 of the report of the Commissioners of Her Majesty's Customs and Excise for the year ended 31st March 1977. There is a copy in the Library of the House.

I regret that the information asked for about the cost of collection for different categories of companies is not available but the total cost of administering VAT

The figures for 1977–78 have now been updated to the mid-year using the figure of earnings in October 1977 and are as follows:

in 1976–77 was about 2.1p for every £1 of revenue collected.