§ Mr. Brandon-Bravoasked the Chancellor of the Exchequer (1) what are the present practices of each EEC member state in regard to value added tax collection at point of importation; and if he plans any changes in these arrangements which might assist the United Kingdom's indigenous manufacturing base;
(2) if he will take steps to bring the United Kingdom practice in regard to value added tax collection at the point of importation in line with that of the major trading partners in the EEC.
§ Mr. HayhoeThe United Kingdom, the Benelux countries and — to a limited extent — Ireland allow importers registered for VAT to account for the tax due at importation in their periodic VAT returns. The remaining member states—with the exception of Greece, which has not yet introduced VAT—collect the tax at the point of importation, and allow approved importers to defer payment for an average of about one month.
My right hon. Friend is currently looking into the United Kingdom's arrangements.