§ Mr. Edward DaveyTo ask the Chancellor of the Exchequer what proposals he has to amend the rules relating to VAT on commercial activities conducted on the Internet; and if he will make a statement. [6273]
§ Dawn Primarolo[holding answer 3 July 1997]: Customs are closely involved in initiatives with both the European Union and the OECD which are seeking to identify solutions to the perceived problems with trading over the Internet. It is important that any changes made are done so in concert with other countries so that the risk of double or non-taxation of these supplies is avoided.
§ Mr. DaveyTo ask the Chancellor of the Exchequer how much money he estimates is lost to the Treasury by people failing to pay duties on commercial transactions conducted over the Internet; and if he will make a statement. [6274]
§ Dawn Primarolo[holding answer 3 July 1997]: There is no reliable estimate of revenue lost in this way.