Chamber and committees

The most commonly used definition is that developed by the Organisation for Economic Co-operation and Development and used by the Office for National Statistics. This defines an e-commerce transaction as ‘the sale or purchase of goods or services, conducted over computer networks by methods specifically designed for the purpose of receiving or placing of orders’.

There is currently no available research that identifies the top 20 companies in Scotland by value of e-commerce sales using this definition.

There was no meeting with the UK Chancellor on 9 March 2012. The representations made by the Cabinet Secretary for Finance, Employment and Sustainable Growth on 9 March 2012 were made via the annual letter to the Chancellor setting out Scottish Government proposals for the UK Budget.

The Scottish Government’s representations were reflected in a news release issued on 12 March 2012, which is available using the url:

http://www.scotland.gov.uk/News/Releases/2012/03/budget12032012. Within that the following text from the letter, in respect of VAT, is:

‘The disparity in VAT rates between the UK and many European countries puts our tourism and hospitality sectors at a competitive disadvantage. The majority of EU countries levy reduced rates of VAT on their hospitality and tourism sectors, but the UK does not and I would like the Chancellor to consider this further.’

There was no meeting with the UK Chancellor on 09 March 2012. The representations made by the Cabinet Secretary for Finance, Employment and Sustainable Growth on 9 March 2012 were made via the annual letter to the UK Chancellor setting out Scottish Government proposals for the UK Budget.

I refer the member to the answer to question S4W-20739 on 6 May 2014. All answers to written parliamentary questions are available on the Parliament's website, the search facility for which can be found at

www.scottish.parliament.uk/Apps2/Business/PQA/Default.aspx.

The text of the letter from the Minister for Energy, Enterprise and Tourism to the UK Chief Secretary to the Treasury, issued on 18 June 2012, is as follows:

“I welcomed the UK Government's budget decision to reduce to 5% the VAT applied on cable operated transport systems, including ski lifts. When introduced, this reduction will bring our VAT rate into line with that applied elsewhere in the European Union and, in removing that competitive disadvantage, should bring a small, but much needed, boost to Scotland's five snows ports centres.

I am, however, concerned by the proposed timing of the change, which we understand is not to be made until April 2013. I wonder if you could give some further thought to the timing, particularly whether the reduction could be introduced at the beginning of January 2013, very slightly earlier than is currently proposed.

The small change in timing will make a considerable difference to the centres whom I met recently to reflect on the last season and the challenges ahead of them. As you will understand, the centres see the reduction in VAT as key to releasing vital resources that they can invest in their future sustainability. All the centres have planned improvements which they hoped to fund with released resources, including upgrading machinery such as piste machines and gondola motors, replacing .lifts and building projects to house machinery. Without resources, they simply cannot afford to implement their plans. Unfortunately, the current timetable would mean that the reduction would not be made until after the end of the next snowsports season, with the centres not seeing any real benefits until 2014. Given the need for essential maintenance and the urgency in starting the process of upgrading and replacing ageing infrastructure at the centres, an earlier introduction is key to ensure the intended impact of the Chancellor's Budget decision comes into effect sooner rather than later.

There is one further aspect of the VAT decision which has been brought to my attention by the centres: the status of travelator lifts. The wording in the budget statement does not mention travelator lifts, which perform the same function of transporting skiers but in a safer manner, and clarification on their status. In respect of VAT would be greatly appreciated, not least since it is likely that travelators will progressively replace some of the smaller wire tows for safety reasons.

I know that you recognise the substantial contribution that this iconic industry makes to the Scottish economy, generating around £30 million a year and supporting over 600 jobs, often in very fragile communities. Our natural resources, scenery and tourist infrastructure combine to make Scotland a first class destination for global snowsports. I hope that you will be able to review the timetable to make the small change necessary to support the sector's survival.

I look forward to your response.”

The text of the letter from the Minister for Energy, Enterprise and Tourism to the UK Exchequer Secretary to the Treasury, issued on 11 September 2012, is as follows:

“I welcome your letter of 18 July 2012 setting out HM Treasury's position with regard to travelator lifts and the legislative timing of the rate of 5% VAT on cable-suspended passenger transport.

Your advice on travelators was extremely helpful and, while this will obviously be disappointing to the one Scottish centre which operates this mechanism, it has certainly clarified the distinction between those transport systems which will benefit from the reduced rate and those which fall outwith the eligibility criteria.

I know that Scotland's main economic development agencies, Scottish Enterprise and Highlands and Islands Enterprise, have responded to the ongoing HM Customs and Revenue consultation about the timing of the introduction of the reduced VAT rate. I am sure that there will be further responses, not least from the five snowsports centres for whom an early introduction of the reduced rate would have the most impact, setting out the potential contribution it would make to their long-term viability.

I look forward to the result of the consultation, which I am sure will take account of the importance this vital part of Scotland's tourism sector has on our remote communities.”

I refer the member to the answer to question S4W-20737 on 6 May 2014. All answers to written parliamentary questions are available on the Parliament’s website, the search facility for which can be found at:

http://www.scottish.parliament.uk/parliamentarybusiness/28877.aspx.

The text of the letter to the UK Chancellor of the Exchequer, issued on 24 April 2012, is as follows

“VAT ON STATIC CARAVANS - UK BUDGET 2012

I wrote in March 2012, prior to the UK Budget, setting out suggestions on a range of issues which would help boost economic growth within Scotland.

I highlighted that the existing disparity in VAT rates between the UK and many European countries continues to place our tourism and hospitality sectors at a clear competitive disadvantage. The 20% VAT on hospitality businesses in the UK is the second highest in the European Union.

Tourism is one of the priority sectors in the Scottish Government Economic Strategy. The sector contributes over £4.1 billion every year to the Scottish economy and is a major success story. Indeed despite the challenging economic environment, overnight visitors to Scotland rose by 9% in 2011, with visitors from within Great Britain increasing by 10% along with a 20% increase in domestic visitors spend.

The latest data from the 2011 VisitScotland Visitor Survey shows that UK residents were more likely to camp or stay in a caravan during their visit than overseas visitors. However, your proposal in the Budget to introduce VAT on static caravans from 1 October 2012, will inevitably increase the cost of purchasing or renting such units, as highlighted in HM Treasury's tax information and impact notes. Clearly, this will have a negative impact on what is a growing and successful part of the Scottish tourism industry.

The Scottish Government is determined to make the most of Scotland's fantastic assets and take full advantage of opportunities to drive up visitor numbers and spend. However the VAT increase on static caravans announced in your recent Budget will do precisely the opposite. It will damage a successful part of the tourism industry whilst yielding little additional tax revenue for the UK Government. Indeed it will increase VAT receipts by just 0.04% a year. I strongly urge you to reverse this damaging proposal at the earliest opportunity.

I am copying this letter to the Cabinet Secretary for Rural Affairs and the Environment and the Minister for Energy, Enterprise and Tourism.”

I refer the member to the answer to question S4W-20469 on 14 April 2014. All answers to written parliamentary questions are available on the Parliament’s website, the search facility for which can be found at:

http://www.scottish.parliament.uk/parliamentarybusiness/28877.aspx.

I refer the member to the answer to question S4W-20469 on 14 April 2014. All answers to written parliamentary questions are available on the Parliament’s website, the search facility for which can be found at:

http://www.scottish.parliament.uk/parliamentarybusiness/28877.aspx.

I refer the member to the answer to question S4W-20474 on 14 April 2014. All answers to written parliamentary questions are available on the Parliament’s website, the search facility for which can be found at:

http://www.scottish.parliament.uk/parliamentarybusiness/28877.aspx.