Value-Added Tax Consolidation Act 2010

Value-Added Tax Consolidation Act 2010


Number 31 of 2010


VALUE-ADDED TAX CONSOLIDATION ACT 2010

REVISED

Updated to 1 January 2019


This Revised Act is an administrative consolidation of the Value-Added Tax Consolidation Act 2010. It is prepared by the Law Reform Commission in accordance with its function under the Law Reform Commission Act 1975 (3/1975) to keep the law under review and to undertake revision and consolidation of statute law.

All Acts up to and including Central Bank (National Claims Information Database) Act 2018 (42/2018), enacted 27 December 2018, and all statutory instruments up to and including Criminal Justice (Suspended Sentences of Imprisonment) Act 2017 (Commencement) Order 2019 (S.I. No. 1 of 2019), made 3 January 2019, were considered in the preparation of this Revised Act.

Disclaimer: While every care has been taken in the preparation of this Revised Act, the Law Reform Commission can assume no responsibility for and give no guarantees, undertakings or warranties concerning the accuracy, completeness or up to date nature of the information provided and does not accept any liability whatsoever arising from any errors or omissions. Please notify any errors, omissions and comments by email to

revisedacts@lawreform.ie.


Number 31 of 2010


VALUE-ADDED TAX CONSOLIDATION ACT 2010

REVISED

Updated to 1 January 2019


Introduction

This Revised Act presents the text of the Act as it has been amended since enactment, and preserves the format in which it was passed.

Related legislation

Value-Added Tax Acts: this Act is one of a group of Acts included in this collective citation, to be construed together as one ( Finance (No. 3) Act 2011 (18/2011), s. 5(7)). The Acts in this group are:

Value-Added Tax Consolidation Act 2010 (31/2010)

Finance Act 2011 (67/2011), part 3

Finance (No. 2) Act 2011 (8/2011), s. 3

Finance (No. 3) Act 2011 (18/2011), s. 1 and sch. 1, in so far as they relate to value-added tax, and s. 4 and sch. 4

The following Acts are also to be construed together with the Value-Added Tax Acts. In accordance with Value-Added Tax Consolidation Act 2010, s. 2(5), references in any other enactment to the “Value-Added Tax Acts” mean this Act and every enactment which is to be read together with this Act.

Finance Act 2011 (6/2011), part 3 and part 6, insofar as it relates to value-added tax

Finance Act 2012 (9/2012), part 3 and part 6, insofar as it relates to value-added tax

Finance Act 2013 (8/2013), part 3 and part 6, insofar as it relates to value-added tax

Finance (No. 2) Act 2013 (41/2013), part 3 and part 5, insofar as it relates to value-added tax

Finance Act 2014 (37/2014), part 3 and part 6, insofar as it relates to value-added tax

Finance Act 2015 (52/2015), part 3 and part 6, insofar as it relates to value-added tax

Finance Act 2016 (18/2016), part 3 and part 6, insofar as it relates to value-added tax

Finance Act 2017 (41/2017), part 3 and part 6, insofar as it relates to value-added tax

Finance Act 2018 (30/2018), part 3 and part 6, insofar as it relates to value-added tax

Annotations

This Revised Act is annotated and includes textual and non-textual amendments, statutory instruments made pursuant to the Act and previous affecting provisions.

An explanation of how to read annotations is available at

www.lawreform.ie/annotations.

Material not updated in this revision

Where other legislation is amended by this Act, those amendments may have been superseded by other amendments in other legislation, or the amended legislation may have been repealed or revoked. This information is not represented in this revision but will be reflected in a revision of the amended legislation if one is available.

Where legislation or a fragment of legislation is referred to in annotations, changes to this legislation or fragment may not be reflected in this revision but will be reflected in a revision of the legislation referred to if one is available.

A list of legislative changes to any Act, and to statutory instruments from 1978, may be found linked from the page of the Act or statutory instrument at

www.irishstatutebook.ie.

Acts which affect or previously affected this revision

Finance Act 2018 (30/2018)

Finance Act 2017 (41/2017)

Finance Act 2016 (18/2016)

Finance (Tax Appeals) Act 2015 (59/2015)

Finance Act 2015 (52/2015)

Finance Act 2014 (37/2014)

Finance Act 2013 (8/2013)

Energy (Miscellaneous Provisions) Act 2012 (3/2012)

Finance Act 2012 (9/2012)

Local Government (Household Charge) Act 2011 (36/2011)

Finance (No. 3) Act 2011 (18/2011)

Finance (No. 2) Act 2011 (8/2011)

Finance Act 2011 (6/2011)

All Acts up to and including Central Bank (National Claims Information Database) Act 2018 (42/2018), enacted 27 December 2018, were considered in the preparation of this revision.

Statutory instruments which affect or previously affected this revision

European Union (Value-Added Tax) (Vouchers) Regulations 2018 (S.I. No. 582 of 2018)

European Union (Value-Added Tax) Regulations 2018 (S.I. No. 581 of 2018)

Value-Added Tax (Refund of Tax) (Charities Compensation Scheme) Order 2018 (S.I. No. 580 of 2018)

European Union (Value-Added Tax) Regulations 2014 (S.I. No. 340 of 2014)

European Union (Value-Added Tax) Regulations 2013 (S.I. No. 252 of 2013)

Value-Added Tax (Refund of Tax) (Rescue Boats and Related Equipment) Order 2013 (S.I. No. 249 of 2013)

Value-Added Tax (Amendment) Regulations 2012 (S.I. No. 458 of 2012)

European Union (Value-Added Tax) (No. 2) Regulations 2012 (S.I. No. 429 of 2012)

Value-Added Tax Consolidation Act 2010 (Section 14(2)) (Commencement) Order 2012 (S.I. No. 392 of 2012)

European Union (Value-Added Tax) Regulations 2012 (S.I. No. 354 of 2012)

Value-Added Tax (Refund of tax) (Touring Coached) Order 2012 (S.I. No. 266 of 2012)

Value-Added Tax (Refund of Tax) (Flat-rate Farmers) Order 2012 (S.I. No. 201 of 2012)

Tax Returns and Payments (Mandatory Electronic Filing and Payment of Tax) Regulations 2012 (S.I. No. 156 of 2012)

Value-Added Tax Regulations 2010 (S.I. No. 639 of 2010)

European Union (Value-Added Tax) Regulations 2010 (S.I. No. 612 of 2010)

All statutory instruments up to and including Criminal Justice (Suspended Sentences of Imprisonment) Act 2017 (Commencement) Order 2019 (S.I. No. 1 of 2019), made 3 January 2019, were considered in the preparation of this revision.


Number 31 of 2010


VALUE-ADDED TAX CONSOLIDATION ACT 2010

REVISED

Updated to 1 January 2019


ARRANGEMENT OF SECTIONS

PART 1

Preliminary and General

Section

1. Short title.

2. Interpretation — general.

3. Charge of value-added tax.

PART 2

Accountable persons

Chapter 1

Interpretation

4. Definitions — Part 2 .

Chapter 2

General rules

5. Persons who are, or who may become, accountable persons.

6. Persons not accountable persons unless they so elect.

7. Treatment of persons as not accountable.

8. Cancellation of election.

Chapter 3

Rules for intra-Community acquisitions

9. Intra-Community acquisitions and accountable persons.

10. Certain supplies of goods — supplier not established in the State.

11. Other provisions in relation to goods.

Chapter 4

Services supplied in the State by persons established outside the State

12. Services received from abroad and accountable persons.

13. Certain supplies of services — supplier not established in the State.

Chapter 5

Supplementary provisions

14. The State and public bodies.

15. VAT groups.

16. Reverse charge for certain supplies.

17. Other provisions in relation to services.

18. Distortion of competition, deemed taxable supplies, etc.

PART 3

Taxable Transactions

Chapter 1

Supply of goods

19. Meaning of supply of goods.

20. Transfers, etc. deemed not to be supplies.

21. Supplies made free of charge.

22. Special rules in relation to supplies of goods.

23. Supply following intra-Community acquisition.

Chapter 2

Intra-Community acquisitions

24. Intra-Community acquisitions of goods.

Chapter 3

Supply of services

25. Meaning of supply of services.

26. Transfer of intangible business assets deemed not to be supply of services.

27. Self-supply of services.

28. Special rules in relation to supplies of services.

PART 4

Place of Taxable Transactions

Chapter 1

Place of supply of goods

29. General rules.

30. Goods supplied to non-registered persons.

31. Gas and electricity supplies.

Chapter 2

Place of intra-Community transactions

32. Intra-Community acquisitions of goods.

Chapter 3

Place of supply of services

33. Application and interpretation of section 34.

34. General rules.

35. Use and enjoyment provisions.

PART 5

Taxable Amount

Chapter 1

Taxable amount — principal provisions

36. Definitions — Chapter 1.

37. General rules on taxable amount.

38. Determination that open market value applies.

39. General provisions on consideration.

40. Special consideration rule, triangulation.

41. Two-thirds rule.

42. Taxable amount for certain supplies.

43. Vouchers, etc.

43A. Vouchers — Multi-purpose and single - purpose, etc.

44. Non-business use of immovable goods.

Chapter 2

Adjustment and recovery of consideration

45. Adjustment and recovery of consideration.

PART 6

Rates and Exemption

Chapter 1

Rates

46. Rates of tax.

47. Composite and multiple supplies.

48. Works of art, etc.

49. Contract work.

50. Provisions in relation to certain supplies.

51. Determinations on rates and exemptions.

Chapter 2

Exemptions

52. General rule on exempted activity.

PART 7

Provisions Relating to Imports, Exports, etc.

53. Imports — general provisions.

54. Remission or repayment of tax on certain imported goods.

55. Goods in transit — miscellaneous provisions.

56. Zero-rating scheme for qualifying businesses.

57. Remission of tax on goods exported, etc.

58. Retail export scheme.

PART 8

Deductions

Chapter 1

General provisions

59. Deduction for tax borne or paid.

60. General limits on deductibility.

61. Apportionment for dual-use inputs.

62. Reduction of tax deductible in relation to qualifying vehicles.

62A. Adjustment of tax deductible in relation to unpaid consideration.

Chapter 2

Capital goods scheme

63. Interpretation and application.

64. Capital goods scheme.

PART 9

Obligations of Accountable Persons

Chapter 1

Registration

65. Registration.

Chapter 2

Invoicing

66. Issue of invoices and other documents.

67. Amendments to invoices.

68. Flat-rate farmer invoices and other documents.

69. Invoices or credit notes — errors, etc.

70. Time limits for issuing invoices, etc.

71. Self-billing and outsourcing.

72. Storage of invoices.

73. Requests for particulars in respect of repayment of tax.

Chapter 3

Returns and payment of tax

74. Tax due on supplies.

75. Tax due on intra-Community acquisitions.

76. Returns and remittances.

77. Authorisations in relation to filing dates.

77A. Adjustments to returns.

78. Electronic remittances and returns.

79. Special provisions in relation to payment dates.

Chapter 4

Tax due on moneys received

80. Tax due on moneys received basis.

Chapter 5

Expression of doubt

81. Letter of expression of doubt.

Chapter 6

Recapitulative statements

82. Statement of intra-Community supplies of goods.

83. Statement of intra-Community supplies of taxable services.

Chapter 7

Record keeping

84. Duty to keep records.

85. Supplementary provisions on records.

PART 10

Special Schemes

Chapter 1

Special Schemes - Miscellaneous

86. Special provisions for tax invoiced by flat-rate farmers.

86A. Restriction of flat-rate addition.

87. Margin scheme — taxable dealers.

88. Margin scheme — travel agents.

89. Margin scheme — auctioneers.

90. Investment gold.

91. Electronic services scheme.

Chapter 2

Special Schemes for Telecommunication Services, Broadcasting Services and Electronically Supplied Services

91A. Definitions.

91B. Non-Union scheme (where the State is Member State of identification).

91C. Non-Union scheme (where the State is Member State of consumption).

91D. Union scheme (where the State is Member State of identification).

91E. Union scheme (where the State is Member State of consumption).

91F. Regulations: special schemes for telecommunications services, broadcasting services and electronically supplied services.

Chapter 3

Suspension arrangements for alcohol products

92. Suspension arrangements for alcohol products.

PART 11

Immovable Goods

93. Supply of immovable goods (old rules).

94. Supplies of immovable goods (new rules).

95. Transitional measures for supplies of immovable goods.

96. Waiver of exemption under old rules.

97. Option to tax letting of immovable goods.

98. Valuation of an interest in immovable goods.

PART 12

Refunds and Repayments of Tax

99. General provisions on refund of tax.

100. Unjust enrichment.

101. Intra-Community refunds of tax.

102. Refunds to taxable persons established outside the Community.

103. Ministerial refund orders.

104. Repayments in specific circumstances.

105. Interest on refunds of tax.

PART 13

Administration and General

Chapter 1

Administration

106. Care and management of tax.

107. Officer responsible in case of body of persons.

108. Inspection and removal of records.

Chapter 1A

Special measures for the protection of the tax

108A. Notice of requirement to furnish certain information, etc.

108B. Notice of requirement to issue a document.

108C. Joint and several liability for tax.

109. Security to be given by certain taxable persons.

Chapter 2

Estimation, assessment and time limits

110. Estimation of tax due.

111. Assessment of tax due.

112. Generation of electronic, etc. estimates and assessments.

113. Time limits.

Chapter 3

Interest and penalties

114. Interest payable by accountable persons.

114A. Interest payable in certain circumstances.

115. Penalties generally.

116. Penalty for deliberately or carelessly making incorrect returns, etc.

117. Penalty for assisting in making incorrect returns, etc.

118. Mitigation and application of penalties.

Chapter 4

Appeals and regulations

119. Appeals.

120. Regulations.

PART 14

Repeals, Consequential Amendments, Transitional Measures and Commencement

121. Definition of “repealed enactment”.

122. Repeal of Value-Added Tax Act 1972, etc.

123. Consequential amendments and repeals and revocations.

124. Transitional provisions.

125. Commencement.

SCHEDULE 1

Exempt Activities

PART 1

Activities in the Public Interest

PART 2

Other Exempted Activities

SCHEDULE 2

Zero-rated Goods and Services

PART 1

International Supplies

PART 2

Supplies Within the State

SCHEDULE 3

Goods and Services chargeable at the reduced rate

PART 1

Interpretation

PART 2

Annex III Supplies

PART 3

Certain Supplies with Reduced Rate at 1 January 1991: Special Provisions in Accordance with Article 115 of the VAT Directive

PART 4

Certain Supplies with Reduced Rate at 1 January 1991: Special Provisions in Accordance with Article 118 of the VAT Directive

PART 5

Supplies of Certain Live Plants and Similar Goods

PART 6

Supplies of Certain Works of Art, Antiques and Literary Manuscripts

SCHEDULE 4

Agricultural Production Activities and Services

PART 1

Article 295(1) and Annex VII of the VAT Directive

PART 2

Article 295(1) and Annex VIII of the VAT Directive

SCHEDULE 5

Works of Art, Collectors’ Items and Antiques chargeable at the rate specified in section 46(1)(c) in the circumstances specified in section 48

SCHEDULE 6

Activities listed in Annex 1 of the VAT Directive

SCHEDULE 7

Consequential Amendments

PART 1

Consequential Amendments to Acts

PART 2

Consequential Amendments to Statutory Instruments

SCHEDULE 8

Repeals and Revocations

PART 1

Repeals

PART 2

Revocations


Acts Referred to

Capital Acquisitions Tax Consolidation Act 2003

2003, No. 1

Child Care Act 1991

1991, No. 17

Companies Act 1963

1963, No. 33

Companies Act 1990

1990, No. 33

Criminal Assets Bureau Act 1996

1996, No. 31

Criminal Justice (Legal Aid) Act 1962

1962, No. 12

Customs Acts

Customs Consolidation Act 1876

1876, No. (39 & 40 Vict.) c. 36

Customs-free Airport Act 1947

1947, No. 5

Fertilisers, Feeding Stuffs and Mineral Mixtures Act 1955

1955, No. 8

Finance (No. 2) Act 1975

1975, No. 19

Finance (No. 2) Act 1981

1981, No. 28

Finance Act 1920

1920, (10 & 11 Geo. 5) c.18

Finance Act 1973

1973, No. 19

Finance Act 1975

1975, No. 6

Finance Act 1976

1976, No. 16

Finance Act 1979

1979, No. 11

Finance Act 1980

1980, No. 14

Finance Act 1981

1981, No. 16

Finance Act 1982

1982, No. 14

Finance Act 1983

1983, No. 15

Finance Act 1984

1984, No. 9

Finance Act 1985

1985, No. 10

Finance Act 1986

1986, No. 13

Finance Act 1987

1987, No. 10

Finance Act 1988

1988, No. 12

Finance Act 1989

1989, No. 10

Finance Act 1990

1990, No. 10

Finance Act 1991

1991, No. 13

Finance Act 1992

1992, No. 9

Finance Act 1993

1993, No. 13

Finance Act 1994

1994, No. 13

Finance Act 1995

1995, No. 8

Finance Act 1996

1996, No. 9

Finance Act 1997

1997, No. 22

Finance Act 1998

1998, No. 3

Finance Act 1999

1999, No. 2

Finance Act 2000

2000, No. 3

Finance Act 2001

2001, No. 7

Finance Act 2002

2002, No. 5

Finance Act 2003

2003, No. 3

Finance Act 2004

2004, No. 8

Finance Act 2005

2005, No. 5

Finance Act 2006

2006, No. 6

Finance Act 2007

2007, No. 11

Finance Act 2008

2008, No. 3

Finance (No. 2) Act 2008

2008, No. 25

Finance Act 2009

2009, No. 12

Finance Act 2010

2010, No. 5

Free Ports Act 1986

1986, No. 6

Gaming and Lotteries Act 1956

1956, No. 2

Health Act 1970

1970, No. 1

Housing (Private Rented Dwellings) Act 1982

1982, No. 6

Housing Act 1988

1988, No. 28

Income Tax Acts

Live Stock (Artificial Insemination) Act 1947

1947, No. 32

Local Government (Charges) Act 2009

2009, No. 30

Local Government Act 2001

2001, No. 37

National Asset Management Agency Act 2009

2009, No. 34

Residential Tenancies Act 2004

2004, No. 27

Stamp Duties Consolidation Act 1999

1999, No. 31

Standards in Public Office Act 2001

2001, No. 31

Taxes Consolidation Act 1997

1997, No. 39

Unit Trusts Act 1990

1990, No. 37

Value-Added Tax (Amendment) Act 1978

1978, No. 34

Value-Added Tax Act 1972

1972, No. 22

Value-Added Tax Acts 1972-1992

Value-Added Tax Acts 1972-1997

ABBREVIATIONS USED IN MARGINAL NOTES

FA 2010

Finance Act 2010

s.

section

Sch.

Schedule

ss.

sections

VATA

Value-Added Tax Act 1972


Number 31 of 2010


VALUE-ADDED TAX CONSOLIDATION ACT 2010

REVISED

Updated to 1 January 2019


AN ACT TO CONSOLIDATE ENACTMENTS RELATING TO VALUE-ADDED TAX.

[23 rd November, 2010]

BE IT ENACTED BY THE OIREACHTAS AS FOLLOWS:

Annotations:

Modifications (not altering text):

C1

Act included in definition of “Taxation Acts” by Finance (Tax Appeals) Act 2015 (59/2015), s. 2(f), S.I. No. 110 of 2016.

Interpretation

2. In this Act— ...

“Taxation Acts” means— ...

(f) the Value-Added Tax Consolidation Act 2010, and the enactments amending or extending that Act,

...

C2

Functions assigned to Tax Appeals Commission under Act extended and construed by Finance (Tax Appeals) Act 2015 (59/2015), ss. 5(2) and 7(2), S.I. No. 110 of 2016.

Performance of Commission’s functions through Commissioners and staff

5....

(2) Any function assigned by this Act or the Taxation Acts to the Commission or the Commissioners, other than a function specified in section 6(2)(b), (f), (g), or (j), may be performed by any one or more of the Commission’s staff acting under the Commission’s authority.

...

Functions of Commissioners performable by one of their number

7. (1) Any provision of this Act, or the Taxation Acts, that confers a function on the Commissioners shall be read as conferring the function on, and accordingly as enabling, subject to the rules of procedure, if any, adopted under section 6 (5), the function to be performed by, any one of the Commissioners.

(2) Without prejudice to the generality of subsection (1), the granting of authority of the kind referred to in section 5(2) to a member or members of staff may, subject to the rules of procedure, if any, adopted under section 6(5), be done by any one of the Commissioners.

C3

Reference to function of a “Commissioner” or “a member of the Commission” under Act construed (21.03.2016) by Finance (Tax Appeals) Act 2015 (59/2015), s. 9(7), S.I. No. 110 of 2016.

Temporary Commissioners

9. ...

(7) Notwithstanding that a temporary Commissioner is not, by virtue of section 4(2), to be regarded as a member of the Commission, where a function of a Commissioner falls to be performed by a temporary Commissioner, references in such of the provisions of—

(a) this Act, other than those disapplied by subsection (6), or

(b) the Taxation Acts,

as are relevant to the performance of that function, to—

(i) a Commissioner, or

(ii) a member of the Commission,

shall be read as including references to a temporary Commissioner.

Editorial Notes:

E1

Obligation on certain accountable persons under Act to make specified returns by electronic means imposed (1.09.2008) by Tax Returns and Payments (Mandatory Electronic Filing and Payment of Tax) Regulations 2008 (S.I. No. 341 of 2008), in effect as per reg. 1(2); (1.06.2011) by Tax Returns and Payments (Mandatory Electronic Filing and Payment of Tax) Regulations 2011 (S.I. No. 223 of 2011), in effect as per reg. 1(2); (1.06.2012) by Tax Returns and Payments (Mandatory Electronic Filing and Payment of Tax) Regulations 2012 (S.I. No. 156 of 2012), reg. 4, in effect as per reg. 1(2); and (1.01.2015) by Tax Returns and Payments (Mandatory Electronic Filing and Payment of Tax) Regulations 2014 (S.I. No. 572 of 2014), in effect as per reg. 1(2).

E2

Act included in definition of “specified enactment” for purposes of data sharing and exchange pursuant to Local Government (Household Charge) Act 2011 (36/2011), s. 14 (19.12.2011) by Local Government (Household Charge) Act 2011 (36/2011), s. 14(3), commenced on enactment.

PART 1

Preliminary and General

1.

Short title.

[VATA s. 44]

1.— This Act may be cited as the Value-Added Tax Consolidation Act 2010.

2.

Interpretation — general.

[VATA s. 1 (in part) and s. 3(1B) and FA 2010 s. 165(4)]

2.—(1) In this Act—

“accountable person” has the same meaning as it has in Part 2 ;

“accounting year” means a period of 12 months ending on 31 December, but if a taxable person customarily makes up accounts for periods of 12 months ending on another fixed date, then, for such a person, a period of 12 months ending on that fixed date;

“agricultural produce” has the meaning assigned to it by section 4(1) ;

“agricultural service” has the meaning assigned to it by section 4(1) ;

“ancillary supply” means a supply, forming part of a composite supply, which is not physically and economically dissociable from a principal supply and is capable of being supplied only in the context of the better enjoyment of that principal supply;

“antiques” has the meaning assigned to it by section 87(1) ;

F1 [ Appeal Commissioner has the meaning given to it by section 2 of the Finance (Tax Appeals) Act 2015; ]

“assignment”, in relation to an interest in immovable goods, means the assignment by a person of that interest in those goods or any part of those goods to another person, except that, if that other person at the time of the assignment retains the reversion on that interest in those goods, that assignment shall be a surrender;

“auction scheme” has the meaning assigned to it by section 89(1) ;

“body of persons” means any body politic, corporate or collegiate, and any company, partnership, fraternity, fellowship and society of persons, whether corporate or not corporate;

“building”, in the definition of “development”, includes, in relation to a transaction, any prefabricated or like structure in respect of which the following conditions are satisfied:

( a) the structure—

(i) has a rigid roof and one or more rigid walls and (other than in the case of a structure used for the cultivation of plants) a floor,

(ii) is designed so as to provide for human access to, and free movement in, its interior,

(iii) is for a purpose that does not require that it be mobile or portable, and

(iv) does not have or contain any aids to mobility or portability;

and

( b)(i) neither the agreement in respect of the transaction nor any other agreement between the parties to that agreement contains a provision relating to the rendering of the structure mobile or portable or the movement or re-location of the structure after its erection, and

(ii) the person (in this subparagraph referred to as the “relevant person”) for whom the structure is constructed, extended, altered or reconstructed signs and delivers, at the time of the transaction, to the person who constructed, extended, altered or reconstructed the structure, a declaration of the relevant person’s intention to retain it on the site on which it is at that time located;

“business” means an economic activity, whatever the purpose or results of that activity, and includes any activity of producers, traders or persons supplying services, including mining and agricultural activities and activities of the professions, and the exploitation of tangible or intangible property for the purposes of obtaining income therefrom on a continuing basis;

“calendar quarter” means a period of 3 months beginning on 1 January, 1 April, 1 July or 1 October;

“capital goods” means developed immovable goods and includes refurbishment within the meaning of section 63(1) , and a reference to a capital good includes a reference to any part thereof and the term “capital good” shall be construed accordingly;

“clothing” does not include footwear;

“Collector-General” means the Collector-General appointed under section 851 of the Taxes Consolidation Act 1997;

“collectors’ items” has the meaning assigned to it by section 87(1) ;

“Community” has the same meaning as it has in Articles 5 to 8 of the VAT Directive, and cognate references shall be construed accordingly;

“completed”, in respect of immovable goods, has the meaning assigned to it by section 94(1) ;

“composite supply” means a supply made by a taxable person to a customer comprising 2 or more supplies of goods or services or any combination of those, supplied in conjunction with each other, one of which is a principal supply;

“contractor”, in relation to contract work, means a person who makes or assembles movable goods;

“contract work” means the service of handing over by a contractor to another person of movable goods made or assembled by the contractor from goods entrusted to the contractor by that other person, whether or not the contractor has provided any part of the goods used;

F2 [ Customs Acts has the meaning given to it by section 2 (3) of the Customs Act 2015 ; ]

“customs-free airport” means the land which, under the Customs-free Airport Act 1947, for the time being constitutes the Customs-free airport;

“development”, in relation to any land, means—

( a) the construction, demolition, extension, alteration or reconstruction of any building on the land, or

( b) the carrying out of any engineering or other operation in, on, over or under the land to adapt it for materially altered use;

“electronically supplied services” includes—

( a) website supply, web-hosting, distance maintenance of programmes and equipment,

( b) supply of software and updating of it,

( c) supply of images, text and information, and making databases available,

( d) supply of music, films and games (including games of chance and gambling games) and of political, cultural, artistic, sporting, scientific and entertainment broadcasts and events, and

( e) supply of distance teaching,

and “electronic service” shall be construed accordingly, but where the supplier of a service and his or her customer communicate by means of electronic mail, this shall not of itself mean that the service performed is an electronic service;

“enactment” means an Act or statutory instrument or any part of an Act or statutory instrument;

“excisable products” means the products referred to in section 97 of the Finance Act 2001;

“exempted activity” means—

( a) a supply of immovable goods in respect of which, pursuant to sections 94(2) and 95(3) and (7)(b), tax is not chargeable, and

F3 [ ( b ) a supply of any goods or services of a kind specified in Schedule 1 ; ]

“exportation of goods” means the exportation of goods to a destination outside the Community, and cognate words shall be construed accordingly;

“farmer” has the meaning assigned to it by section 4(1) ;

“flat-rate addition” has the meaning assigned to it by section 86(1) ;

“flat-rate farmer” means—

( a) a farmer who is not an accountable person,

( b) a farmer who is an accountable person referred to in section 9(4) or 12(3) , or

( c) a person who, in accordance with section 17(2) , is deemed not to be an accountable person with respect to supplies of a kind specified in the definition of “farmer” in section 4(1) ,

in so far as that farmer engages in the supply of agricultural produce or agricultural services within the State;

“footwear” includes shoes, boots, slippers and the like but does not include stockings, under-stockings, socks, ankle-socks or similar articles or footwear without soles or footwear which is or incorporates skating or swimming equipment;

“free port” means the land declared to be a free port for the purposes of the Free Ports Act 1986 by an order made under section 2 of that Act;

“freehold equivalent interest” means an interest in immovable goods (other than a freehold interest) the transfer of which constitutes a supply of goods in accordance with Chapter 1 of Part 3 ;

“fur skin” means any skin with the fur, hair or wool attached except the skin of woolled sheep or lamb;

“goods” means all movable and immovable objects (other than things in action or money), and references to goods include references to both new and used goods;

“goods threshold” means €75,000;

“hire”, in relation to movable goods, includes a letting on any terms including a leasing;

“immovable goods” means land;

“importation of goods” means the importation of goods from outside the Community into the State—

( a) directly, or

( b) through one or more than one other Member State where value-added tax referred to in the VAT Directive has not been chargeable on the goods in such other Member State or Member States in respect of the transaction concerned,

and cognate words shall be construed accordingly;

“independently”, in relation to a taxable person, excludes a person who is employed or who is bound to an employer by a contract of employment or by any other legal ties creating the relationship of employer and employee as regards working conditions, remuneration and the employer’s liability;

“individual supply” means a supply of goods or services which is a constituent part of a multiple supply and which is physically and economically dissociable from the other goods or services forming part of that multiple supply, and is capable of being supplied as a good or service in its own right;

“inspector of taxes” means an inspector of taxes appointed under section 852 of the Taxes Consolidation Act 1997;

“intra-Community acquisition”, in relation to goods, has the meaning assigned to it by section 24 ;

“joint option for taxation” has the meaning assigned to it by section 94 ;

“landlord’s option to tax” has the meaning assigned to it by section 97 ;

F4 [ livestock means live

(a) cattle, sheep, goats, pigs and deer, and

(b) horses normally intended for use in the preparation of foodstuffs or in agricultural production; ]

“local authority” has the meaning assigned to it by the Local Government Act 2001;

“margin scheme” has the meaning assigned to it by section 87(1) ;

“Minister” means the Minister for Finance;

“movable goods” means goods other than immovable goods;

“multiple supply” means 2 or more individual supplies made by a taxable person to a customer where those supplies are made in conjunction with each other for a total consideration covering all of those individual supplies, and where those individual supplies do not constitute a composite supply;

“new means of transport” means motorised land vehicles with an engine cylinder capacity exceeding 48 cubic centimetres or a power exceeding 7.2 kilowatts, vessels exceeding 7.5 metres in length and aircraft with a take-off weight exceeding 1,550 kilogrammes—

( a) which are intended for the transport of persons or goods, and

( b)(i) which in the case of vessels and aircraft were supplied 3 months or less after the date of first entry into service and in the case of land vehicles were supplied 6 months or less after the date of first entry into service, or

(ii) which have travelled 6,000 kilometres or less in the case of land vehicles, sailed for 100 hours or less in the case of vessels or flown for 40 hours or less in the case of aircraft,

other than vessels and aircraft of the kind referred to in paragraph 4(2) of Schedule 2 ;

“person registered for value-added tax”—

( a) in relation to another Member State, means a person currently issued with an identification number in that State for the purposes of accounting for value-added tax referred to in the VAT Directive,

( b) in relation to the State, means a registered person;

“principal supply” means the supply of goods or services which constitutes the predominant element of a composite supply and to which any other supply forming part of that composite supply is ancillary;

“public body” means—

( a) a Department of State,

( b) a local authority, or

( c) a body established by any enactment;

“registered person” means a person who is registered in the register maintained under section 65 ;

“regulations” means regulations under section 120 ;

“repealed enactment” has the meaning assigned to it by section 121 ;

“second-hand goods” has the meaning assigned to it by section 87(1) ;

“secretary” includes such persons as are referred to in section 1044(2) of the Taxes Consolidation Act 1997 and section 55(1) of the Finance Act 1920;

“services threshold” means €37,500;

“stock-in-trade”, F5 [ in relation to a person, means goods that are ]

( a) F5 [ movable goods of a kind ] that the person has supplied in the ordinary course of the person’s business and that—

(i) are held for supply (otherwise than because of section 19(1)(f) ), or

(ii) would be so held if they were mature or if their manufacture, preparation or construction had been completed,

( b) materials incorporated into immovable goods of a kind that—

(i) are supplied by the person in the ordinary course of the person’s business, and

(ii) have not been supplied by the person since the goods were developed, but are held for supply, or would be so held if their development had been completed,

and such materials shall be taken to have been supplied to the same extent as the immovable goods into which they have been incorporated are taken to have been supplied,

( c) consumable materials that the person has incorporated into immovable goods in the course of a business that consists of the supply of a service involving constructing, repairing, painting or decorating immovable goods where that service has yet to be completed, and such materials shall be taken to have been supplied to the extent that the service in relation to which they have been used has been supplied, or

( d) materials that have not been incorporated in goods and—

(i) are used by the person in the manufacture or construction of goods of a kind that the person supplies in the ordinary course of the person’s business, or

(ii) if the person’s ordinary business consists of repairing, painting or decorating immovable goods, are used by the person as consumable materials in the course of that business;

“supply”—

( a) in relation to goods, has the meaning assigned to it by subsection (3) and Chapter 1 of Part 3 ,

( b) in relation to services, has the meaning assigned to it by Chapter 3 of Part 3 ,

and cognate words shall be construed accordingly;

“surrender”, in relation to an interest in immovable goods—

( a) means the surrender by a person (in this definition referred to as the “lessee”) of an interest in those goods or any part of those goods to the person (in this definition referred to as the “lessor”) who, at the time of the surrender, retains the reversion on that interest in those goods, and

( b) includes—

(i) the abandonment of that interest in those goods by the lessee,

(ii) the failure of the lessee to exercise any option of the kind referred to in section 93(1)(a) in relation to that interest in those goods (but excluding any such failure if such interest were created on or after 1 July 2008), and

(iii) the recovery by the lessor of that interest in those goods by ejectment or forfeiture prior to the date that the interest would, but for its surrender, have expired;

“tax” means value-added tax chargeable by virtue of this Act;

“taxable dealer”—

( a) in relation to supplies of gas through the natural gas distribution system, F6 [ or of heat or cooling energy through heating or cooling networks, ] or of electricity, has the meaning assigned to it by section 31(1)(a) , and

( b) in relation to supplies of movable goods (including a means of transport and agricultural machinery) has the meaning assigned to it by section 87(1) ;

“taxable goods”, in relation to any supply, intra-Community acquisition or importation, means goods the supply of which is not an exempted activity;

“taxable period” means a period of 2 months beginning on 1 January, 1 March, 1 May, 1 July, 1 September or 1 November;

“taxable person” means a person who independently carries on a business in the Community or elsewhere;

“taxable services” means services the supply of which is not an exempted activity;

“telecommunications services” means services relating to the transmission, emission or reception of signals, writing, images and sounds or information of any nature by wire, radio, optical or other electromagnetic systems, and includes—

( a) the related transfer or assignment of the right to use capacity for such transmission, emission or reception, and

( b) the provision of access to global information networks;

“telephone card” means a card, or a means other than money—

( a) that confers a right to access a telecommunications service and, in cases where the supplier of the telecommunications service so agrees with another supplier (in this definition referred to as a “contracted third party supplier”), a right to receive other services or goods from that contracted third party supplier, and

( b) that, when the card or other means is supplied to a person other than for the purpose of resale, entitles the supplier to a consideration for the supply under circumstances that preclude the user of the card or means from being liable for any further charge for access to the telecommunications service or for the receipt of services or goods from a contracted third party supplier;

“VAT Directive” means Council Directive No. 2006/112/EC of 28 November 2006 1 on the common system of value-added tax;

“vessel”, in relation to transport, means a waterborne craft of any type, whether self-propelled or not, and includes a hovercraft;

“works of art” has the meaning assigned to it by section 87(1) .

(2) In this Act references to moneys received by a person include references to—

( a) money lodged or credited to the account of the person in any bank, savings bank, building society, hire purchase finance concern or similar financial concern,

( b) money (other than money referred to in paragraph (a)) which under an agreement (other than an agreement providing for discount or a price adjustment made in the ordinary course of business or an arrangement with creditors) has ceased to be due to the person,

( c) money due to the person which, in accordance with section 1002 of the Taxes Consolidation Act 1997, is paid to the Revenue Commissioners by another person and has thereby ceased to be due to the person by that other person, and

( d) money, which, in relation to money received by a person from another person, has been deducted in accordance with—

(i) Chapter 1 of Part 18 of the Taxes Consolidation Act 1997, or

(ii) Chapter 2 of Part 18 of the Taxes Consolidation Act 1997,

and has thereby ceased to be due to the first-mentioned person by the other person,

and money so lodged or credited to the account of a person shall be deemed to have been received by the person on the date of the making of the lodgement or credit and money which has so ceased to be due to a person shall be deemed to have been received by the person on the date of the cesser.

(3) For the purposes of this Act, the provision of electricity, gas and any form of power, heat, refrigeration or ventilation shall be deemed to be a supply of goods and not a supply of services.

(4) In this Act, a reference to the territory of a Member State has the same meaning as it has in Articles 5 to 8 of the VAT Directive, and references to Member States and cognate references shall be construed accordingly.

(5) References in any other enactment to the “Value-Added Tax Acts” mean this Act and every enactment which is to be read together with this Act.

Annotations:

Amendments:

F1

Substituted (21.03.2016) by Finance (Tax Appeals) Act 2015 (59/2015), s. 42 and sch. 2 part 4 para. 4(a), S.I. No. 110 of 2016.

F2

Inserted (25.12.2017) by Finance Act 2017 (41/2017), s. 58(a), commenced on enactment.

F3

Substituted (31.03.2012) by Finance Act 2012 (9/2012), s. 85(a), commenced on enactment.

F4

Substituted (1.01.2015) by Finance (No. 2) Act 2013 (41/2013), s. 66(1)(a), commenced as per s. 66(2) and S.I. No. 498 of 2014.

F5

Substituted (6.02.2011) by Finance Act 2011 (6/2011), s. 61 and sch. 2, commenced on enactment.

F6

Inserted (31.03.2012) by Finance Act 2012 (9/2012), s. 138 and sch. 6 par. 3(a), in effect as per par. 4(b).

1 OJ No. L347, 11.12.2006, p.1

3.

Charge of value-added tax.

[VATA s. 2]

3.— Except as expressly otherwise provided by this Act, a tax called value-added tax is, subject to and in accordance with this Act and regulations, chargeable, leviable and payable on the following transactions:

( a) the supply for consideration of goods by a taxable person acting in that capacity when the place of supply is the State;

( b) the importation of goods into the State;

( c) the supply for consideration of services by a taxable person acting in that capacity when the place of supply is the State;

( d) the intra-Community acquisition for consideration by an accountable person of goods (other than new means of transport) when the acquisition is made within the State;

( e) the intra-Community acquisition for consideration of new means of transport when the acquisition is made within the State.

PART 2

Accountable persons

Chapter 1

Interpretation

4.

Definitions — Part 2.

[VATA s. 8(3B) and (9)]

4.—(1) In this Act—

“agricultural produce”, in relation to a farmer, means goods (other than live greyhounds) produced by the farmer in the course of an Annex VII activity;

“agricultural service”, in relation to a farmer, means any Annex VIII service supplied by the farmer using his or her own labour or that of his or her employees or effected by means of machinery, plant or other equipment normally used for the purposes of an Annex VII activity carried on by the farmer;

“Annex VII activity” means any activity of a description specified in F7 [ Annex VII of the VAT Directive (the text of which Annex is contained in Part 1 of Schedule 4 ) and Article 295(2) ];

“Annex VIII service” means any service of a description specified in F8 [ ] Annex VIII of the VAT Directive (the text of which Annex is contained in Part 2 of Schedule 4 );

“farmer” means a person who engages in at least one Annex VII activity, and—

( a) whose supplies consist exclusively of either or both of the following:

(i) supplies of agricultural produce;

(ii) supplies of agricultural services;

or

( b) whose supplies consist exclusively of either or both of the supplies specified in paragraph (a) and of one or more of the following:

(i) supplies of machinery, plant or equipment which has been used by such person for the purposes of an Annex VII activity;

(ii) supplies of services consisting of the training of horses for racing the total consideration for which has not exceeded and is not likely to exceed the services threshold in any continuous period of 12 months;

(iii) supplies of goods and services (other than those referred to in subparagraphs (i) and (ii) or paragraph (a)) the total consideration for which is such that such person would not, because of section 6(1)(c) or (d), be an accountable person if such supplies were the only supplies made by him or her.

(2) In this Part “control”—

( a) in relation to a body corporate, means the power of a person to secure, by means of the holding of shares or the possession of voting power in or in relation to that or any other body corporate, or by virtue of any powers conferred by the articles of association or other document regulating that or any other body corporate, that the affairs of the first-mentioned body corporate are conducted in accordance with the wishes of that person,

( b) in relation to a partnership, means the right to a share of more than one-half of the assets, or of more than one-half of the income, of the partnership.

Annotations:

Amendments:

F7

Substituted (6.02.2011) by Finance Act 2011 (6/2011), s. 81 and sch. 3 par. 3(a), commenced as per par. 10(c).

F8

Deleted (6.02.2011) by Finance Act 2011 (6/2011), s. 81 and sch. 3 par. 3(a), commenced as per par. 10(c).

Chapter 2

General rules

5.

Persons who are, or who may become, accountable persons.

[VATA s. 8(1) and (4)]

5.—(1)( a) Subject to paragraph (c), a taxable person who engages in the supply, within the State, of taxable goods or services shall be—

(i) an accountable person, and

(ii) accountable for and liable to pay the tax charged in respect of such supply.

( b) Subject to paragraph (c), in addition, the persons referred to in F9 [ sections 9 , 10 , 12 , 15 , 17(1) , 94(3) and 108C ] shall be accountable persons.

( c) A person not established in the State who supplies goods in the State only in the circumstances set out in section 10 , or supplies a service in the State only in the circumstances set out in F10 [ section 16(3) , ] shall not be an accountable person.

(2) Where, by virtue of section 6(1) or 7 , a person has not been an accountable person and a change of circumstances occurs from which it becomes clear that the person is likely to become an accountable person, he or she shall be deemed, for the purposes of this Act, to be an accountable person from the beginning of the taxable period commencing next after such change.

Annotations:

Amendments:

F9

Substituted (23.12.2014) by Finance Act 2014 (37/2014), s. 69(2)(a), commenced on enactment.

F10

Substituted (1.01.2011) by European Union (Value-Added Tax) Regulations 2010 (S.I. No. 612 of 2010), reg. 3(d) and table, in effect as per reg. 1(2).

Editorial Notes:

E3

Previous affecting provision: subs. (1)(b) amended (23.12.2014) by Finance Act 2014 (37/2014), s. 69(2)(a), commenced on enactment; superseded as per F-note above.

6.

Persons not accountable persons unless they so elect.

[VATA s. 8(3) and (3D)( a)]

6.—(1) Subject to subsections (2) and (3) and F11 [ sections 9 , 10 , 12 , ] 14(1) and 17(1) , and notwithstanding section 5(1) , the following persons shall not, unless they otherwise elect and then only during the period for which such election has effect, be accountable persons:

( a) a farmer, for whose supply in any continuous period of 12 months of—

(i) agricultural services (other than insemination services, stock-minding or stock-rearing), the total consideration has not exceeded, and is not likely to exceed, the services threshold,

(ii) goods being bovine semen, the total consideration has not exceeded, and is not likely to exceed, the goods threshold,

(iii) goods, being horticultural type products of the kind specified in paragraph 22(1) of Schedule 3, to persons who are not engaged in supplying those goods in the course or furtherance of business, the total consideration has not exceeded and is not likely to exceed the goods threshold,

(iv) services specified in subparagraph (i) and either or both of goods of the kind specified in subparagraph (ii) and goods of the kind specified in subparagraph (iii) supplied in the circumstances set out in that subparagraph, the total consideration has not exceeded and is not likely to exceed the services threshold, or

(v) goods of the kind specified in subparagraph (ii) and goods of the kind specified in subparagraph (iii) supplied in the circumstances set out in that subparagraph, the total consideration has not exceeded and is not likely to exceed the goods threshold;

( b) a person whose supplies of taxable goods or services consist exclusively of—

(i) supplies, to accountable persons and persons to whom section 102 applies, of fish (not being at a stage of processing further than that of being gutted, salted and frozen) which he or she has caught in the course of a sea-fishing business, or

(ii) supplies of the kind specified in subparagraph (i) and of either or both of the following:

(I) supplies of machinery, plant or equipment which have been used by him or her in the course of a sea-fishing business;

(II) supplies of other goods and services the total consideration for which is such that such person would not, because of paragraph (c) or (d), be an accountable person if such supplies were the only supplies made by him or her;

( c)(i) subject to subparagraph (ii), a person for whose supply of taxable goods (other than supplies of the kind specified in section 30(1)(a)(i) ) and services, the total consideration has not exceeded and is not likely to exceed the goods threshold in any continuous period of 12 months,

(ii) subparagraph (i) shall apply only if at least 90 per cent of the total consideration referred to therein is derived from the supply of taxable goods (other than goods chargeable at any of the rates specified in section 46(1)(a) and (c) which were produced or manufactured by the person referred to in subparagraph (i) wholly or mainly from materials chargeable at the rate specified in section 46(1)(b) );

( d) a person (other than a person to whom paragraph (a), (b) or (c) applies) for whose supply of taxable goods and services the total consideration has not exceeded, and is not likely to exceed, the services threshold in any continuous period of 12 months.

(2)( a) Supplies of bovine semen—

(i) by a farmer to any other farmer licensed as an artificial insemination centre in accordance with the Live Stock (Artificial Insemination) Act 1947, or

(ii) by a farmer to an accountable person over whom that farmer exercises control,

shall be disregarded in calculating the total consideration referred to in subsection (1)(a)(ii).

( b) Where in the case of 2 or more persons one of whom exercises control over one or more of the other persons, supplies of goods of the same class or of services of the same nature are made by 2 or more of those persons, the total of the consideration relating to such supplies shall, for the purposes of the application of paragraphs (c) and (d) of subsection (1) in relation to each of those persons who made such supplies, be treated as if all of the supplies in question had been made by each of the last-mentioned persons.

( c) Where a farmer supplies services or goods of the kind specified in subsection (1)(a)(i), (ii) or (iii), then paragraph (b) shall be deemed to apply to such supplies, notwithstanding that that paragraph does not otherwise apply to supplies by a farmer.

( d) Subsection (1) shall not apply to a supply of the kind referred to in F11 [ section 12(3) or (5) ] or 17(1) .

(3) Subsection (1)(b) to (d) shall not apply to a person who is not established in the State.

Annotations:

Amendments:

F11

Substituted (1.01.2011) by European Union (Value-Added Tax) Regulations 2010 (S.I. No. 612 of 2010), reg. 3(d) and table, in effect as per reg. 1(2).

Editorial Notes:

E4

Procedure for election and cancellation of election to be an accountable person prescribed (1.01.2011) by Value-Added Tax Regulations 2010 (S.I. No. 639 of 2010), regs. 3 and 4, in effect as per reg. 1(2).

7.

Treatment of persons as not accountable.

[VATA s. 8(6)]

7.— An accountable person (other than a person to whom section 8 applies) may, in accordance with regulations, be treated for the purposes of this Act as a person who is not an accountable person if the Revenue Commissioners are satisfied that, in the absence of an election under section 6(1) , the person would not be an accountable person.

8.

Cancellation of election.

[VATA s. 8(5) and (5A)]

8.— F12 [ (1)( a ) Provision may be made by regulations for the cancellation, at the request of a person, of an election made by the person under this Part and for the payment by him or her to the Revenue Commissioners, as a condition of such cancellation, of such a sum as is calculated in accordance with paragraph (b) .

( b ) The sum referred to in paragraph (a) is calculated by the formula

(A + B) C

where

A is the amount of tax repaid to the person referred to in paragraph (a) for the period for which the election has effect in respect of tax borne or paid in relation to the supply of goods or services, other than services of the kind referred to in paragraph 11 of Schedule 3 ,

B is the tax deductible in accordance with Chapter 1 of Part 8 in respect of intra-Community acquisitions made by that person during that period, and

C is the net total amount of tax (if any) paid by such person in accordance with Chapter 3 of Part 9 in relation to the supply of goods or services (other than services of the kind referred to in paragraph 11 of Schedule 3 ) by that person in that same period. ]

(2)( a) Notwithstanding subsection (1), provision may be made by regulations for the cancellation, at the request of a person who supplies services of a kind referred to in paragraph 11 of Schedule 3 , of an election made by the person under this Part and for the payment by him or her to the Revenue Commissioners, in addition to any amount payable in accordance with subsection (1), of such an amount (in this subsection referred to as the “cancellation amount”), as shall be determined in accordance with paragraph (b), as a condition of cancellation and the cancellation amount shall be payable as if it were tax due in accordance with Chapter 3 of Part 9 for the taxable period in which the cancellation comes into effect.

( b)(i) Where the person referred to in paragraph (a)

(I) was entitled to deduct tax in accordance with Chapter 1 of Part 8 in respect of the acquisition, purchase or development of immovable goods used by that person in the course of a supply of services of a kind referred to in paragraph 11 of Schedule 3 , or

(II) would be entitled to deduct tax in accordance with Chapter 1 of Part 8 in respect of the acquisition, as a result of a transfer to that person, of immovable goods used by him or her in the course of a supply of services of a kind referred to in paragraph 11 of Schedule 3 , if that tax had been chargeable but for the application of section 20(2)(c) on that transfer,

then, in respect of each such acquisition, purchase or development, an amount (referred to in this subsection as the “adjustment amount”) shall be calculated in accordance with subparagraph (ii) and the cancellation amount shall be the sum of the adjustment amounts so calculated or, if there is only one such adjustment amount, that amount: but if there is no adjustment amount, the cancellation amount is nil.

(ii) The adjustment amount shall be determined by the formula—

F12 [ D ]× (10 — F12 [ E ])

10

where—

F12 [ D ] is—

(I) the amount of tax deductible in respect of such acquisition, purchase or development of such immovable goods, or

(II) the amount of tax that would be deductible in respect of such acquisition of such immovable goods if section 20(2)(c) had not applied to the transfer of such immovable goods,

and

F12 [ E ] is the number of full years for which such immovable goods were used by the person in the course of the supply of services of a kind referred to in paragraph 11 of Schedule 3 : but if such number of full years is in excess of 10, such adjustment amount shall be deemed to be nil.

( c) For the purposes of paragraph (b), a full year shall be any continuous period of 12 months.

( d) This subsection does not apply to immovable goods acquired or developed on or after 1 July 2008.

Annotations:

Amendments:

F12

Substituted (6.02.2011) by Finance Act 2011 (6/2011), s. 61 and sch. 2 par. 3, commenced on enactment.

Chapter 3

Rules for intra-Community acquisitions

9.

Intra-Community acquisitions and accountable persons.

[VATA s. 8(1A)( a), ( b), ( c) and ( d)]

9.—(1) Where a person engages in the intra-Community acquisition of goods in the State in the course or furtherance of business, he or she shall be—

( a) an accountable person, and

( b) accountable for and liable to pay the tax chargeable.

(2) Subject to subsection (3) and F13 [ sections 12(3) and (5) , ] and 17(1) , and notwithstanding subsection (1), a person for whose intra-Community acquisitions of goods (being goods other than new means of transport or goods subject to a duty of excise) the total consideration for which has not exceeded and is not likely to exceed €41,000 in any continuous period of 12 months shall not, unless the person otherwise elects and then only during the period for which such election has effect, be an accountable person.

(3) Where section 5(1) applies to a person referred to in subsection (2), then subsection (2) shall not apply to the person unless section 6(1) also applies to him or her.

(4) Subject to subsection (5), a person who is an accountable person by virtue of this section or section 10 and who is a person referred to in section 6(1)(a) or (b) shall be deemed to be an accountable person only in respect of—

( a) intra-Community acquisitions of goods which are made by him or her, and

( b) any services of the kind referred to in F13 [ section 12 or 17(1) ] which are received by him or her.

(5) A person may elect that subsection (4) shall not apply to him or her.

(6) Subject to subsection (7), a person who is an accountable person by virtue of this section or section 10 and who is a person referred to in section 17(2) shall be deemed to be an accountable person only in respect of—

( a) intra-Community acquisitions of goods which are made by him or her,

( b) racehorse training services which are supplied by him or her, and

( c) any services of the kind referred to in F13 [ section 12 or 17(1) ] which are received by him or her.

(7) A person may elect that subsection (6) shall not apply to him or her.

Annotations:

Amendments:

F13

Substituted (1.01.2011) by European Union (Value-Added Tax) Regulations 2010 (S.I. No. 612 of 2010), reg. 3(d) and table, in effect as per reg. 1(2).

10.

Certain supplies of goods — supplier not established in the State.

[VATA s. 8(1A)( f) and ( g)]

10.—(1) Where a person not established in the State supplies gas through the natural gas distribution system, F14 [ or heat or cooling energy through heating or cooling networks, ] or electricity, to a recipient in the State, and where the recipient is—

( a) a taxable person who carries on a business in the State, or

( b) a public body,

then that recipient shall, in relation to that supply, be an accountable person or be deemed to be an accountable person and shall be liable to pay the tax chargeable as if the recipient supplied those goods in the course or furtherance of business.

(2) Where a person not established in the State supplies goods in the State which are installed or assembled, with or without a trial run, by or on behalf of the person, and where the recipient of the supply of those goods is—

( a) a taxable person who carries on a business in the State, or

( b) a public body,

then that recipient shall, in relation to that supply, be an accountable person or be deemed to be an accountable person and shall be liable to pay the tax chargeable as if the recipient supplied those goods in the course or furtherance of business.

Annotations:

Amendments:

F14

Inserted (31.03.2012) by Finance Act 2012 (9/2012), s. 138 and sch. 6 par. 3(b), commenced as per par. 4(b).

11.

Other provisions in relation to goods.

[VATA s. 8(2B) and (3D)( b)]

11.—(1) Where a person is an accountable person only because of an intra-Community acquisition of a new means of transport, then the person shall not, unless he or she so elects, be an accountable person for the purposes of this Act except for section 79(2) or (3).

(2) Where—

( a) a person is an accountable person only because of an intra-Community acquisition of excisable products, and

( b) by virtue of the acquisition, and in accordance with F15 [ Chapters 2A and 2B of Part 2 of Finance Act 2001 ] , and any other enactment which is to be construed together with that Chapter, the duty of excise on those products is payable in the State,

then the person shall not, unless he or she so elects, be an accountable person for any purposes of this Act except for section 79(4) .

(3) A person who is not established in the State shall, unless the person opts to register in accordance with section 65 , be deemed not to have made an intra-Community acquisition or a supply of goods in the State where the only supplies by him or her in the State are in the circumstances set out in section 23 .

Annotations:

Amendments:

F15

Substituted (25.12.2017) by Finance Act 2017 (41/2017), s. 58(b), commenced on enactment.

Chapter 4

Services supplied in the State by persons established outside the State

12.

Services received from abroad and accountable persons.

[VATA s. 8(1A)( aa) and ( ab) and (2)( b) and ( c)]

12.—(1) Where—

( a) a taxable person who carries on a business in the State, or a person to whom a registration number has been assigned in accordance with section 65(2) , receives a service from a supplier established outside the State, and

( b) the place of supply of the service (as determined in accordance with section 34(a) ) is the State,

then the person is accountable for, and liable to pay, the tax chargeable in the State as if he or she had supplied that service for consideration in the course or furtherance of business.

(2) Where—

( a) a taxable person who carries on a business in the State, or

( b) a public body,

receives a service F16 [ (other than a service of a kind referred to in section 33(2)(b) , (ba) or (c) ) ] from a supplier not established in the State, and the place of supply of the service (as determined in accordance with section 34(c) ) is the State, then the recipient of the service is accountable for, and liable to pay, the tax chargeable in the State as if that recipient had supplied the service for consideration in the course or furtherance of business.

(3) Subject to subsection (4), a person who is an accountable person by virtue of this section or F17 [ section 17(1) ] and who is a person referred to in section 6(1)(a) or (b) shall be deemed to be an accountable person only in respect of—

( a) any intra-Community acquisitions of goods which are made by him or her, and

( b) services of the kind referred to in this section or F17 [ section 17(1) ] which are received by him or her.

(4) A person may elect that subsection (3) shall not apply to him or her.

(5) Subject to subsection (6), a person who is an accountable person by virtue of this section or F17 [ section 17(1) ] and who is a person referred to in section 17(2) shall be deemed to be an accountable person only in respect of—

( a) any intra-Community acquisitions of goods which are made by him or her,

( b) racehorse training services which are supplied by him or her, and

( c) services of the kind referred to in this section or F17 [ section 17(1) ] which are received by him or her.

(6) A person may elect that subsection (5) shall not apply to him or her.

Annotations:

Amendments:

F16

Substituted (19.12.2018) by Finance Act 2018 (30/2018), s. 62 and sch. 2 para. 2, in effect as per para. 5(d).

F17

Substituted (1.01.2011) by European Union (Value-Added Tax) Regulations 2010 (S.I. No. 612 of 2010), reg. 3(d) and table, in effect as per reg. 1(2).

13.

Certain supplies of services — supplier not established in the State.

[VATA s. 8(2)( aa)]

13.— F18 [ ]

Annotations:

Amendments:

F18

Deleted (1.01.2011) by European Union (Value-Added Tax) Regulations 2010 (S.I. No. 612 of 2010), reg. 3(a), in effect as per reg. 1(2).

Chapter 5

Supplementary provisions

14.

The State and public bodies.

[VATA s. 8(1A)( e) and (2A) and FA 2010 s. 117(2)( b) and ( c)]

14.—(1) For the purposes of sections 9 and 10 , where an intra-Community acquisition is effected in the State by a public body, the acquisition shall be deemed to have been effected in the course or furtherance of business.

(2) Notwithstanding section 3 but subject to subsection (3), the State or any public body shall not be treated as a taxable person acting in that capacity in respect of any activity or transaction that is carried out by it in, or is closely linked to, the exercise by the State or that public body of particular rights or powers conferred on it by any enactment, except where—

( a) that activity is listed in Annex I of the VAT Directive (the text of which Annex is contained in Schedule 6 ) and is carried out by the State or the public body on a more than negligible scale, or

( b) not treating the State or that public body as a taxable person in respect of that activity or transaction creates or would likely create a significant distortion of competition.

(3)( a) For the purposes of this subsection “community facilities” means—

(i) facilities for taking part in sporting or physical education activities and services closely related to the provision of such facilities (other than facilities for taking part in golf and for this purpose facilities for taking part in golf do not include facilities for taking part in pitch and putt), and

(ii) the hiring of halls, meeting rooms, grounds and other facilities of a similar nature to non-profit making sporting, cultural, social and community organisations.

( b) Subsection (2), in so far as it applies to the supply of community facilities, comes into operation on such day or days as the Minister may by order appoint and different days may be so appointed for different purposes or different community facilities.

( c) Neither the State nor any local authority shall be an accountable person with respect to the supply by it of a community facility until the coming into operation of an order under paragraph (b) in respect of that community facility.

Annotations:

Editorial Notes:

E5

Power pursuant to subs. (3)(b) exercised (1.01.2013) by Value-Added Tax Consolidation Act 2010 (Section 14(2)) (Commencement) Order 2012 (S.I. No. 392 of 2012).

2. The 1st day of January 2013 is appointed as the day on which subsection (2) of section 14 of the Value-Added Tax Consolidation Act 2010 (No. 31 of 2012) comes into operation in so far as that subsection applies to the supply of community facilities within the meaning of subsection (3)(a)(i) of that section.

15.

VAT groups.

[VATA s. 8(8)]

15.—(1) Subject to subsection (2), where the Revenue Commissioners are satisfied that 2 or more persons established in the State, at least one of whom is a taxable person, are closely bound by financial, economic and organisational links and it seems necessary or appropriate to them for the purpose of efficient and effective administration (including collection) of the tax to do so, then, for the purpose of this Act, the Commissioners may, whether following an application on behalf of those persons or otherwise—

( a) by notice in writing (in this section referred to as a “group notification”) to each of those persons deem them to be a single taxable person (in this section referred to as a “group”), and the persons so notified shall then be regarded as being in the group for as long as this subsection applies to them, but section 65 shall apply in respect of each of the members of the group, and—

(i) one of those persons, who shall be notified accordingly by the Commissioners, shall be responsible for complying with this Act in respect of the group, and

(ii) all rights and obligations arising under this Act in respect of the transactions of the group shall be determined accordingly,

and

( b) make each person in the group jointly and severally liable to comply with this Act and regulations (including the provisions requiring the payment of tax) that apply to each of those persons and subject to the penalties under this Act to which they would be subject if each such person were liable to pay to the Commissioners the whole of the tax chargeable, apart from regulations under this section, in respect of each such person.

(2) This section shall not apply in the case of—

( a) the supply of immovable goods by any person in the group to any other person in the group,

( b) the requirement to issue an invoice or other document, in accordance with Chapter 2 of Part 9 , in respect of supplies to persons other than supplies between persons who are jointly and severally liable to comply with this Act in accordance with subsection (1)(b),

( c) the requirement to furnish a statement in accordance with section 82 F19 [ or 83 ] , or

( d) the transfer of ownership of goods specified in section 20(2)(c) from any person in the group to any other person in the group, except where, apart from this section, each of the persons whose activities are deemed to be carried on by the group is an accountable person.

(3) The Revenue Commissioners may, by notice in writing to each person in the group, as on and from the date specified in the notice (which date shall not be earlier than the date of issue of the notice) cancel the group notification of the group.

(4) As on and from the date on which the group notification of the group is cancelled under subsection (3), this Act and regulations shall apply to all the persons who were members of the group as if that group notification had not been issued, but without prejudice to the liability of any of those persons for tax or penalties in respect of anything done or not done during the period for which the group notification was in force.

(5) Where—

( a) a person in the group (in this section referred to as the “landlord”) having acquired an interest in, or developed, immovable goods to which section 4 of the repealed enactment applied, whether such acquisition or development occurred before or after the landlord became a person in the group, subsequently surrenders possession of those immovable goods, or any part of them, to another person in the group (in this section referred to as the “occupant”) where the surrender of possession, if it were to a person not in the group, would not constitute a supply of immovable goods in accordance with section 4 of the repealed enactment, and

( b) either the landlord or the occupant subsequently ceases to be a person in the group (in this section referred to as a “cessation”),

then, subject to subsection (6), if the landlord has not exercised the landlord’s option to tax in accordance with section 97 in respect of the letting of those immovable goods at the time of the cessation or does not have a waiver of his or her right to exemption from tax in accordance with section 96(2) to (5) still in effect at the time of the cessation—

(i) the surrender of possession, or

(ii) if that landlord surrendered possession of those immovable goods more than once to another person in the group, the first such surrender of possession,

shall be deemed to occur when that first such cessation (in this section referred to as the “relevant cessation”) takes place.

(6) For the purposes of subsection (5), where the landlord’s waiver of his or her right to exemption from tax in accordance with section 96(2) to (5) has been cancelled before a surrender of possession of immovable goods to another person in the group ends, that surrender of possession shall be deemed to take place on the date of the relevant cessation.

(7) The Revenue Commissioners may make regulations as seem to them to be necessary for the purposes of this section.

Annotations:

Amendments:

F19

Inserted (6.02.2011) by Finance Act 2011 (6/2011), s. 61 and sch. 2 par. 4, commenced on enactment.

Editorial Notes:

E6

Procedure for application for registration as group in accordance with section prescribed (1.01.2011) by Value-Added Tax Regulations 2010 (S.I. No. 639 of 2010), reg. 4, in effect as per reg. 1(2).

16.

Reverse charge for certain supplies.

[VATA s. 8(1B), (1C) and (1D)]

16.—(1)( a) In this subsection—

“NAMA” has the meaning assigned to it by the National Asset Management Agency Act 2009;

“NAMA entity” means a person or body of persons to which NAMA is connected within the meaning of section 97(3) ;

“recipient”, in relation to a relevant supply, means NAMA and any NAMA entity;

“relevant supply” means a supply of goods being a transfer of ownership of goods effected by a vesting order made in accordance with section 153 of the National Asset Management Agency Act 2009;

“supplier”, in relation to a relevant supply, means the chargor referred to in section 153 of the National Asset Management Agency Act 2009.

( b) Where a relevant supply occurs—

(i) the recipient shall, in relation to that supply, be an accountable person and shall be liable to pay the tax chargeable as if that recipient made that supply in the course or furtherance of business, and

(ii) the supplier shall not be accountable for or liable to pay such tax in relation to that supply.

(2)( a) In this subsection—

“allowance” has the meaning assigned to it by Article 3 of the Directive;

“Directive” means Directive 2003/87/EC of the European Parliament and of the Council of 13 October 2003 2 (as amended) establishing a scheme for greenhouse gas emission allowance trading within the Community and amending Council Directive 96/61/EC;

“greenhouse gases” has the meaning assigned to it by Article 3 of the Directive;

“greenhouse gas emission allowances” means allowances to emit greenhouse gases transferable in accordance with the Directive and other units that may be used by operators for compliance with the Directive;

“operator” has the meaning assigned to it by Article 3 of the Directive.

( b) Where a taxable person who carries on a business in the State (in this subsection referred to as a “recipient”) receives greenhouse gas emission allowances from another taxable person who carries on a business in the State, then—

(i) the recipient shall, in relation to that supply, be an accountable person or be deemed to be an accountable person and shall be liable to pay the tax chargeable as if that recipient made that supply in the course or furtherance of business, and

(ii) the person who supplied those greenhouse gas emission allowances shall not be accountable for or liable to pay such tax in respect of that supply.

(3)( a) Paragraph (b) and sections 59(2)(i) and 66(4) shall be construed together with Chapter 2 of Part 18 of the Taxes Consolidation Act 1997.

( b) Where a principal to whom F20 [ section 530A ] of the Taxes Consolidation Act 1997 applies (other than a principal to whom subparagraphs (ii) or (iii) of F20 [ section 530A(1)( b ) ] of the Taxes Consolidation Act 1997 applies) receives services consisting of construction operations (as defined in paragraphs ( a) to ( f) of section 530(1) of that Act) from a subcontractor, then—

(i) that principal shall, in relation to that supply, be an accountable person or be deemed to be an accountable person and shall be liable to pay the tax chargeable as if that principal supplied those services in the course or furtherance of business, and

(ii) the subcontractor shall not be accountable for or liable to pay such tax in respect of that supply.

F21 [ (4)( a ) In this subsection

dealing in scrap metal means the purchase, sale, resale or recovery of scrap metal;

recovery , in relation to scrap metal, means any activity carried on for the purposes of reclaiming, recycling or re-using, in whole or in part, scrap metal and any activities related to such reclamation, recycling or re-use;

scrap metal includes scrapped metal and metal waste originating from, or extracted from, the processing of metals, metal derived from vehicles, metal derived from construction and demolition waste, machine parts and metal items no longer useable in their original form due to their breaking, obsolescence, shearing, wearing or the like, and also includes goods listed in paragraphs (1) to (3) of Annex VI of the VAT Directive.

( b ) Notwithstanding section 56 , where a taxable person carries on a business in the State, which consists of or includes dealing in scrap metal (in this subsection referred to as a recipient ) and he or she receives a supply of scrap metal from another taxable person who carries on a business in the State, then

(i) the recipient shall, in relation to that supply, be an accountable person or be deemed to be an accountable person and shall be liable to pay the tax chargeable as if that recipient made that supply in the course or furtherance of business, and

(ii) the person who supplied the scrap metal shall not be accountable for or liable to pay such tax in respect of that supply. ]

F22 [ (5)( a ) In this subsection construction work , in relation to immovable goods, includes

(i) construction, extension, alteration and demolition services, and

(ii) engineering work or other operations which adapt those immovable goods for materially altered use.

( b ) Where an accountable person supplies construction work in the State to a taxable person (in this subsection referred to as a recipient ) to whom the accountable person is connected (within the meaning of section 97(3) ), then

(i) the recipient shall, in relation to such supplies, be an accountable person or be deemed to be an accountable person and shall be liable to pay the tax chargeable as if that recipient made that supply in the course or furtherance of business, and

(ii) the person who supplied the construction work shall not be accountable for or liable to pay such tax in respect of those supplies. ]

F23 [ (6)(a) In this subsection

gas means gas supplied through the natural gas distribution system.

(b) Where a taxable person who carries on a business in the State makes a supply of gas or of electricity to a taxable dealer who carries on a business in the State (in this subsection referred to as a recipient ), then

(i) the recipient shall, in relation to that supply, be an accountable person or be deemed to be an accountable person and shall be liable to pay the tax chargeable as if that recipient made that supply in the course or furtherance of business, and

(ii) the person who supplied that gas or electricity shall not be accountable for or liable to pay such tax in respect of that supply.

(7)(a) In this subsection

a gas or an electricity certificate means an electronic document which conveys information about the source and production of energy.

(b) Where a taxable person who carries on a business in the State makes a supply of a gas or an electricity certificate to another taxable person who carries on a business in the State (in this subsection referred to as a recipient ), then

(i) the recipient shall, in relation to that supply, be an accountable person or be deemed to be an accountable person and shall be liable to pay the tax chargeable as if that recipient made that supply in the course or furtherance of business, and

(ii) the person who supplied that gas or electricity certificate shall not be accountable for or liable to pay such tax in respect of that supply. ]

Annotations:

Amendments:

F20

Substituted (1.01.2012) by Finance Act 2011 (6/2011), s. 20(3), in effect as per s. 20(4) and S.I. No. 651 of 2011.

F21

Inserted (1.05.2011) by Finance Act 2011 (6/2011), s. 59(1)(a), commenced as per s. 59(2).

F22

Inserted (1.05.2012) by Finance Act 2012 (9/2012), s. 86(1)(a), commenced as per s. 86(2).

F23

Inserted (1.01.2016) by Finance Act 2015 (52/2015), s. 52(1)(a), commenced as per s. 52(2).

2 OJ No. L 275, 25.10.2003, p. 32

17.

Other provisions in relation to services.

[VATA s. 8(2)( d) and (3A)]

17.—(1)( a) In this subsection—

“premises provider” means a person who owns, occupies or controls land, and references to the premises provider’s land mean the land that is so owned, occupied or controlled;

“relevant office” means the office of the Revenue Commissioners which would normally deal with the examination of the records kept by the premises provider in accordance with Chapter 7 of Part 9 .

( b) Where a premises provider allows, in the course or furtherance of business, a person not established in the State to supply goods for consideration in the course or furtherance of business (in this subsection referred to as a “mobile trader”) on the premises provider’s land for a period of less than F24 [ 28 consecutive days ], then that premises provider shall, not later than 14 days before the day when the mobile trader is allowed to supply goods on that land, furnish to the Revenue Commissioners, at the relevant office, the following particulars:

(i) the name and address of the mobile trader;

(ii) the dates on which the mobile trader intends to supply goods on that land;

(iii) the address of that land; and

(iv) any other information as may be specified in regulations.

F25 [ ( c ) Where a premises provider allows, in the course or furtherance of business, a promoter not established in the State to supply on the premises provider s land

F26 [ (i) services consisting of the admission to, and the provision of any ancillary services related to, a cultural, artistic, entertainment or similar event, and ]

(ii) where, in accordance with paragraph (g) or (ga) of section 34 , the place of supply of those services is where the event concerned actually takes place,

then that premises provider shall, not later than 14 days before such services are scheduled to begin, furnish to the Revenue Commissioners, at the relevant office, the following particulars:

(I) the name and address of the promoter;

(II) details (including the dates, duration and venue) of the event or performance commissioned or procured by the promoter in the provision of that service; and

(III) any other information related to the promoter or the event or performance, as may be specified in regulations. ]

( d) Where a premises provider fails to provide to the Revenue Commissioners true and correct particulars as required in accordance with paragraph (b) or (c), then the Commissioners may, where it appears necessary to them to do so for the protection of the revenue, make the premises provider jointly and severally liable with a mobile trader or promoter, as the case may be, for the tax chargeable in respect of supplies made by that mobile trader or promoter on the premises provider’s land, and in those circumstances the Commissioners shall notify the premises provider in writing accordingly.

( e) A premises provider who has been notified in accordance with paragraph (d) shall be deemed to be an accountable person and shall be liable to pay the tax referred to in that paragraph as if it were tax due in accordance with Chapter 3 of Part 9 by the premises provider for the taxable period within which the supplies are made by the mobile trader or promoter, but the premises provider shall not be liable to pay tax referred to in paragraph (d) which the Revenue Commissioners are satisfied was accounted for by a mobile trader or promoter.

(2)( a) Where a person who supplies services consisting of the training of horses for racing, the consideration for which has exceeded the services threshold in any continuous period of 12 months, would, but for the supply of such services, be a farmer, the person shall be deemed to be an accountable person only in respect of—

(i) the supply of those services,

(ii) any intra-Community acquisitions of goods made by him or her, and

(iii) any services of the kind referred to in subsection (1) or F25 [ section 12 ] received by him or her.

( b) In the absence of an election referred to in section 6(1), the person referred to in paragraph (a) shall be deemed not to be an accountable person in relation to the supply of any of the goods or services specified in—

(i) paragraph (a) of the definition of “farmer” in section 4(1) , and

(ii) paragraph (b)(i) and (iii) of that definition.

Annotations:

Amendments:

F24

Substituted (6.02.2011) by Finance Act 2011 (6/2011), s. 56, commenced on enactment.

F25

Substituted (1.01.2011) by European Union (Value-Added Tax) Regulations 2010 (S.I. No. 612 of 2010), reg. 3(b), (d) and table, in effect as per reg. 1(2).

F26

Substituted (27.03.2013) by Finance Act 2013 (8/2013), s. 105 and sch. 2 par. 3(a), commenced as per par. 5(a).

18.

Distortion of competition, deemed taxable supplies, etc.

[VATA s. 8(3C), (3E) and (7)]

18.—(1)( a) Notwithstanding sections 5(1) and 52(1) but subject to section 6(1) , where a person (in this subsection referred to as the “relevant person”) supplies services which are exempt in accordance with F27 [ section 52 and, paragraph 3(4) or 4(3) of Schedule 1 ] , then an authorised officer (being an officer of the Revenue Commissioners authorised by them in writing for the purposes of this subsection) shall—

(i) if the officer is satisfied that that supply of those services has created or is likely to create a distortion of competition such as to place at a disadvantage a commercial enterprise which is an accountable person supplying similar-type services, or

(ii) if the officer is satisfied that that supply of those services is managed or administered by or on behalf of another person who has a direct or indirect beneficial interest (either directly or through an intermediary) in the supply of those services,

make a determination in relation to some or all of such supplies as specified in that determination deeming—

(I) the relevant person to be supplying such supplies as specified in that determination in the course or furtherance of business,

(II) the relevant person to be an accountable person in relation to the provision of such supplies as specified in that determination, and

(III) such supplies as specified in that determination to be taxable supplies to which the rate specified in F28 [ F27 [ paragraph (a) , (c) or (ca) ] , as appropriate, of section 46(1) ] refers.

( b) Subject to paragraph (c), where a determination is made under paragraph (a), the Revenue Commissioners shall, as soon as may be after the making of the determination, issue a notice in writing of that determination to the relevant person, and such determination shall have effect from such date as may be specified in the notice of that determination.

( c) A determination referred to in paragraph (b) shall have effect no sooner than the start of the next taxable period following that in which the notice referred to in that paragraph was issued in respect of that determination.

( d) Where an authorised officer is satisfied that the conditions that gave rise to the making of a determination under paragraph (a) no longer apply, the officer shall cancel that determination by notice in writing to the relevant person, and that cancellation shall have effect from the start of the next taxable period following that in which the notice issued.

(2) Where any goods or services are provided by a club or other similar organisation in respect of a payment of money by any of its members, then, for the purposes of this Act—

( a) the provision of the goods or services shall be deemed to be a supply by the club or other organisation of the goods or services, as the case may be, in the course or furtherance of business carried on by it, and

( b) the money shall be deemed to be consideration for the supply.

(3)( a) In paragraph (b)“licensee” means—

(i) where the licence is held by the nominee of a body corporate, the body corporate,

(ii) in any other case, the holder of the licence.

( b) The licensee of any premises (being premises in respect of which a licence for the sale of intoxicating liquor on or off those premises was granted)—

(i) shall be deemed to be the promoter of any dance held, during the subsistence of that licence, on those premises, and

(ii) shall be deemed to have received the total money (excluding tax) paid by those admitted to that dance together with any other consideration received or receivable in connection with the dance.

Annotations:

Amendments:

F27

Substituted (21.12.2015) by Finance Act 2015 (52/2015), s. 54(a), commenced on enactment.

F28

Substituted (1.07.2011) by Finance (No. 2) Act 2011 (8/2011), s. 3(d), commenced as per s. 3.

PART 3

Taxable Transactions

Chapter 1

Supply of goods

19.

Meaning of supply of goods.

[VATA s. 3(1), (1C) and (2)]

19.—(1) In this Act “supply”, in relation to goods, means—

( a) the transfer of ownership of the goods by agreement (including the transfer of ownership of the goods to a person supplying financial services of the kind specified in F29 [ paragraph 6(1) ( e ) of Schedule 1 ] where those services are supplied as part of an agreement of the kind referred to in paragraph (c) in respect of the goods),

( b) the sale of movable goods pursuant to a contract under which commission is payable on purchase or sale by an agent or auctioneer who concludes agreements in the agent’s or auctioneer’s own name but on the instructions of, and for the account of, another person,

( c) the handing over of the goods to a person pursuant to an agreement which provides for the renting of the goods for a certain period subject to a condition that ownership of the goods shall be transferred to the person on a date not later than the date of payment of the final sum under the agreement,

( d)   F30 [ ]

( e) the transfer of ownership of the goods pursuant to—

(i) their acquisition (otherwise than by agreement) by or on behalf of the State or a local authority, or

(ii) their seizure by any person acting under statutory authority,

( f) the application (otherwise than by way of disposal to another person) by a person for the purposes of any business carried on by him or her of the goods, being movable goods which were developed, constructed, assembled, manufactured, produced, extracted, purchased, imported or otherwise acquired by him or her or by another person on his or her behalf, except where tax chargeable in relation to the application would, if it were charged, be wholly deductible under Chapter 1 of Part 8 ,

( g) F31 [ subject to subsection (1A) , ] the appropriation of the goods by an accountable person for any purpose other than the purpose of his or her business or the disposal of the goods free of charge by an accountable person where—

(i) tax chargeable in relation to those goods—

(I) upon their purchase, intra-Community acquisition or importation by the accountable person, or

(II) upon their development, construction, assembly, manufacture, production, extraction or application under paragraph (f),

as the case may be, was wholly or partly deductible under Chapter 1 of Part 8 , or

(ii) the ownership of those goods was transferred to the accountable person in the course of a transfer of a business or part thereof and that transfer of ownership was deemed not to be a supply of goods in accordance with section 20(2) ,

and

( h) the transfer by a person of the goods from his or her business in the State to the territory of another Member State for the purposes of the person’s business, or a transfer of a new means of transport by a person in the State to the territory of another Member State, other than for the purposes of any of the following:

(i) the transfer of the goods in question under the circumstances specified in section 29(1)(b) or (d) or 30 ;

(ii) the transfer of the goods to another person under the circumstances specified in paragraphs 1(1) to (3), 3(1) and (3) and 7(1) to (4) of Schedule 2 and the transfer of the goods referred to in paragraphs 4(2), (4) and (5) and 5(2) of Schedule 2 ;

(iii) the transfer of the goods for the purpose of having a service carried out on them where the goods which were so transferred by the person are, F32 [ after being assigned a valuation or ] after being worked on, returned to that person in the State;

(iv) the temporary use of the goods in question in the supply of a service by the person in that other Member State;

(v) the temporary use of the goods in question, for a period not exceeding 24 months, in that other Member State, where the importation into that other Member State of the same goods with a view to their temporary use would be eligible for full exemption from import duties.

F31 [ (1A) Subsection (1)(g) does not apply in any case where the goods appropriated by an accountable person for any purpose other than the purposes of his or her business are immovable goods that are acquired or developed by an accountable person on or after 1 January 2011. ]

(2) For the purposes of this Act “supply”, in relation to immovable goods, shall be regarded as including the transfer in substance of—

( a) the right to dispose of the immovable goods as owner, or

( b) the right to dispose of the immovable goods.

(3) Where 3 or more persons enter into agreements concerning the same goods and fulfil those agreements by a direct supply of the goods by the first person in the chain of sellers and buyers to the last buyer, then the supply to that last buyer shall be deemed, for the purposes of this Act, to constitute a simultaneous supply by each seller in the chain.

Annotations:

Amendments:

F29

Substituted (6.02.2011) by Finance Act 2011 (6/2011), s. 61 and sch. 2 par. 5, commenced on enactment.

F30

Deleted (1.05.2012) by Finance Act 2012 (9/2012), s. 86(1), commenced as per s. 86(2).

F31

Inserted (1.01.2011) by European Union (Value-Added Tax) Regulations 2010 (S.I. No. 612 of 2010), reg. 4(a), in effect as per reg. 1(2).

F32

Inserted (1.01.2013) by European Union (Value-Added Tax) Regulations 2012 (S.I. No. 354 of 2012), reg. 2(a), in effect as per reg. 1(2).

20.

Transfers, etc. deemed not to be supplies.

[VATA s. 3(5)( a), ( b) and ( d)]

20.—(1) For the purposes of this Act, the transfer of ownership of goods pursuant to a contract of the kind referred to in section 19(1)(c) by the person supplying financial services of the kind specified in paragraph 6(1)(e) of Schedule 1 as part of that contract shall be deemed not to be a supply of the goods.

(2) The transfer of ownership of goods—

( a) as security for a loan or debt,

( b) where the goods are held as security for a loan or debt, upon repayment of the loan or debt, or

( c) being the transfer to an accountable person of a totality of assets, or part thereof, of a business (even if that business or part thereof had ceased trading) where those transferred assets constitute an undertaking or part of an undertaking capable of being operated on an independent basis,

shall be deemed, for the purposes of this Act, not to be a supply of the goods.

(3) The disposal of goods by an insurer who has taken possession of them from the owner of the goods (in this subsection referred to as the “insured”), in connection with the settlement of a claim under a policy of insurance, being goods—

( a) in relation to the acquisition of which the insured had borne tax, and

( b) which are of such a kind or were used in such circumstances that no part of the tax borne was deductible by the insured,

shall be deemed, for the purposes of this Act, not to be a supply of the goods.

21.

Supplies made free of charge.

[VATA s. 3(1A)]

21.— Anything which is a supply of goods by virtue of section 19(1)(f), (g) or (h) shall be deemed, for the purposes of this Act, to have been effected for consideration in the course or furtherance of the business concerned except—

( a) a gift of goods made in the course or furtherance of the business (otherwise than as one forming part of a series or succession of gifts made to the same person) the cost of which to the donor does not exceed a sum specified for that purpose in regulations, or

( b) the gift, in reasonable quantity, to the actual or potential customer, of industrial samples in a form not ordinarily available for sale to the public.

Annotations:

Editorial Notes:

E7

Amount specified for the purposes of section (1.01.2011) by Value-Added Tax Regulations 2010 (S.I. No. 639 of 2010), reg. 5, in effect as per reg. 1(2).

22.

Special rules in relation to supplies of goods.

[VATA s. 3(4), (5)( c) and (7)]

22.—(1) Where an agent or auctioneer makes a sale of goods in accordance with section 19(1)(b), the transfer of those goods to that agent or auctioneer shall be deemed to be a supply of the goods to the agent or auctioneer at the time that the agent or auctioneer makes that sale.

(2) Where a person (in this subsection F33 [ ] referred to as the “owner”)—

( a) supplies financial services of the kind specified in paragraph 6(1)(e) of Schedule 1 in respect of a supply of goods within the meaning of section 19(1)(c) , and

( b) enforces the owner’s right to recover possession of the goods,

then the disposal of the goods by the owner shall be deemed, for the purposes of this Act, to be a supply of goods to which paragraph 12 of Schedule 1 does not apply.

(3)( a) Where, in the case of a business carried on, or that has ceased to be carried on, by an accountable person, goods forming part of the assets of the business are, under any power exercisable by another person (including a liquidator and a receiver), disposed of by the other person in or towards the satisfaction of a debt owed by the accountable person, or in the course of the winding up of a company, then those goods shall be deemed to be supplied by the accountable person in the course or furtherance of his or her business.

( b) A disposal of goods under this subsection shall include any assignment or surrender that is deemed to be a supply of immovable goods as provided by section 95(5) .

Annotations:

Amendments:

F33

Deleted (6.02.2011) by Finance Act 2011 (6/2011), s. 61 and sch. 2 par. 6, commenced on enactment.

23.

Supply following intra-Community acquisition.

[VATA s. 3(8)]

23.—(1) Subject to subsection (2), where a person who is not established in the State makes an intra-Community acquisition of goods in the State and makes a subsequent supply of the goods to an accountable person in the State, then the person to whom the supply is made shall be deemed, for the purposes of this Act, to have made that supply and the intra-Community acquisition shall be disregarded.

(2) Subsection (1) shall apply only where—

( a) the person who is not established in the State has not exercised his or her option to register in accordance with section 65 by virtue of section 11(3) , and

( b) the person to whom the supply is made is registered in accordance with section 65 .

Chapter 2

Intra-Community acquisitions

24.

Intra-Community acquisitions of goods.

[VATA s. 3A(1), (1A), (3) and (4)]

24.—(1) In this Act “intra-Community acquisition”, in relation to goods, means the acquisition of—

( a) movable goods (other than new means of transport)—

(i) supplied by—

(I) a person registered for value-added tax in a Member State,

(II) a person obliged to be registered for value-added tax in a Member State,

(III) a person who carries on an exempted activity in a Member State, or

(IV) a flat-rate farmer in a Member State,

(ii) supplied to a person in another Member State (other than an individual who is not a taxable person or who is not entitled to elect to be a taxable person, unless the individual carries on an exempted activity), and

(iii) which have been dispatched or transported from the territory of a Member State to the territory of another Member State as a result of such supply,

or

( b) new means of transport supplied by a person in a Member State to a person in another Member State and which has been dispatched or transported from the territory of a Member State to the territory of another Member State as a result of being so supplied.

(2) An intra-Community acquisition of goods shall be deemed not to occur where the supply of those goods is subject to value-added tax referred to in the VAT Directive in the Member State of dispatch under the provisions implementing Articles 4 and 35, first subparagraph of Article 139(3) and Articles 311 to 341 of that Directive in that Member State.

(3) For the purposes of this section and section 32

( a) a supply in the territory of another Member State shall be deemed to have arisen where, under similar circumstances, a supply would have arisen in the State under Chapter 1 or Chapter 1 of Part 4 (including either of those Chapters as read with section 2(3) ),

( b) an activity in another Member State shall be deemed to be an exempted activity where the same activity, if carried out in the State, would be an exempted activity,

( c) a person shall be deemed to be a flat-rate farmer in another Member State where, under similar circumstances, the person would be a flat-rate farmer in the State F34 [ ], and

( d) a person shall be deemed to be a taxable person or a person who is entitled to elect to be a taxable person in another Member State where, under similar circumstances, the person would be an accountable person or entitled to elect to be an accountable person in the State in accordance with Part 2 .

(4) Where—

( a) goods are dispatched or transported from outside the Community to a person in the State who is not registered for tax and who is not an individual, and

( b) value-added tax referred to in the VAT Directive is chargeable on the importation of those goods into another Member State,

then, for the purposes of subsection (1), the person shall be deemed to be registered for value-added tax in that other Member State and the goods shall be deemed to have been dispatched or transported from that other Member State.

Annotations:

Amendments:

F34

Deleted (6.02.2011) by Finance Act 2011 (6/2011), s. 61 and sch. 2 par. 7, commenced on enactment.

Chapter 3

Supply of services

25.

Meaning of supply of services.

[VATA s. 5(1) and (2)]

25.—(1) In this Act “supply”, in relation to a service, means the performance or omission of any act or the toleration of any situation other than—

( a) the supply of goods, and

( b) a transaction specified in section 20 or 22(2) .

(2) The provision of food and drink, of a kind specified in paragraph 8 of Schedule 2 , in a form suitable for human consumption without further preparation—

( a) by means of a vending machine,

( b) in the course of operating a hotel, restaurant, cafe, refreshment house, canteen, establishment licensed for the sale for consumption on the premises of intoxicating liquor, catering business or similar business, or

( c) in the course of operating any other business in connection with the carrying on of which facilities are provided for the consumption of the food or drink supplied,

shall be deemed, for the purposes of this Act, to be a supply of services and not a supply of goods.

26.

Transfer of intangible business assets deemed not to be supply of services.

[VATA s. 5(8)]

26.—(1) For the purposes of this section “accountable person” shall not include a person who is an accountable person solely by virtue of F35 [ section 9 , 10 , 12 , ] 14(1) or 17(1) .

(2) The transfer of goodwill or other intangible assets of a business, in connection with the transfer of the business or part thereof (even if that business or that part thereof had ceased trading), or in connection with a transfer of ownership of goods in accordance with section 20(2)(c) , by—

( a) an accountable person to a taxable person who carries on a business in the State, or

( b) a person who is not an accountable person to another person,

shall be deemed, for the purposes of this Act, not to be a supply of services.

Annotations:

Amendments:

F35

Substituted (1.01.2011) by European Union (Value-Added Tax) Regulations 2010 (S.I. No. 612 of 2010), reg. 3(d) and table, in effect as per reg. 1(2).

27.

Self-supply of services.

[VATA s. 5(3) and (3B)]

27.—(1) For the purposes of this Act, any of the following, if so provided by regulations, and in accordance with those regulations, shall be deemed to be a supply of services by a person for consideration in the course or furtherance of that person’s business:

( a) the use of goods (other than immovable goods) forming part of the assets of a business—

(i) for the private use of an accountable person or of such person’s staff, or

(ii) for any purposes other than those of an accountable person’s business,

where the tax on those goods is wholly or partly deductible;

( b) the supply of services carried out free of charge by an accountable person for such person’s own private use or that of such person’s staff or for any purposes other than those of such person’s business;

( c) the supply of services by an accountable person for the purposes of such person’s business where the tax on such services, were they supplied by another accountable person, would not be wholly deductible.

(2) F36 [ Subject to subsection (3) , the use of immovable goods ] forming part of the assets of a business—

( a) for the private use of an accountable person or of such person’s staff, or

( b) for any purpose other than those of the accountable person’s business,

is a taxable supply of services if—

(i) that use occurs during a period of 20 years following the acquisition or development of those goods by the accountable person, and

(ii) those goods are treated for tax purposes as forming part of the assets of the business at the time of their acquisition or development.

F37 [ (3) Subsection (2) does not apply in the case of immovable goods that are acquired or developed by an accountable person on or after 1 January 2011. ]

Annotations:

Amendments:

F36

Substituted (1.01.2011) by European Union (Value-Added Tax) Regulations 2010 (S.I. No. 612 of 2010), reg. 4(b)(i), in effect as per reg. 1(2).

F37

Inserted (1.01.2011) by European Union (Value-Added Tax) Regulations 2010 (S.I. No. 612 of 2010), reg. 4(b)(ii), in effect as per reg. 1(2).

Editorial Notes:

E8

Procedure prescribed for calculation of private use proportion of immovable goods under section (1.01.2011) by Value-Added Tax Regulations 2010 (S.I. No. 639 of 2010), reg. 7, in effect as per reg. 1(2).

28.

Special rules in relation to supplies of services.

[VATA s. 5(4) to (4B)]

28.—(1) The supply of services through a person (in this subsection referred to as the “agent”) who, while purporting to act on his or her own behalf, concludes agreements in his or her own name but on the instructions of, and for the account of, another person, shall be deemed, for the purposes of this Act, to constitute a supply of the services to and simultaneously by the agent.

(2) Where services are supplied by a person and the person is not legally entitled to recover consideration in respect of or in relation to that supply but moneys are received in respect of or in relation to such supply, then, for the purposes of this Act—

( a) the services in question shall be deemed to have been supplied for consideration, and

( b) the moneys received shall be deemed to be consideration that the person who supplied the services in question became entitled to receive in respect of or in relation to the supply of those services.

(3) Where a person is indemnified under a policy of insurance in respect of any amount payable in respect of services of a barrister or solicitor, those services shall be deemed, for the purposes of this Act, to be supplied to, and received by, such person.

F38 [ (4) Where, in the case of a business carried on, or that has ceased to be carried on, by an accountable person, services (being services that are supplied using the assets or part of the assets of an accountable person) are, under any power exercisable by another person (including a receiver or liquidator), supplied by that other person in or towards the satisfaction of a debt owed by the accountable person, or in the course of winding up of a company, then those services shall be deemed to be supplied by the accountable person in the course or furtherance of his or her business.

(5) Where another person (including a receiver or liquidator), under any power exercisable by that other person, in or towards the satisfaction of a debt owed by a taxable person, or in the course of winding up of a company

( a ) makes a supply consisting of a letting of immovable goods, being the assets or part of the assets of the taxable person, and

( b ) that other person exercises an option to tax that letting in accordance with section 97(1)(a)(i) ,

then that taxable person shall be deemed to have supplied that letting and to have exercised the option to tax. ]

Annotations:

Amendments:

F38

Inserted (27.03.2013) by Finance Act 2013 (8/2013), s. 68(a), commenced on enactment.

PART 4

Place of Taxable Transactions

Chapter 1

Place of supply of goods

29.

General rules.

[VATA s. 3(6)( a), ( b), ( c) and ( cc)]

29.—(1) For the purposes of this Act, the place where goods are supplied shall be deemed to be—

( a) in the case of goods dispatched or transported and to which section 30 does not apply, subject to subsection (2), the place where the dispatch or transportation to the person to whom the goods are supplied begins,

( b) in the case of goods which are installed or assembled, with or without a trial run, by or on behalf of the supplier, the place where the goods are installed or assembled,

( c) in the case of goods not dispatched or transported, the place where the goods are located at the time of supply,

( d) in the case of goods supplied on board vessels, aircraft or trains during transport, the places of departure and destination of which are within the Community, the place where the transport begins.

(2) Where goods referred to in subsection (1)(a) are dispatched or transported from a place outside the Community, then, for the purposes of this Act, the place of supply by the person who imports those goods and the place of any subsequent supplies shall be deemed to be where the goods are imported.

30.

Goods supplied to non-registered persons.

[VATA s. 3(6)( d)]

30.—(1)( a) Notwithstanding section 29(1)(a) or (b) or (2) but subject to paragraph (b) and subsection (2), for the purposes of this Act, the place where goods are supplied shall be deemed to be, in the case of goods dispatched or transported by or on behalf of the supplier—

(i) (I) from the territory of another Member State, or

(II) from outside the Community through the territory of another Member State into which those goods have been imported,

to a person who is not an accountable person in the State, or

(ii) from the State to a person in another Member State who is not registered for value-added tax,

the place where the goods are when the dispatch or transportation ends.

( b) Paragraph (a) shall not apply to new means of transport.

(2)( a) Subject to paragraph (b), s ubsection (1)(a) shall not apply to the supply of goods (other than goods subject to a duty of excise) where the total consideration for that supply does not exceed or is not likely to exceed—

(i) in the case of goods to which subsection (1)(a)(i) relates, €35,000 in a calendar year, unless the supplier, in accordance with regulations, elects that subsection (1)(a) shall apply, and

(ii) in the case of goods to which subsection (1)(a)(ii) relates, the amount specified in the Member State in question in accordance with Article 34 of the VAT Directive unless the supplier—

(I) elects that subsection (1)(a) shall apply, and

(II) registers and accounts for value-added tax in that Member State in respect of that supply.

( b) Paragraph (a) shall not apply to new means of transport.

31.

Gas and electricity supplies.

[VATA s. 3(6)( e) and ( f) and (6A)]

31.—(1)( a) In this subsection “taxable dealer” means an accountable person whose principal business in respect of supplies of gas through the natural gas distribution system, F39 [ of heat or cooling energy through heating or cooling networks, ] or of electricity, received by that person, is the supply of those goods for consideration in the course or furtherance of business and whose own consumption of those goods is negligible.

( b) For the purposes of this Act, the place where goods are supplied shall be deemed to be—

(i) in the case of the supply of gas through the natural gas distribution system, F39 [ of heat or cooling energy through heating or cooling networks, ] or of electricity, to a taxable dealer, whether in the State, in another Member State of the Community or outside the Community—

(I) the place where that taxable dealer has established the business concerned or has a fixed establishment for which the goods are supplied,

(II) in the absence of such a place of business or fixed establishment, the place where that taxable dealer has a permanent address or usually resides,

(ii) in the case of the supply of gas through the natural gas distribution system F39 [ situated within the territory of the Community or any network connected to such a system, of heat or cooling energy through heating or cooling networks ], or of electricity, to a customer other than a taxable dealer, the place where that customer has effective use and consumption of those goods.

(2) Where all or part of the goods referred to in subsection (1)(b)(ii) are not consumed by the customer referred to in that subsection, then, for the purposes of this Act, the goods not so consumed shall be deemed to have been supplied to that customer and used and consumed by that customer—

( a) at the place where the customer has established the business concerned or has a fixed establishment for which the goods are supplied,

( b) in the absence of such a place of business or fixed establishment, at the place where the customer has a permanent address or usually resides.

Annotations:

Amendments:

F39

Inserted (1.01.2011) by European Union (Value-Added Tax) Regulations 2010 (S.I. No. 612 of 2010), reg. 4(c), in effect as per reg. 1(2).

Chapter 2

Place of intra-Community transactions

32.

Intra-Community acquisitions of goods.

[VATA s. 3A(2) and (5)]

32.—(1) The place where an intra-Community acquisition of goods occurs shall be deemed to be the place where the goods are when the dispatch or transportation ends.

(2) Without prejudice to subsection (1) but subject to subsection (3), when the person acquiring the goods quotes his or her value-added tax registration number for the purpose of the acquisition, the place where an intra-Community acquisition of goods occurs shall be deemed to be within the territory of the Member State which issued that registration number, unless the person acquiring the goods can establish that such acquisition has been subject to value-added tax referred to in the VAT Directive in accordance with subsection (1).

(3) Subsection (2) shall not apply where—

( a) the person quotes the registration number assigned to him or her in accordance with section 65 for the purpose of making an intra-Community acquisition and the goods are dispatched or transported from the territory of a Member State directly to the territory of another Member State, neither of which is the State,

( b) the person makes a subsequent supply of the goods to a person registered for value-added tax in the Member State where the dispatch or transportation ends,

( c) the person issues an invoice in relation to that supply—

(i) in such form and containing such particulars as would be required in accordance with section 66(1) if he or she made the supply of the goods in the State to a person registered for value-added tax in another Member State,

(ii) containing an explicit reference to the EC simplified triangulation arrangements, and

(iii) indicating that the recipient of that supply is liable to account for the value-added tax due in that Member State,

and

( d) in accordance with regulations, the person includes a reference to the supply in the statement referred to in section 82 as if it were an intra-Community supply for the purposes of that section.

Chapter 3

Place of supply of services

33.

Application and interpretation of section 34 .

[VATA s. 5(5A) to (5E) and (9)]

33.—(1) For the purpose of applying section 34 , every person registered for value-added tax is a taxable person.

(2) In section 34(c) a supply of services connected with immovable goods includes—

( a) a supply of services by experts or estate agents,

( b) a provision of accommodation in a hotel or guesthouse or in an establishment having a similar function, or in a holiday camp or a site developed for use as a camping site, F40 [ ]

F41 [ ( ba ) the supply of telecommunications services, radio or television broadcasting services or electronically supplied services, together with the provision of accommodation of the kind specified in paragraph (b) , where the supply is by the provider of that accommodation acting in his or her own name, and ]

( c) a supply of services involving the preparation and co-ordination of construction work (including a supply of services of architects and of persons who provide on-site supervision).

(3) In section 34(e) “intra-Community transport of goods” means any transport of goods in respect of which the place of departure and the place of arrival are located within the territories of 2 different Member States.

(4) In section 34(k) “short-term” means the continuous possession or use of a means of transport throughout a period of not more than 30 days or, if the means of transport is a vessel, not more than 90 days.

F42 [ (4A) In paragraphs (ka) and (kb) of section 34 long-term means the continuous possession or use of a means of transport throughout a period of more than 30 days or, if the means of transport is a vessel, more than 90 days. ]

F43 [ (4B) Where, during a calendar year, the threshold referred to in paragraph (kd)(iii) of section 34 is exceeded, paragraph (kc) shall apply from the date on which that threshold is exceeded. ]

(5) The following services are specified for the purpose of section 34(m) :

( a) services that consist of transferring or assigning copyrights, patents, licences, trade marks and similar rights;

( b) advertising services;

( c) the services of consultants, engineers, consultancy firms, lawyers, accountants and other similar services, as well as data processing and the provision of information;

( d) services that consist of obligations to refrain from pursuing or exercising, wholly or partly, a business activity or a right referred to in this subsection;

( e) services that consist of financial transactions (including banking transactions and financial fund management transactions but excluding the provision of safe deposit facilities) or insurance transactions (including reinsurance transactions);

( f) services that consist of supplying staff;

( g) services that consist of hiring out movable tangible property (other than a means of transport);

F44 [ ( h ) services that consist of the provision of access to a natural gas distribution system situated within the territory of the Community or to any network connected to such a system, to the electricity system or to the heating or cooling networks, or the transmission or distribution through these systems or networks, and the provision of other services directly linked to those systems; ]

( i) telecommunications services;

( j) radio F45 [ or ] television broadcasting services;

( k) electronically supplied services.

Annotations:

Amendments:

F40

Deleted (1.01.2015) by European Union (Value-Added Tax) Regulations 2014 (S.I. No. 340 of 2014), reg. 3(a)(i), in effect as per reg. 2(1).

F41

Inserted (1.01.2015) by European Union (Value-Added Tax) Regulations 2014 (S.I. No. 340 of 2014), reg. 3(a)(i), in effect as per reg. 2(1).

F42

Inserted (1.01.2013) by European Union (Value-Added Tax) (No. 2) Regulations 2012 (S.I. No. 429 of 2012), reg. 2(a), in effect as per reg. 1(2).

F43

Inserted (1.01.2019) by European Union (Value-Added Tax) Regulations 2018 (S.I. No. 581 of 2018), reg. 3(a), in effect as per reg. 2.

F44

Substituted (1.01.2011) by European Union (Value-Added Tax) Regulations 2010 (S.I. No. 612 of 2010), reg. 4(d), in effect as per reg. 1(2).

F45

Substituted (1.01.2015) by European Union (Value-Added Tax) Regulations 2014 (S.I. No. 340 of 2014), reg. 3(a)(ii), in effect as per reg. 2(1).

34.

General rules.

[VATA s. 5(5)]

34.— The following rules apply to determine the place where, for the purposes of this Act, services are supplied:

( a) except as provided by paragraphs (c), (d), (g), (i), (j) and (k), the place of supply of services to a taxable person acting as such is—

(i) subject to subparagraph (ii), the place where the person’s business is established,

(ii) if the services are supplied to a fixed establishment of the person located in a place other than the place where the business is established, the place where the fixed establishment is located,

(iii) if there is no such place of business or fixed establishment, the place where the permanent address or usual place of residence of the taxable person who receives the services is located;

( b) except as provided by paragraphs (c) to (n), the place of supply of services to a non-taxable person is—

(i) subject to subparagraph (ii), the place where the supplier’s business is established,

(ii) if the services are supplied from a fixed establishment of the supplier located at a place other than the place where the supplier’s business is established, the place where the fixed establishment is located,

(iii) if there is no such place of business or fixed establishment, the place where the permanent address or usual place of residence of the supplier is located;

( c) if the supply of services is connected with immovable goods, or is the grant of a right to use those goods, the place where those goods are located;

( d) if the supply of services is the provision of passenger transport, the place or the places where the transport takes place;

( e) if the supply of services is the provision of the transport of goods to a non-taxable person and is not an intra-Community transport of goods, the place or places where the transport takes place;

( f) if the supply of services is the provision of intra-Community transport of goods to a non-taxable person, the place of departure of those goods (being the place where the transport of the goods actually begins) irrespective of the distance covered by the means of transport in order to reach the place where the goods are located;

F46 [ ( g ) if the supply of services, and of any ancillary services, is in respect of or related to admission to a cultural, artistic, sporting, scientific, educational, entertainment or similar event, such as a fair or exhibition, F47 [ (including the supply of tickets granting access to such an event) ] and the supply is to a taxable person, the place where that event actually takes place; ]

F48 [ ( ga ) if the supply of services, and of any ancillary services, is in respect of or related to F49 [ ] a cultural, artistic, sporting, scientific, educational, entertainment or similar activity, such as a fair or exhibition (including the supply of services of the organiser of such an activity F47 [ or the supply of tickets granting access to such an activity ] ), and the supply is to a non-taxable person, the place where that activity actually takes place; ]

( h) if the supply of services is to a non-taxable person and consists of—

(i) ancillary transport activities, such as loading, unloading and handling goods,

(ii) carrying out valuations of, or work on, movable goods, or

(iii) contract work,

the place where those services are physically carried out;

( i) if the supply of services is the provision of restaurant or catering services (other than those referred to in paragraph (j)), the place where those services are physically carried out;

( j) if the supply of services is the provision of restaurant or catering services that are physically carried out on board a ship, aircraft or train during a section of a passenger transport operation undertaken within the Community and the first scheduled point of departure within the Community of that transport operation is in the State, the State;

( k) if the supply of services consists of a short-term hiring out of a means of transport, the place where the means of transport is actually placed at the disposal of the customer;

F50 [ ( ka ) subject to paragraph (kb) , if the supply of services consists of a long-term hiring out of a means of transport to a non-taxable person, the place where that person is established or has a permanent address or usually resides;

( kb ) if

(i) the supply of services consists of a long-term hiring out of a pleasure boat to a non-taxable person, and

(ii) that service is actually provided by the supplier from his or her place of business or a fixed establishment situated in that place,

the place where the pleasure boat is actually put at the disposal of the customer; ]

F47 [ ( kc ) F51 [ subject to paragraph (kd) , ] if the supply of services consists of the provision of

(i) telecommunications services,

(ii) radio or television broadcasting services, or

(iii) electronically supplied services,

(other than the provision of those services to which paragraph (c) relates) to a non-taxable person, the place where that person is established, has a permanent address or usually resides; ]

F52 [ ( kd ) if the supply of services consists of the provision of services specified in paragraph (kc) and

(i) the supplier of the services is established or, in the absence of an establishment, has a permanent address or usually resides in only one Member State,

(ii) the services are supplied to a non-taxable person who is established, has a permanent address or usually resides in a Member State other than the Member State referred to in subparagraph (i) , and

(iii) the total value (exclusive of value-added tax) of the services provided does not, in the current calendar year, and did not, in the preceding calendar year, exceed 10,000,

paragraph (b) shall apply unless the supplier opts for the place of supply to be determined in accordance with paragraph (kc) (which option the supplier is empowered by this paragraph to exercise), and such option, if exercised, shall apply for a period of not less than 2 calendar years from the date the option is exercised; ]

( l) F53 [ ]

( m) if the supply of services consists of a supply of services specified in section 33(5) and the supply is to a non-taxable person—

(i) who is established outside the Community,

(ii) whose permanent address is outside the Community, or

(iii) who usually resides outside the Community,

the place where the person is established, has a permanent address or usually resides;

( n) if the supply of services is the provision of services to a non-taxable person by an intermediary acting in the name and on behalf of another person, the place F54 [ where the underlying transaction is supplied ].

Annotations:

Amendments:

F46

Substituted (1.01.2011) by European Union (Value-Added Tax) Regulations 2010 (S.I. No. 612 of 2010), reg. 3(c)(i), in effect as per reg. 1(2).

F47

Inserted (1.01.2015) by European Union (Value-Added Tax) Regulations 2014 (S.I. No. 340 of 2014), reg. 3(b)(i)-(iii), in effect as per reg. 2(1).

F48

Inserted (1.01.2011) by European Union (Value-Added Tax) Regulations 2010 (S.I. No. 612 of 2010), reg. 3(c)(ii), in effect as per reg. 1(2).

F49

Deleted (27.03.2013) by Finance Act 2013 (8/2013), s. 105 and sch. 2 par. 3(b), commenced as per par. 5(a).

F50

Inserted (1.01.2013) by European Union (Value-Added Tax) (No. 2) Regulations 2012 (S.I. No. 429 of 2012), reg. 2(b), in effect as per reg. 1(2).

F51

Inserted (1.01.2019) by European Union (Value-Added Tax) Regulations 2018 (S.I. No. 581 of 2018), reg. 3(b), in effect as per reg. 2.

F52

Inserted (1.01.2019) by European Union (Value-Added Tax) Regulations 2018 (S.I. No. 581 of 2018), reg. 3(b), in effect as per reg. 2.

F53

Deleted (1.01.2015) by European Union (Value-Added Tax) Regulations 2014 (S.I. No. 340 of 2014), reg. 3(b)(iv), in effect as per reg. 2(1).

F54

Substituted (6.02.2011) by Finance Act 2011 (6/2011), s. 61 and sch. 2 par. 8, commenced on enactment.

35.

Use and enjoyment provisions.

[VATA s. 5(6) to (6AF)]

35.—(1) Where, in the case of a supply of services that consists of hiring out movable goods, the place of supply of the services would, apart from this subsection, be a place outside the Community but the services are in effect used and enjoyed in the State, the place of supply of those services is nevertheless taken to be the State for the purposes of this Act.

(2) Where, in the case of a supply of services that consists of hiring out a means of transport, the place of supply of the services would, apart from this subsection, be the State but those services are in effect used and enjoyed outside the Community, the place of supply of those services is nevertheless taken to be outside the Community for the purposes of this Act.

(3) Where, in the case of a supply of services that consists of the provision to a non-taxable person of a telecommunications service, a radio or a television broadcasting service or a telephone card, the place of supply of the service or card would, apart from this subsection, be outside the Community but the service is in effect used and enjoyed in the State, the place of supply is nevertheless taken to be the State for the purposes of this Act.

(4) Where, in the case of a supply of services that consists of the provision by a taxable person established in the State of a telecommunications service or a telephone card to a non-taxable person, the place of supply of the service or card would, apart from this subsection, be outside the Community but the service is in effect used and enjoyed in the State, the place of supply is taken to be the State for the purposes of this Act.

(5) Where, in the case of a supply of services that consists of the provision to a non-taxable person of financial services (including banking services and financial fund management services but not including the provision of safe deposit facilities) or insurance services (including reinsurance), the place of supply of the services would, apart from this subsection, be a place outside the Community but the services are in effect used and enjoyed in the State, the place of supply is nevertheless taken to be the State for the purposes of this Act.

(6) Where money transfer services provided to a person in the State are in effect used and enjoyed in the State, the place of supply of intermediary services that are provided in respect of, or in relation to, those services to a principal established outside the Community, is taken to be the State for the purposes of this Act.

PART 5

Taxable Amount

Chapter 1

Taxable amount — principal provisions

36.

Definitions — Chapter 1.

[VATA s. 10(10) (in part)]

36.— In this Chapter—

“open market price”, in relation to—

( a) the supply of any goods or services (other than an interest in immovable goods which is not a freehold interest), or

( b) the intra-Community acquisition of goods,

means the price (excluding tax) which the goods might reasonably be expected to fetch or which might reasonably be expected to be charged for the services if sold in the open market at the time of the event in question;

“open market value”, in relation to a supply of goods or services—

( a) subject to paragraph (b), means the total consideration (excluding tax) that a customer, at a marketing stage which is the same as the stage at which the supply of the goods or services takes place, would reasonably be expected to pay to a supplier at arm’s length under conditions of fair competition for a comparable supply of such goods or services,

( b) if there is no comparable supply of goods or services, means—

(i) in respect of goods, an amount that is not less than the purchase price of the goods or of similar goods or, in the absence of a purchase price, the cost price, determined at the time of supply,

(ii) in respect of services, an amount that is not less than the full cost to the supplier of providing the service.

37.

General rules on taxable amount.

[VATA s. 10(1) to (2) and (9A)]

37.—(1) The amount on which tax is chargeable by virtue of section 3(a) or (c) shall, subject to this Chapter, be the total consideration which the person supplying goods or services becomes entitled to receive in respect of or in relation to such supply of goods or services, including all taxes, commissions, costs and charges whatsoever, but not including value-added tax chargeable in respect of that supply.

(2) The amount on which tax is chargeable on the intra-Community acquisition of goods by virtue of section 3(d) or (e) shall, subject to this Chapter, be the total consideration, including all taxes, commissions, costs and charges whatsoever, but not including value-added tax chargeable in respect of that acquisition.

(3) Where the consideration referred to in subsection (1) or (2) does not consist of or does not consist wholly of an amount of money, the amount on which tax is chargeable shall be the total amount of money which might reasonably be expected to be charged if the consideration consisted entirely of an amount of money equal to the open market price.

(4) F55 [ Subject to sections 91C(5) and 91E(5) , in relation to ] the tax chargeable by virtue of section 3(a) , (c), (d) or (e), where an amount is expressed in a currency other than the currency of the State—

( a) unless paragraph (b) applies, the exchange rate to be used shall be the latest selling rate recorded by the Central Bank of Ireland F56 [ or the European Central Bank ] for the currency in question at the time the tax becomes due,

( b) if there is an agreement with the Revenue Commissioners for a method to be used in determining the exchange rate, then—

(i) the exchange rate to be used shall be the exchange rate obtained using that method, and

(ii) the method so agreed shall be applied for all transactions where an amount is expressed in a currency other than that of the State until the agreement to use such method is withdrawn by the Revenue Commissioners.

Annotations:

Amendments:

F55

Substituted (1.01.2015) by European Union (Value-Added Tax) Regulations 2014 (S.I. No. 340 of 2014), reg. 3(c), in effect as per reg. 2(1).

F56

Inserted (1.01.2013) by European Union (Value-Added Tax) Regulations 2012 (S.I. No. 354 of 2012), reg. 2(b), in effect as per reg. 1(2).

38.

Determination that open market value applies.

[VATA s. 10(3A)]

38.—(1) The Revenue Commissioners may, where they consider it necessary or appropriate to do so to ensure the correct collection of the tax, make a determination that the amount on which tax is chargeable on a supply of goods or services is the open market value of that supply, if the Commissioners are satisfied—

( a) that the actual consideration in relation to that supply is—

(i) lower than the open market value of that supply where the recipient of that supply—

(I) has no entitlement to deduct tax under Chapter 1 of Part 8 ,

(II) is not entitled to deduct all of the tax chargeable on that supply, or

(III) is a flat-rate farmer,

(ii) lower than the open market value of that supply, being an exempted activity, where the supplier—

(I) engages in the course or furtherance of business in non-deductible supplies or activities within the meaning of section 61(1) , or

(II) is a flat-rate farmer,

or

(iii) higher than the open market value where the supplier—

(I) engages in the course or furtherance of business in non-deductible supplies or activities within the meaning of section 61(1) , or

(II) is a flat-rate farmer,

and

( b) that—

(i) the supplier and the recipient of that supply are persons connected by financial or legal ties, being persons who are party to any agreement, understanding, promise or undertaking whether express or implied and whether or not enforceable or intended to be enforceable by legal proceedings, or

(ii) either the supplier or the recipient of that supply exercises control (within the meaning assigned to it by section 4(2) ) over the other.

(2) For the purposes of this Act, a value determined in accordance with this section shall be deemed to be the true value of the supply to which it applies.

(3) The Revenue Commissioners may make regulations as seem to them to be necessary for the purposes of this section.

(4) An inspector of taxes, or such other officer as the Revenue Commissioners may authorise for the purpose, may make a determination under this section.

39.

General provisions on consideration.

[VATA s. 10(3)]

39.—(1) Where the consideration actually received in relation to the supply of any goods or services exceeds the amount that the person supplying the goods or services was entitled to receive, the amount on which tax is chargeable shall be the amount actually received (excluding tax chargeable in respect of the supply).

(2) Subject to subsection (3), where, in a case not coming within section 38 , the consideration actually received in relation to the supply of any goods or services is less than the amount on which tax is chargeable or no consideration is actually received, such relief may be given by repayment or otherwise in respect of the deficiency as may be provided by regulations.

(3) Subsection (2) shall not apply in the case of the letting of immovable goods which is a taxable supply of goods in accordance with section 95 .

(4) Where, following the issue of an invoice by an accountable person in respect of a supply of goods or services, the accountable person allows a reduction or discount in the amount of the consideration due in respect of that supply, the relief referred to in subsection (2) shall not be given until he or she issues the credit note required in accordance with section 67(1)(b) in respect of that reduction or discount.

Annotations:

Editorial Notes:

E9

Procedure for claiming relief under subs. (2) by reason of the default of the debtor or the early termination of a hire purchase agreement prescribed (1.01.2011) by Value-Added Tax Regulations 2010 (S.I. No. 639 of 2010), reg. 10, in effect as per reg. 1(2).

40.

Special consideration rule, triangulation.

[VATA s. 10(5A)]

40.— Where—

( a) an intra-Community acquisition is deemed to have taken place in the territory of another Member State in accordance with section 32(1) ,

( b) the intra-Community acquisition has been subject to value-added tax, referred to in the VAT Directive, in that other Member State, and

( c) the intra-Community acquisition is also deemed to have taken place in the State in accordance with section 32(2) ,

then the consideration for the intra-Community acquisition to which paragraph (c) relates shall be reduced to nil.

41.

Two-thirds rule.

[VATA s. 10(8)]

41.—(1) Where the value of movable goods (other than goods of a kind specified in paragraph 8 of Schedule 2 ) provided under an agreement for the supply of services exceeds two-thirds of the total consideration under the agreement for the provision of those goods and the supply of the services (other than transport services in relation to them)—

( a) the consideration shall be deemed to be referable solely to the supply of the goods, and

( b) tax shall be charged at the appropriate rate or rates specified in Chapter 1 of Part 6 on the basis of any apportionment of the total consideration made in accordance with subsection (2).

(2) Where goods of different kinds are provided under an agreement of the kind referred to in subsection (1), the amount of the consideration referable to the supply of goods of each kind shall be ascertained for the purposes of that subsection by apportioning the total consideration in proportion to the value of the goods of each kind provided.

(3) This section shall also apply to an agreement for the supply of immovable goods and, accordingly, the references in subsections (1) and (2) to an agreement for the supply of services shall be deemed to include a reference to such an agreement.

(4) This section does not apply in respect of a supply of services to which section 16(3) F57 [ or (5) ] applies.

Annotations:

Amendments:

F57

Inserted (1.05.2012) by Finance Act 2012 (9/2012), s. 86(1)(c), commenced as per s. 86(2).

42.

Taxable amount for certain supplies.

[VATA s. 10(4) to (4C) and (5)]

42.—(1)( a) Subject to paragraph (c), the amount on which tax is chargeable in relation to a supply of goods referred to in section 19(1)(e)(ii) , (f) or (g) or a supply of services by virtue of regulations made for the purposes of section 27(1)(a) or (b) shall be the cost (excluding tax) of the goods to the person supplying or acquiring the goods or the cost (excluding tax) of supplying the services, as the case may be.

( b) The amount on which tax is chargeable in relation to a supply of services by virtue of regulations made for the purposes of section 27(1)(c) shall be the open market price of the services supplied.

( c) Where the supply referred to in paragraph (a) is a supply of immovable goods (in this paragraph referred to as the “appropriation”), the cost to the person making the appropriation shall include an amount equal to the amount on which tax was chargeable on the supply of those goods to that person, being the last supply of those goods to that person which preceded the appropriation.

(2)( a) The amount on which tax is chargeable in relation to the supply of goods referred to in section 19(1)(h) shall be the cost of the goods to the person making the supply or, in the absence of such a cost, the cost price of similar goods in the State.

( b) Where an intra-Community acquisition occurs in the State following a supply of goods in another Member State which, if such supply were carried out in similar circumstances in the State would be a supply of goods in accordance with section 19(1)(h) , then the amount on which tax is chargeable in respect of that intra-Community acquisition shall be the cost to the person making the supply in that Member State or, in the absence of a cost to that person, the cost price of similar goods in that other Member State.

(3) The amount on which tax is chargeable in relation to services for which the recipient is, by virtue of F58 [ section 12 or 17(1) ] , liable for the tax chargeable, shall be the consideration for which the services were in fact supplied to him or her.

(4) In the case of a supply of goods of the kind referred to in section 19(1)(c) , where, as part of an agreement of the kind referred to in that section, the supplier of the goods is also supplying financial services of the kind specified in paragraph 6(1)(e) of Schedule 1 in respect of those goods, the amount on which tax is chargeable in respect of the supply of the goods in question shall be the greater of—

( a) the open market price of the goods,

( b) the amount of the total consideration as specified in section 37(1) which the person supplying the goods becomes entitled to receive in respect of or in relation to such supply.

(5) Where goods chargeable with a duty of excise (other than alcohol products within the meaning of section 92 ), are supplied while warehoused, and before payment of the duty, to an unregistered person, the amount on which tax is chargeable in respect of the supply shall be increased by an amount equal to the amount of duty that would be payable in relation to the goods if the duty had become due at the time of the supply.

Annotations:

Amendments:

F58

Substituted (1.01.2011) by European Union (Value-Added Tax) Regulations 2010 (S.I. No. 612 of 2010), reg. 3(d) and table, in effect as per reg. 1(2).

43.

Vouchers, etc.

[VATA s. 10(6) to (7A) and s. 10(10) (in part)]

43.—(1) In this section “redeemable value” means the amount stated on a coupon, stamp, telephone card, token or voucher or, where an amount is not so stated, the value expressed in terms of money for which a coupon, stamp, telephone card, token or voucher can be used as consideration (or part consideration) for a supply of goods or services.

(2) Subject to subsection (3), where a right to receive goods or services for the redeemable value of any coupon, stamp, telephone card, token or voucher is granted for a consideration, the consideration shall be disregarded for the purposes of this Act except to the extent (if any) that it exceeds that redeemable value.

(3) Notwithstanding subsection (2), where—

( a) a supplier—

(i) supplies a coupon, stamp, telephone card, token or voucher, which has a redeemable value, F59 [ to an accountable person ] who acquires it in the course or furtherance of business with a view to resale, and

(ii) promises to subsequently accept that coupon, stamp, telephone card, token or voucher at its redeemable value in full or part payment of the price of goods or services,

and

F59 [ ( b ) an accountable person who acquires that coupon, stamp, telephone card, token or voucher whether from the supplier referred to in paragraph (a) or from any other accountable person in the course or furtherance of business, supplies it for consideration in the course or furtherance of business, ]

then, in the case of each such supply, the consideration received shall not be disregarded for the purposes of this Act and when such coupon, stamp, telephone card, token or voucher is used in payment or part payment of the price of goods or services, its redeemable value shall be disregarded for the purposes of section 37(3) .

(4) Provision may be made by regulations for the purpose of determining the amount on which tax is chargeable in relation to one or more of the following:

( a) supplies of coupons, stamps, tokens or vouchers when supplied as things in action (not being coupons, stamps, tokens or vouchers specified in subsection (2));

( b) subject to subsection (3) or (5), supplies of goods or services wholly or partly in exchange for coupons, stamps, telephone cards, tokens or vouchers of a kind specified in subsection (2) or paragraph (a),

and such regulations may, in the case of supplies referred to in paragraph (a), provide that the amount on which tax is chargeable shall be nil.

(5)( a) Where a supplier sells a voucher to a buyer at a discount and promises to subsequently accept that voucher at its face value in full or part payment of the price of goods purchased by a customer who was not the buyer of the voucher, and who does not normally know the actual price at which the voucher was sold by the supplier, the consideration represented by the voucher shall, subject to regulations (if any), be the sum actually received by the supplier on the sale of the voucher.

( b) Paragraph (a) is for the purpose of giving further effect to Article 73 of the VAT Directive, and shall be construed accordingly.

Annotations:

Amendments:

F59

Substituted (27.03.2013) by Finance Act 2013 (8/2013), s. 69, commenced on enactment.

Editorial Notes:

E10

Amount on which tax is chargeable in relation to supplies of goods or services to which subs. (4)(a) and (b) applies prescribed (1.01.2011) by Value-Added Tax Regulations 2010 (S.I. No. 639 of 2010), reg. 11, in effect as per reg. 1(2).

F60 [ Vouchers Multi-purpose and single - purpose, etc.

43A

43A .(1) In this section

multi-purpose voucher means a voucher other than a single-purpose voucher;

single-purpose voucher means a voucher where the place of supply of the goods or the services to which the voucher relates, and the tax due on those goods or services, are known at the time of issue of the voucher;

voucher means an instrument, whether in an electronic or physical format, where there is an obligation to accept it as consideration or part consideration for a supply of goods or services and where the goods or services to be supplied or the identities of their potential suppliers are either indicated on the instrument itself or in related documentation, including the terms and conditions of use of such instruments.

(2)( a ) The actual handing over of goods or the actual provision of services in return for a multi-purpose voucher, accepted as consideration or part consideration by a supplier shall be a supply, but each preceding transfer of that multi-purpose voucher shall be disregarded for the purposes of this Act.

( b ) Where a multi-purpose voucher is issued or transferred by a taxable person, other than the taxable person carrying out the supply as set out in paragraph (a) , the supply of additional services, insofar as they can be identified, shall be subject to tax.

(3) The taxable amount of the supply of goods or services provided in respect of a multi-purpose voucher shall be deemed to be equal to the consideration paid for the voucher or, in the absence of information on that consideration, the monetary value indicated on or within the multi-purpose voucher or in the related documentation, less the amount of tax relating to the goods or services supplied.

(4)( a ) Each transfer of a single-purpose voucher made by a taxable person acting in his or her own name shall be regarded as a supply of goods or services to which the voucher relates and shall be subject to tax.

( b ) Where a transfer of a single-purpose voucher is made by a taxable person acting in the name of another person, that transfer shall be regarded as a supply of goods or services made by that other person in whose name the taxable person is acting.

( c ) Where the supplier of goods or services is not the taxable person who, acting in his or her own name, issued the single-purpose voucher, that supplier shall be deemed to have made that supply of the goods or services related to that voucher to that taxable person.

( d ) The actual handing over of the goods or the actual provision of the services in return for a single-purpose voucher accepted as consideration or part consideration by the supplier shall not be regarded as an independent transaction and shall not be subject to tax.

(5) Where a supplier sells a single-purpose voucher to a buyer at a discount and promises to subsequently accept that voucher at its face value in full or part payment of the price of the goods or services purchased by a customer who was not the buyer of the voucher, and who does not normally know the actual price at which the voucher was sold by the supplier, the consideration represented by the voucher shall, subject to regulations (if any), be the sum actually received by the supplier on the sale of the voucher.

(6) This section shall apply to a single-purpose voucher or a multi-purpose voucher issued on or after 1 January 2019. ]

Annotations:

Amendments:

F60

Inserted (1.01.2019) by European Union (Value-Added Tax) (Vouchers) Regulations 2018 (S.I. No. 582 of 2018), reg. 3, in effect as per reg. 2.

44.

Non-business use of immovable goods.

[VATA s. 10(4D)]

44.—(1) The amount on which tax is chargeable in relation to a supply of services referred to in section 27(2) in any taxable period shall be an amount equal to one sixth of one twentieth of the cost of the immovable goods used to provide those services, being—

( a) the amount on which tax was chargeable to the person making the supply in respect of that person’s acquisition or development of the immovable goods referred to in section 27(2) , and

( b) in the case where section 20(2)(c) applied to the acquisition of the immovable goods, the amount on which tax would have been chargeable but for the application of that section,

adjusted to correctly reflect the proportion of the use of the goods in that period.

(2) The Revenue Commissioners may make regulations specifying methods which may be used—

( a) to identify the proportion which correctly reflects the extent to which immovable goods are used for the purposes referred to in section 27(2) , and

( b) to calculate the relevant taxable amount or amounts.

Chapter 2

Adjustment and recovery of consideration

45.

Adjustment and recovery of consideration.

[VATA s. 35(1A) to (2)]

45.—(1) Where, after the making of an agreement for the supply of goods or services and before the date on which under section 74(1) or (2), as may be appropriate, any tax in respect of the transaction falls due, there is a change in the amount of tax chargeable on the supply in question, then, in the absence of agreement to the contrary, there shall be added to or deducted from the total amount of the consideration and any tax stated separately under the agreement an amount equal to the amount of the change in the tax chargeable.

(2) References in subsection (1) to a change in the amount of tax chargeable on the supply of goods or services include references to a change to or from a situation in which no tax is being charged on the supply.

(3) Subject to subsection (4), where, in relation to a supply of goods or services by an accountable person, the person issues an invoice in which the tax chargeable in respect of the transaction is stated separately, then, for the purpose of its recovery, the tax so stated shall be deemed to be part of the consideration for the transaction and shall be recoverable accordingly by the person.

(4) Where the invoice referred to in subsection (3) is issued pursuant to section 66(1) , subsection (3) shall not apply unless the invoice is in the form and contains the particulars specified by regulations.

PART 6

Rates and Exemption

Chapter 1

Rates

46.

Rates of tax.

[VATA s. 11(1), (1A) and (8)]

46.—(1) Tax shall be charged, in relation to the supply of taxable goods or services, the intra-Community acquisition of goods and the importation of goods, at whichever of the following rates is appropriate in any particular case:

( a) F61 [ 23 per cent ] of the amount on which tax is chargeable other than in relation to goods or services on which tax is chargeable at any of the rates specified in F62 [ paragraphs (b) , (c) , (ca) and (d) ] ;

( b) zero per cent of the amount on which tax is chargeable in relation to goods in the circumstances specified in paragraphs 1(1) to (3), 3(1) and (3) and 7(1) to (4) and (6) of Schedule 2 or of goods or services of a kind specified in the other paragraphs of that Schedule;

( c) F63 [ subject to paragraph (ca) , ] 13.5 per cent of the amount on which tax is chargeable in relation to goods or services of a kind specified in Schedule 3 ;

F63 [ ( ca ) F64 [ ] 9 per cent in relation to goods or services of a kind specified in F65 [ paragraphs 7(a) , 7A and 12 ] of Schedule 3 on which tax would, but for this paragraph, be chargeable in accordance with paragraph (c) ; ]

( d) 4.8 per cent of the amount on which tax is chargeable in relation to the supply of livestock F66 [ ].

(2) The rate at which tax is chargeable under section 3(a) , (c), (d) or (e) is the rate in force at the time when the tax becomes due as provided by section 74(1) or (2) or 75 (whichever is applicable).

(3) Goods or services which are specifically excluded from any paragraph of a Schedule shall, unless the contrary intention is expressed, be regarded as excluded from every other paragraph of that Schedule, and shall not be regarded as specified in that Schedule.

(4)( a) The Minister may by order vary Schedule 2 or 3 by adding to or deleting therefrom descriptions of goods or services of any kind or by varying any description of goods or services for the time being specified therein, but no order shall be made under this Chapter for the purpose of increasing any of the rates of tax or extending the classes of activities or goods in respect of which tax is for the time being chargeable.

( b) The Minister may by order amend or revoke an order under this subsection (including an order under this paragraph).

( c) An order under this subsection shall be laid before Dáil Éireann as soon as may be after it has been made and, if a resolution annulling the order is passed by Dáil Éireann within the next 21 days on which Dáil Éireann has sat after the order is laid before it, the order shall be annulled accordingly, but without prejudice to the validity of anything previously done thereunder.

Annotations:

Amendments:

F61

Substituted (1.01.2012) by Finance Act 2012 (9/2012), s. 87, commenced as per s. 87.

F62

Substituted (1.07.2011) by Finance (No. 2) Act 2011 (8/2011) s. 3(a), commenced as per s. 3.

F63

Inserted (1.07.2011) by Finance (No. 2) Act 2011 (8/2011) s. 3(b), (c), commenced as per s. 3.

F64

Deleted (1.01.2014) by Finance (No. 2) Act 2013 (41/2013), s. 58, commenced as per s. 58.

F65

Substituted (1.01.2019) by Finance Act 2018 (30/2018), s. 43(a), commenced as per s. 43.

F66

Deleted (1.01.2015) by Finance (No. 2) Act 2013 (41/2013), s. 66(1)(b)(ii), commenced as per s. 66(2) and S.I. No. 498 of 2014.

Editorial Notes:

E11

Previous affecting provision: subs. (1)(ca) amended (1.01.2015) by Finance (No. 2) Act 2013 (41/2013), s. 66(1)(b)(i), commenced as per s. 66(2) and S.I. No. 498 of 2014; substituted as per F-note above.

47.

Composite and multiple supplies.

[VATA s. 11(3)]

47.—(1) Subject to section 41

( a) in the case of a composite supply, the tax chargeable on the total consideration which the accountable person is entitled to receive for that composite supply shall be at the rate specified in section 46(1) which is appropriate to the principal supply, but if that principal supply is an exempted activity, tax shall not be chargeable in respect of that composite supply,

( b) in the case of a multiple supply—

(i) the tax chargeable on each individual supply in that multiple supply shall be at the rate specified in section 46(1) appropriate to each such individual supply, and

(ii) in order to ascertain the taxable amount referable to each individual supply for the purpose of applying the appropriate rate thereto, the total consideration which the accountable person is entitled to receive in respect of that multiple supply shall be apportioned between those individual supplies in a way that correctly reflects the ratio which the value of each such individual supply bears to the total consideration for that multiple supply.

(2) In the case where a person acquires a composite supply or a multiple supply by means of an intra-Community acquisition, this section shall apply to that acquisition.

(3) The Revenue Commissioners may make regulations as necessary specifying—

( a) the circumstances or conditions under which a supply may or may not be treated as an ancillary supply, a composite supply, an individual supply, a multiple supply or a principal supply,

( b) the methods of apportionment which may be applied for the purposes of subsections (1) and (2),

( c) a relatively small amount, or an element of a supply, which may be disregarded for the purposes of applying this section.

48.

Works of art, etc.

[VATA s. 11(1AA)]

48.—(1) Notwithstanding section 46(1) , tax shall be charged at the rate specified in F67 [ paragraph (c) or (ca) , as appropriate, of section 46(1) ] of the amount on which tax is chargeable in relation to—

( a) the importation into the State of goods specified in Schedule 5 ,

( b) the supply of a work of art of the kind specified in paragraph 1 of Schedule 5 , effected by its creator or the creator’s successors in title, or

( c) the supply of a work of art of the kind specified in paragraph 1 of Schedule 5 , effected on an occasional basis by an accountable person other than a taxable dealer where—

(i) that work of art has been imported by the accountable person,

(ii) that work of art has been supplied to the accountable person by its creator or the creator’s successors in title, or

(iii) the tax chargeable in relation to the purchase, intra-Community acquisition or importation of that work of art by the accountable person was wholly deductible under Chapter 1 of Part 8 .

(2) Notwithstanding section 46(1) , tax shall be charged at the rate specified in F67 [ paragraph (c) or (ca) , as appropriate, of section 46(1) ] of the amount on which tax is chargeable in relation to the intra-Community acquisition in the State by an accountable person of a work of art of the kind specified in paragraph 1 of Schedule 5 where the supply of that work of art to that accountable person which resulted in that intra-Community acquisition is a supply of the kind that would be charged at the rate specified in F67 [ paragraph (c) or (ca) , as appropriate, of section 46(1) ] in accordance with subsection (1)(b) or (c) if that supply had occurred within the State.

Annotations:

Amendments:

F67

Substituted (1.07.2011) by Finance (No. 2) Act 2011 (8/2011) s. 3(d), commenced as per s. 3.

49.

Contract work.

[VATA s. 11(1AB)]

49.—(1) Notwithstanding section 46(1) but subject to subsection (2), the rate at which tax is chargeable on a supply of contract work shall be the rate that would be chargeable if that supply of services were a supply of the goods being handed over by the contractor to the person to whom that supply is made.

(2) Subsection (1) shall not apply to a supply of contract work in the circumstances specified in F68 [ paragraph 3(4) of Schedule 2 ] .

Annotations:

Amendments:

F68

Substituted (6.02.2011) by Finance Act 2011 (6/2011), s. 61 and sch. 2 par. 9, commenced on enactment.

50.

Provisions in relation to certain supplies.

[VATA s. 11(4), (4A) and (6)]

50.—(1) Where—

( a) goods are supplied by a manufacturer to a person and materials have been supplied by or on behalf of that person for the manufacture of those goods, and

( b) the rate of tax chargeable in relation to the supply of the goods (in this subsection referred to as the “goods rate”) exceeds the rate of tax (in this subsection referred to as the “materials rate”) that would be chargeable in relation to a supply within the State of the materials,

then the manufacturer shall, in respect of the supply of such goods, be liable (in addition to any other liability imposed on the manufacturer by this Act) to pay tax on the value of the materials provided to the manufacturer at a rate equivalent to the difference between the goods rate and the materials rate.

(2) Where—

( a) goods of a kind specified in paragraph 8 of Schedule 2 are used by a person in the course of the supply by the person of taxable services, and

( b) the goods are provided by or on behalf of the person to whom the services are supplied,

the person who supplies the taxable services shall be liable in respect thereof (in addition to any other liability imposed on him or her under this Act) to pay tax on the value of the goods so used at the rate specified in F69 [ paragraph (c) or (ca) , as appropriate, of section 46(1) ] .

(3) Where immovable goods consisting of machinery or business installations are let separately from other immovable goods of which they form part, tax shall be chargeable in respect of the transaction at the rate which would be chargeable if it were a hiring of movable goods of the same kind.

Annotations:

Amendments:

F69

Substituted (1.07.2011) by Finance (No. 2) Act 2011 (8/2011) s. 3(d), commenced as per s. 3.

51.

Determinations on rates and exemptions.

[VATA s. 11(1B)]

51.—(1) On receipt of an application in writing from an accountable person, the Revenue Commissioners shall, in accordance with regulations and after such consultation (if any) as may seem to them to be necessary with such person or body of persons as in their opinion may be of assistance to them, make a determination concerning—

( a) whether an activity of any particular kind carried on by the person is an exempted activity, or

( b) the rate at which tax is chargeable in relation to the supply or intra-Community acquisition by the person of goods of any kind, the supply or intra-Community acquisition of goods in any particular circumstances or the supply by the person of services of any kind.

(2) The Revenue Commissioners may, whenever they consider it expedient to do so, in accordance with regulations and after such consultation (if any) as may seem to them to be necessary with such person or body of persons as in their opinion may be of assistance to them, make a determination concerning—

( a) whether an activity of any particular kind is an exempted activity, or

( b) the rate at which tax is chargeable in relation to the supply or intra-Community acquisition of goods of any kind, the supply or intra-Community acquisition of goods in any particular circumstances or the supply of services of any kind.

(3) For the purposes of this Act, a determination under this section shall have effect—

( a) in relation to an accountable person who makes an application for the determination, as on and from the date which shall be specified for the purpose in the determination communicated to the accountable person in accordance with subsection (5)(a), and

( b) in relation to any other person, as on and from the date which shall be specified for the purpose in the determination as published in Iris Oifigiúil.

(4) The Revenue Commissioners shall not make a determination under this section concerning any matter which has been determined on appeal under this Act or which is for the time being governed by an order under section 46(4) or 52(2) , and shall not be required to make such a determination in relation to any of the matters referred to in an application under subsection (1) if—

( a) a previous determination has been published in regard to the matter, or

( b) in their opinion the subject matter of the application is sufficiently free from doubt as not to warrant the making and publication of a determination.

(5)( a) A determination under subsection (1) shall, as soon as may be after its making, be communicated to the person who made the application by the service on the person by the Revenue Commissioners of a notice containing particulars of the determination.

( b) A determination under subsection (1) may, and a determination under subsection (2) shall, be published in Iris Oifigiúil and in at least one daily newspaper published in the State.

F70 [ (6) A person aggrieved by a determination under subsection (1) made pursuant to an application by him or her may appeal the determination to the Appeal Commissioners, in accordance with section 949I of the Taxes Consolidation Act 1997 , within the period of 30 days after the date of the notice of that determination in accordance with subsection (5)(a) . ]

(7) Any accountable person who, in the course of business, supplies goods or makes an intra-Community acquisition of goods, or supplies services of a kind or in circumstances specified in a determination F71 [ under subsection (1) or (2) , and who is aggrieved by that determination, may appeal that determination to the Appeal Commissioners, in accordance with section 949I of the Taxes Consolidation Act 1997 , within the period of 30 days after the date of the publication of that determination in Iris Oifigi ú il in accordance with subsection (5)(b) . ]

Annotations:

Amendments:

F70

Substituted (21.03.2016) by Finance (Tax Appeals) Act 2015 (59/2015), s. 42 and sch. 2 part 4 para. 4(b)(i), S.I. No. 110 of 2016.

F71

Substituted (21.03.2016) by Finance (Tax Appeals) Act 2015 (59/2015), s. 42 and sch. 2 part 4 para. 4(b)(ii), S.I. No. 110 of 2016.

Editorial Notes:

E12

Form of determination under section prescribed (1.01.2011) by Value-Added Tax Regulations 2010 (S.I. No. 639 of 2010), reg. 13, in effect as per reg. 1(2).

Chapter 2

Exemptions

52.

General rule on exempted activity.

[VATA s. 6]

52.—(1) Tax shall not be chargeable in respect of any exempted activity.

(2) F72 [ ( a ) The Minister may by order amend Schedule 1 . ]

( b) The Minister may by order amend or revoke an order under this subsection, including an order under this paragraph.

( c) An order under this subsection shall be laid before Dáil Éireann as soon as may be after it is made and, if a resolution annulling the order is passed by Dáil Éireann within the next 21 days on which Dáil Éireann has sat after the order is laid before it, the order shall be annulled accordingly, but without prejudice to the validity of anything previously done thereunder.

Annotations:

Amendments:

F72

Substituted (31.03.2012) by Finance Act 2012 (9/2012), s. 85(b), commenced on enactment.

PART 7

Provisions Relating to Imports, Exports, etc.

53.

Imports — general provisions.

[VATA s. 15(3), (6) and (8) and FA 2010 s. 125]

53.—(1) The value of imported goods for the purposes of this section and section 54 shall be their value determined in accordance with the acts for the time being in force adopted by the institutions of the Community relating to the valuation of goods for customs purposes, modified by the substitution of references to the territory of the State for references to the customs territory of the Community, together with any taxes, duties, expenses resulting from the transport of the goods to another place of destination within the Community (if that destination is known at the time of the importation) and other charges levied either outside or, by reason of importation, within the State (other than value-added tax) on the goods and not included in the determination.

(2) With effect from 1 January 2011, where the importation of goods is followed by a supply or transfer of those goods to a person registered for value-added tax in another Member State, paragraph 2(1) of Schedule 2 applies only if the person who imports those goods (in this subsection referred to as the “importer”)—

( a) at the time of importation declares the following information:

(i) the importer’s registration number;

(ii) the identification number (referred to in the definition in section 2(1) of “person registered for value-added tax”) of the person to whom the goods are supplied or transferred;

and

( b) provides evidence, if so requested by the Revenue Commissioners, that the imported goods are to be transported or dispatched from the State to another Member State.

(3) Subject to subsection (1) and section 54 , the F73 [ Customs Acts ] shall apply to tax referred to in this section or section 54 or 120(7)(b) or (c) as if it were a duty of customs, with such exceptions and modifications (if any) as may be specified in regulations.

Annotations:

Amendments:

F73

Substituted (25.12.2017) by Finance Act 2017 (41/2017), s. 58(c), commenced on enactment.

54.

Remission or repayment of tax on certain imported goods.

[VATA s. 15(5) and (5A)]

54.—(1) The Revenue Commissioners may, in accordance with regulations, remit or repay, if they think fit, the whole or part of the tax chargeable—

( a) on the importation of any goods which are shown to their satisfaction to have been previously exported,

( b) on the importation of any goods if they are satisfied that the goods have been or are to be re-exported,

( c) on the importation of any goods from the customs-free airport by an unregistered person who shows to the satisfaction of the Commissioners that he or she has already borne tax on the goods.

(2) Subject to subsection (3), the Revenue Commissioners shall, in accordance with regulations, repay the tax chargeable on the importation of goods where the goods have been dispatched or transported—

( a) to another Member State from outside the Community, and

( b) to a person (other than an individual) who is not registered for value-added tax in that other Member State.

(3) Subsection (2) shall apply only where it is shown to the satisfaction of the Revenue Commissioners that the goods in question have been subject to value-added tax referred to in the VAT Directive in that other Member State.

55.

Goods in transit — miscellaneous provisions.

[VATA s. 15B(1) to (5A) and (7)]

55.—(1)( a) In this section—

“date of accession” means—

(i) 1 January 1995 in respect of the Republic of Austria, the Republic of Finland (excluding the Åland Islands) and the Kingdom of Sweden,

(ii) 1 May 2004 in respect of the Czech Republic, the Republic of Estonia, the Republic of Cyprus, the Republic of Latvia, the Republic of Lithuania, the Republic of Hungary, the Republic of Malta, the Republic of Poland, the Republic of Slovenia and the Slovak Republic,

(iii) 1 January 2007 in respect of the Republic of Bulgaria and F74 [ Romania, ]

F75 [ (iv) 1 July 2013 in respect of the Republic of Croatia; ]

“enlarged Community” means the Community after the accession of the new Member States;

“new Member State” means any state referred to in the definition of “date of accession” with effect from the relevant date.

( b) A word or expression that is used in this section and is also used in Council Directive No. 94/76/EC of 22 December 1994 3, has, unless the contrary intention appears, the meaning in this section that it has in that Council Directive.

(2) Where—

( a) goods from a new Member State were imported into the State before the date of accession,

( b) the tax referred to in section 3(b) was not chargeable because the goods were, at the time of such importation, placed—

(i) under an arrangement for temporary importation with total exemption from customs duty, or

(ii) under one of the arrangements referred to in Article 156(1) of the VAT Directive,

and

( c) the goods are still subject to such an arrangement on the date of accession,

then the provisions in force at the time the goods were placed under that arrangement shall continue to apply until the goods leave that arrangement on or after the date of accession.

(3)( a) In this subsection “common transit procedure” means the procedure approved by the Council of the European Communities by Council Decision No. 87/415/EEC of 15 June 1987 4, approving the Convention done at Interlaken on the 20th day of May, 1987, between the European Community, the Republic of Austria, the Republic of Finland, the Republic of Iceland, the Kingdom of Norway, the Kingdom of Sweden, and the Swiss Confederation on a common transit procedure, the text of which is attached to that Council Decision.

( b) Where—

(i) goods were placed under the common transit procedure or under another customs transit procedure in a new Member State before the date of accession, and

(ii) those goods have not left the procedure concerned before the date of accession,

then the provisions in force at the time the goods were placed under that procedure shall continue to apply until the goods leave that procedure on or after the date of accession.

(4) Where goods were in free circulation in a new Member State prior to entry into the State, an importation into the State shall be deemed to occur in the following cases:

( a) the removal (including irregular removal) within the State of the goods referred to in subsection (2) from the arrangement referred to in subsection (2)(b)(i);

( b) the removal (including irregular removal) within the State of the goods referred to in subsection (2) from the arrangement referred to in subsection (2)(b)(ii);

( c) the termination within the State of any of the procedures referred to in subsection (3).

(5) An importation into the State shall be deemed to occur when goods, which were supplied within a new Member State before the date of accession, and which were not chargeable to a value-added tax in that new Member State, because of their exportation from that new Member State, are used in the State on or after the date of accession, and have not been imported before that date.

(6) The tax referred to in section 3(b) shall not be chargeable where—

( a) the imported goods referred to in subsections (4) and (5) are dispatched or transported outside the enlarged Community,

( b) the imported goods referred to in subsection (4)(a) are other than means of transport and are being returned to the new Member State from which they were exported and to the person who exported them, or

( c) the imported goods referred to in subsection (4)(a) are means of transport which were acquired in or imported into a new Member State before the date of accession in accordance with the general conditions of taxation in force on the domestic market of that new Member State and which have not been subject by reason of their exportation to any exemption from or refund of a value-added tax in that new Member State.

(7) Subsection (6)(c) shall be deemed to be complied with where it is shown to the satisfaction of the Revenue Commissioners that—

( a) the date of the first use of the means of transport was before 1 January 1987 in the case of means of transport entering the State from the Republic of Austria, the Republic of Finland (excluding the Åland Islands) or the Kingdom of Sweden,

( b) the date of the first use of the means of transport was before 1 May 1996 in the case of means of transport entering the State from the Czech Republic, the Republic of Estonia, the Republic of Cyprus, the Republic of Latvia, the Republic of Lithuania, the Republic of Hungary, the Republic of Malta, the Republic of Poland, the Republic of Slovenia or the Slovak Republic,

( c) the date of the first use of the means of transport was before 1 January 1999 in the case of means of transport entering the State from the Republic of Bulgaria or F76 [ Romania, ]

F75 [ (ca) the date of the first use of the means of transport was before 1 July 2005 in the case of means of transport entering the State from the Republic of Croatia, or ]

( d) the tax due by reason of the importation does not exceed €130.

Annotations:

Amendments:

F74

Substituted (1.07.2013) by European Union (Value-Added Tax) Regulations 2013 (S.I. No. 252 of 2013), regs. 3(a)(i), in effect as per reg. 2.

F75

Inserted (1.07.2013) by European Union (Value-Added Tax) Regulations 2013 (S.I. No. 252 of 2013), regs. 3(a)(ii) and (b)(ii), in effect as per reg. 2.

F76

Substituted (1.07.2013) by European Union (Value-Added Tax) Regulations 2013 (S.I. No. 252 of 2013), regs. 3(b)(i), in effect as per reg. 2.

3 OJ No. L365, 31.12.1994, p.53

4 OJ No. L 226, 13.8.87, p. 1

56.

Zero-rating scheme for qualifying businesses.

[VATA s. 13A]

56.—(1) For the purposes of this section and paragraph 7(7) of Schedule 2

“authorised person” means a qualifying person who has been authorised in accordance with subsection (3);

“qualifying person” means an accountable person whose turnover from—

( a) supplies of goods made in accordance with paragraph 1(1) or 3(1) or (3) of Schedule 2 ,

( b) supplies of contract work where the place of supply is deemed to be F77 [ a Member State other than ] the State, and

( c) supplies of contract work made in accordance with paragraph 3(4) of Schedule 2 ,

amounts to, or is likely to amount to, 75 per cent of the person’s total turnover from supplying goods and services, except that turnover from goods supplied to an accountable person that are subsequently leased back from that person are excluded from the total turnover for the purpose of determining whether the accountable person is a qualifying person;

“qualifying goods” means all taxable goods excluding motor vehicles within the meaning of section 60(1) and petrol;

“qualifying services” means all taxable services excluding the provision of food or drink, accommodation, other personal services, entertainment services or the hire of motor vehicles within the meaning of section 60(1) .

(2) A person who wishes to become an authorised person shall—

( a) complete such application form as may be provided by the Revenue Commissioners for that purpose,

( b) certify the particulars shown on such form to be correct, and

( c) submit to the Revenue Commissioners the completed and certified application form, together with such further information in support of the application as may be requested by them.

(3)( a) Where a person has furnished the particulars required under subsection (2), the Revenue Commissioners shall, where they are satisfied that he or she is a qualifying person, issue to that person an authorisation in writing certifying him or her to be an authorised person.

( b) An authorisation issued in accordance with paragraph (a) shall be valid for such period as may be determined by the Revenue Commissioners.

( c) Where a person who has been authorised in accordance with paragraph (a) ceases to be a qualifying person, he or she shall, by notice in writing, advise the Revenue Commissioners accordingly not later than the end of the taxable period during which he or she ceased to be a qualifying person.

( d) The Revenue Commissioners shall, by notice in writing, cancel an authorisation issued to a person in accordance with paragraph (a) where they are satisfied that he or she is no longer a qualifying person and that cancellation shall have effect from the date specified in the notice.

(4) An authorised person shall furnish a copy of the authorisation referred to in subsection (3) to each accountable person in the State who supplies taxable goods or taxable services to the authorised person.

(5) An accountable person who supplies goods or services in circumstances where paragraph 7(7) of Schedule 2 applies shall, in addition to the details to be included on each invoice, credit note or other document required to be issued in accordance with Chapter 2 of Part 9 , include on that invoice, credit note or other document a reference to the number of the authorisation issued to the authorised person in accordance with subsection (3).

(6) In relation to each consignment of goods to be imported by an authorised person at the rate specified in section 46(1)(b) by virtue of paragraph 7(7) of Schedule 2 the following conditions shall be complied with:

( a) a copy of the authorisation referred to in subsection (3) shall be produced with the relevant customs entry; and

( b) the relevant customs entry shall incorporate—

(i) a declaration by the authorised person, or by his or her representative duly authorised in writing for that purpose, that he or she is an authorised person in accordance with this section for the purposes of paragraph 7(7) of Schedule 2 , and

(ii) a claim for importation at the rate specified in section 46(1)(b) .

(7) For the purposes of section 93(1)(c)(ii) , the tax charged at the rate specified in section 46(1)(b) by virtue of paragraph 7(7) of Schedule 2 shall be deemed to be tax which is deductible under Chapter 1 of Part 8 .

(8) Where an authorised person is in receipt of a service in respect of which, had paragraph 7(7) of Schedule 2 not applied, tax would have been chargeable at a rate other than the rate specified in section 46(1)(b) and all or part of such tax would not have been deductible by the authorised person under Chapter 1 of Part 8 , then that authorised person shall, in relation to such service, be liable to pay tax as if he or she had supplied the service for consideration in the course or furtherance of his or her business to a person who is not an authorised person.

(9) For the purposes of this section, and subject to the direction and control of the Revenue Commissioners, any power, function or duty conferred or imposed on them may be exercised or performed on their behalf by an officer of the Revenue Commissioners.

Annotations:

Amendments:

F77

Inserted (6.02.2011) by Finance Act 2011 (6/2011), s. 61 and sch. 2 par. 10, commenced on enactment.

57.

Remission of tax on goods exported, etc.

[VATA s. 13(1)( a) and (2)( a)]

57.—(1) Regulations may make provision for remitting or repaying, subject to such conditions (if any) as may be specified in the regulations or as the Revenue Commissioners may impose, the tax chargeable in respect of the supply of goods, or of such goods as may be specified in the regulations, in cases where the Commissioners are satisfied that the goods have been or are to be exported.

(2) Regulations may make provision for remitting or repaying, subject to such conditions (if any) as may be specified in the regulations or as the Revenue Commissioners may impose, the tax chargeable in respect of the supply of services directly linked to the export of goods or the transit of goods from a place outside the State to another place outside the State.

58.

Retail export scheme.

[VATA s. 13(1A) to (1D), (3B) and (3C)]

58.—(1) In this section—

“traveller” means a person whose domicile or habitual residence is not situated within the Community and includes a person who is normally resident in the Community but who, at the time of the supply of the goods, intends to take up residence outside the Community in the near future and for a period of at least 12 consecutive months;

“traveller’s qualifying goods” means goods (other than goods transported by the traveller for the equipping, fuelling and provisioning of pleasure boats, private aircraft or other means of transport for private use) which are supplied within the State to a traveller and which are exported by or on behalf of that traveller by the last day of the 3rd month following the month in which the supply takes place;

“VAT refunding agent” means a person who supplies services which consist of the procurement of a zero-rating (within the meaning of subsection (2)) or repayment of tax in relation to supplies of a traveller’s qualifying goods.

(2) The Revenue Commissioners shall, subject to and in accordance with regulations (if any), allow the application of section 46(1)(b) (in this section referred to as “zero-rating”) to—

( a) the supply of a traveller’s qualifying goods, and

( b) the supply of services by a VAT refunding agent consisting of the service of repaying the tax claimed by a traveller in relation to the supply of a traveller’s qualifying goods or the procurement of the zero-rating of the supply of a traveller’s qualifying goods,

where they are satisfied that the supplier of the goods or services, as the case may be—

(i) has at the time of the supply of the goods taken all reasonable steps to confirm that the purchaser is a traveller as defined in this section,

(ii) has proof that the goods were exported by or on behalf of the traveller by the last day of the 3rd month following the month in which the supply takes place,

(iii) has proof that, where an amount of tax has been charged to the traveller in respect of a supply of goods covered by paragraph (ii), that the amount to be repaid to the traveller has been repaid to that traveller no later than the 25th working day following receipt by the supplier of the traveller’s claim to repayment,

(iv) notifies the traveller in writing of any amount (including the mark-up) charged by the supplier for procuring the repayment of the amount claimed or arranging for the zero-rating of the supply and where an amount so notified is expressed in terms of a percentage or a fraction, such percentage or fraction shall relate to the tax remitted or repayable under this subsection,

(v) uses, as the exchange rate in respect of moneys being repaid to a traveller in a currency other than the currency of the State—

(I) unless subparagraph (II) applies, the latest selling rate recorded by the Central Bank of Ireland for the currency in question at the time of the repayment,

(II) if there is an agreement with the Revenue Commissioners for a method to be used in determining the exchange rate, the exchange rate obtained using that method,

and

(vi) has made known to the traveller such details concerning the transaction as may be specified in regulations.

(3) Regulations may make provision for the authorisation, subject to certain conditions, of accountable persons or a class of accountable persons for the purposes of zero-rating of the supply of a traveller’s qualifying goods or to operate as a VAT refunding agent in the handling of a repayment of tax on the supply of a traveller’s qualifying goods and such regulations may provide for the cancellation of such authorisation and matters consequential to such cancellation.

(4) A VAT refunding agent acting as such may, in accordance with regulations, treat the tax charged to the traveller on the supply of that traveller’s qualifying goods as tax that is deductible by the agent in accordance with section 59(2) provided that that agent fulfils the conditions set out in subsection (2) in respect of that supply.

(5) Where, in relation to a supply of goods, any of the conditions of paragraphs (i) to (vi) of subsection (2) are not complied with or are not complied with within the time limits specified in those paragraphs, where applicable, then—

( a) that supply is not a supply of traveller’s qualifying goods, and

( b) zero-rating is not applicable to the supply of services by a VAT refunding agent (if any) in respect of those goods.

(6) For the purposes of this section, and subject to the direction and control of the Revenue Commissioners, any power, function or duty conferred or imposed on them may be exercised or performed on their behalf by an officer of the Revenue Commissioners.

Annotations:

Editorial Notes:

E13

Conditions regarding the application of the rate of zero per cent to a supply of goods or services specified in subs. (2) imposed (1.01.2011) by Value-Added Tax Regulations 2010 (S.I. No. 639 of 2010), reg. 15, in effect as per reg. 1(2).

PART 8

Deductions

Chapter 1

General provisions

59.

Deduction for tax borne or paid.

[VATA s. 12(1), (1A) and (2)]

59.—(1) In this subsection and subsection (2)

“qualifying activities” means—

( a) transport outside the State of passengers and their accompanying baggage,

( b) supplies of goods which, by virtue of section 30 , are deemed to have taken place in the territory of another Member State but only if the supplier of those goods is registered for value-added tax in that other Member State,

( cF78 [ ]

( d) services specified in F79 [ paragraph 6(1) , 7(1) ] or 8 of Schedule 1 supplied—

(i) outside the Community, or

(ii) directly in connection with the export of goods to a place outside the Community,

( e) services consisting of the issue of new stocks, new shares, new debentures or other new securities by the accountable person in so far as such issue is made to raise capital for the purposes of the accountable person’s taxable supplies, and

( f) supplies of goods or services outside the State which would be taxable supplies if made in the State;

“qualifying vehicle” means a motor vehicle which, for the purposes of vehicle registration tax, is first registered, in accordance with section 131 of the Finance Act 1992, on or after 1 January 2009 and has, for the purposes of that registration, a level of CO2 emissions of less than 156g/km.

(2) Subject to subsection (3), in computing the amount of tax payable by an accountable person in respect of a taxable period, that person may, in so far as the goods and services are used by him or her for the purposes of his or her taxable supplies or of any of the qualifying activities, deduct—

( a) the tax charged to him or her during the period by other accountable persons by means of invoices, prepared in the manner prescribed by regulations, in respect of supplies of goods or services to him or her,

( b) in respect of goods imported by him or her in the period, the tax paid by him or her or deferred as established from the relevant customs documents kept by him or her in accordance with section 84(3) ,

( c) subject to such conditions (if any) as may be specified in regulations, the tax chargeable during the period, being tax for which he or she is liable in respect of intra-Community acquisitions of goods,

( d) subject to section 61 and regulations (if any), 20 per cent of the tax charged to the accountable person F80 [ by means of invoices or other documents prepared in the manner prescribed by regulations or by relevant customs documents, ] in respect of the purchase, hiring, intra-Community acquisition or importation of a qualifying vehicle, where that vehicle is used primarily for business purposes, being at least 60 per cent of the use to which that vehicle is put, and where the accountable person subsequently disposes of that vehicle the tax deducted by that person in accordance with this subsection shall be treated as if it were not deductible by that person for the purposes of paragraph 12(c) of Schedule 1 ,

( e) the tax chargeable during the period, being tax for which the accountable person is liable by virtue of section 10(1) in respect of the supply to such person of gas through the natural gas distribution network, F81 [ or of heat or cooling energy through heating or cooling networks, ] or of electricity, but only where the accountable person would be entitled to a deduction of that tax elsewhere under this subsection if that tax had been charged to such person by another accountable person,

( f) the tax chargeable during the period, being tax for which the accountable person is liable by virtue of section 10(2) in respect of goods which are installed or assembled but only where the accountable person would be entitled to a deduction of that tax elsewhere under this subsection if that tax had been charged to such person by another accountable person,

( g) the tax chargeable during the period, being tax for which he or she is liable by virtue of F82 [ section 12 or 17(1) ] in respect of services received by him or her,

( h) the tax chargeable during the period, being tax for which the recipient (within the meaning of section 16(2) ) is liable by virtue of section 16(2) in respect of greenhouse gas emission allowances (within the meaning of section 16(2) ) received by that recipient, but only where the recipient would be entitled to a deduction of that tax elsewhere under this subsection if that tax had been charged to such recipient by an accountable person,

( i) the tax chargeable during the period, being tax for which the principal is liable by virtue of section 16(3) in respect of construction operations services received by that principal but only where that principal would be entitled to a deduction of that tax elsewhere under this subsection if that tax had been charged to such principal by another accountable person,

F83 [ ( ia ) the tax chargeable during the period, being tax for which the recipient (within the meaning of section 16(4)(b) ) is liable by virtue of section 16(4)(b) in respect of scrap metal (within the meaning of section 16(4)(a) ) received by that recipient, but only where the recipient would be entitled to a deduction of that tax elsewhere under this subsection if that tax had been charged to such recipient by an accountable person, ]

F84 [ ( ib ) the tax chargeable during the period, being tax for which the recipient (within the meaning of section 16(5)(b) ) is liable by virtue of section 16(5)(b) in respect of supplies of construction work received by that recipient, but only where that recipient would be entitled to a deduction of that tax elsewhere under this subsection if that tax had been charged to such recipient by an accountable person, ]

F85 [ ( ic ) the tax chargeable during the period, being tax for which the recipient (within the meaning of section 16(6)(b) ) is liable by virtue of section 16(6) (b) in respect of supplies of gas or of electricity received by that recipient, but only where that recipient would be entitled to a deduction of that tax elsewhere under this subsection if that tax had been charged to such a recipient by an accountable person,

( id ) the tax chargeable during the period, being tax for which the recipient (within the meaning of section 16(7)(b) ) is liable by virtue of section 16(7)(b) in respect of a gas or an electricity certificate received by that recipient, but only where that recipient would be entitled to a deduction of that tax elsewhere under this subsection if that tax had been charged to such a recipient by an accountable person, ]

F79 [ ( j ) the tax chargeable during the period, being tax for which the accountable person is liable by virtue of section 16(1) , 94(6)(a) or (7) or 95(8)(c) to (e) , in respect of a supply to that person of immovable goods, ]

( k) the tax chargeable during the period in respect of goods (other than supplies of goods referred to in section 30 ) treated as supplied by him or her in accordance with section 19(1)(f) ,

( l) subject to and in accordance with regulations, in respect of goods supplied under section 19(1)(h) an amount equal to any residual tax included in the consideration for the supply,

( mF86 [ ]

( n) the tax chargeable during the period in respect of services treated as supplied by him or her for consideration in the course or furtherance of his or her business in accordance with section 27(1)(c) ,

( o) a flat-rate addition, which shall be deemed to be tax, charged to him or her during the period by means of invoices prepared in the manner prescribed by regulations and issued to him or her in accordance with section 86(1) ,

( p) the tax chargeable during the period, being tax for which he or she is liable by virtue of section 90(5)(a) in respect of investment gold (within the meaning of section 90 ) received by him or her, and

( q) subject to such conditions (if any) as may be specified in regulations, in respect of goods referred to in section 92 , the tax due in the period in accordance with that section.

F87 [ (2A) In computing the amount of tax payable by an accountable person in respect of a taxable period, that person may deduct the tax charged to him or her during the period by other accountable persons in respect of services directly related to the transfer of ownership of goods that would, but for the operation of section 20(2)(c) , be subject to tax. ]

(3) Subsection (2) shall not apply to—

( a) an accountable person referred to in section 9(4) or 12(3) , or

( b) an accountable person referred to in section 9(6) or 12(5) unless the tax relates to racehorse training services supplied by him or her.

(4)( a) A person who, by election or in accordance with section 5(2) is deemed to become an accountable person, shall, in accordance with regulations, be entitled, in computing the amount of tax payable by him or her in respect of the first taxable period for which he or she is so deemed to be an accountable person, to treat as tax deductible under subsection (2) such part of the value of the stock-in-trade held by him or her immediately before the commencement of that taxable period as could reasonably be regarded as the amount which he or she would be entitled to claim under subsection (2) if that person had been an accountable person at the time of the delivery to him or her of such stock-in-trade.

( b) No claim shall lie under this subsection for a deduction for the tax relating to any stock-in-trade if, and to the extent that, a deduction under subsection (2) could be claimed apart from this subsection.

(5) Where, in relation to any taxable period, the total amount deductible under this Chapter exceeds the amount which, but for this Chapter, would be payable in respect of such period, the excess shall be refunded to the accountable person in accordance with section 99(1) , but subject to section 100 .

Annotations:

Amendments:

F78

Deleted (31.03.2012) by Finance Act 2012 (9/2012), s. 138 and sch. 6 par. 3(c)(i), commenced as per par. 4(b).

F79

Substituted (27.03.2013) by Finance Act 2013 (8/2013), s. 70, commenced on enactment.

F80

Inserted (6.02.2011) by Finance Act 2011 (6/2011), s. 81 and sch. 3 par. 3(b), commenced as per par. 10(c).

F81

Inserted (31.03.2012) by Finance Act 2012 (9/2012), s. 138 and sch. 6 par. 3(c)(ii), commenced as per par. 4(b).

F82

Substituted (1.01.2011) by European Union (Value-Added Tax) Regulations 2010 (S.I. No. 612 of 2010), reg. 3(d) and table, in effect as per reg. 1(2).

F83

Inserted (1.05.2011) by Finance Act 2011 (6/2011), s. 59(1)(b), commenced as per s. 59(2).

F84

Inserted (1.05.2012) by Finance Act 2012 (9/2012), s. 86(1)(d), commenced as per s. 86(2).

F85

Inserted (1.01.2016) by Finance Act 2015 (52/2015), s. 52(1)(b), commenced as per s. 52(2).

F86

Deleted (18.12.2013) by Finance (No. 2) Act 2013 (41/2013), s. 59(a), commenced on enactment.

F87

Inserted (18.12.2013) by Finance (No. 2) Act 2013 (41/2013), s. 59(b), commenced on enactment.

Editorial Notes:

E14

Method of calculating amount of deduction under subs. (2) in respect of acquisition of dual-use inputs prescribed (1.01.2011) by Value-Added Tax Regulations 2010 (S.I. No. 639 of 2010), reg. 17, in effect as per reg. 1(2).

E15

Method of calculating amount of deduction under subs. (2) in respect of stock-in-trade held at commencement of taxability, and records which the accountable person is required to retain prescribed (1.01.2011) by Value-Added Tax Regulations 2010 (S.I. No. 639 of 2010), reg. 16, in effect as per reg. 1(2); as amended (22.11.2012) by Value-Added Tax (Amendment) Regulations 2012 (S.I. No. 458 of 2012), reg. 2(a).

60.

General limits on deductibility.

[VATA s. 12(3) and s. 12(3A) (in part)]

60.—(1) In this subsection and subsection (2)

“delegate” means a taxable person or a taxable person’s employee or agent who attends a qualifying conference in the course or furtherance of the taxable person’s business;

“motor vehicles” means motor vehicles designed and constructed for the conveyance of persons by road and sports motor vehicles, estate cars, station wagons, motor cycles, motor scooters, mopeds and auto cycles, whether or not so designed and constructed, excluding vehicles designed and constructed for the carriage of more than 16 persons (inclusive of the driver), invalid carriages and other vehicles of a type designed for use by invalids or infirm persons;

“qualifying accommodation” means the supply to a delegate of a service consisting of the letting of immovable goods or accommodation covered by paragraph 11 of Schedule 3 , for a maximum period starting from the night prior to the date on which the qualifying conference commences and ending on the date on which the conference concludes;

“qualifying conference” means a conference or meeting in the course or furtherance of business organised to cater for 50 or more delegates, which takes place at a venue designed and constructed for the purposes of hosting 50 or more delegates and in respect of which the person responsible for organising the conference issues in writing the details of the conference to each taxable person who attends or sends a delegate, and such details shall include—

( a) the location and dates of the conference,

( b) the nature of the business being conducted,

( c) the number of delegates for whom the conference is organised, and

( d) the name, business address and value-added tax registration number of the person responsible for organising the conference.

(2)( a) Notwithstanding anything in this Chapter, a deduction of tax under this Chapter shall not be made if, and to the extent that, the tax relates to—

(i) expenditure incurred by the accountable person on food or drink, or accommodation (other than qualifying accommodation in connection with attendance at a qualifying conference), or other personal services, for the accountable person, the accountable person’s agents or employees, except to the extent (if any) that such expenditure is incurred in relation to a supply of services in respect of which that accountable person is accountable for tax,

(ii) expenditure incurred by the accountable person on food or drink, or accommodation or other entertainment services, where such expenditure forms all or part of the cost of providing an advertising service in respect of which tax is due and payable by the accountable person,

F88 [ (iia) expenditure incurred by the accountable person on the acquisition or development, on or after 1 January 2011, of immovable goods forming part of the assets of a business where such goods are used or to be used for any purpose other than those of the accountable person s business, ]

(iii) entertainment expenses incurred by the accountable person, his or her agents or his or her employees,

(iv) subject to section 59(2)(d) , the purchase, hiring, intra-Community acquisition or importation of motor vehicles otherwise than as stock-in-trade or for the purpose of the supply thereof by a person supplying financial services of the kind specified in paragraph 6(1)(e) of Schedule 1 in respect of those motor vehicles as part of an agreement of the kind referred to in section 19(1)(c) or for the purposes of a business which consists in whole or part of the hiring of motor vehicles or for use, in a driving school business, for giving driving instruction,

(v) the purchase, intra-Community acquisition or importation of petrol otherwise than as stock-in-trade, or

(vi) the procurement of a supply of contract work where such supply consists of the handing over of goods to which this paragraph applies.

( b)(i) In subparagraph (i) of paragraph (a), reference to the provision of accommodation includes expenditure by the accountable person on a building, including the fitting out of such building, to provide such accommodation.

(ii) In subparagraph (iii) of paragraph (a), entertainment expenses includes expenditure on a building or facility, including the fitting out of such building or facility, to provide such entertainment.

(3) Notwithstanding anything in this Chapter, where section 87(3) or (8) or 89(3) has been applied to a supply of goods to an accountable person, that accountable person shall not deduct, in accordance with section 59(2) , any tax in relation to the supply to him or her.

Annotations:

Amendments:

F88

Inserted (1.01.2011) by European Union (Value-Added Tax) Regulations 2010 (S.I. No. 612 of 2010), reg. 4(e), in effect as per reg. 1(2).

61.

Apportionment for dual-use inputs.

[VATA s. 12(4)]

61.—(1) In this section—

“deductible supplies or activities” means the supply of taxable goods or taxable services, or the carrying out of qualifying activities within the meaning of section 59(1) ;

“dual-use inputs” means movable goods or services (other than goods or services on the purchase or acquisition of which, by virtue of section 60(2) , a deduction of tax shall not be made, or services related to the development of immovable goods that are subject to Chapter 2 ) which are not used solely for the purposes of either deductible supplies or activities or non-deductible supplies or activities;

F89 [ non-deductible supplies or activities means the supply of goods or services or the carrying out of activities other than deductible supplies or activities, and, in the case of immovable goods acquired or developed by an accountable person on or after 1 January 2011, includes any activity consisting of the use of those goods, or part of those goods, for any purpose other than the accountable person s business; ]

“total supplies and activities” means deductible supplies or activities and non-deductible supplies or activities.

(2) Where an accountable person engages in both deductible supplies or activities and non-deductible supplies or activities, then, in relation to the person’s acquisition of dual-use inputs for the purpose of that person’s business for a period, the person shall be entitled to deduct in accordance with section 59(2) only such proportion of tax, borne or payable on that acquisition, which is calculated in accordance with this section and regulations, as being attributable to his or her deductible supplies or activities and such proportion of tax is, for the purposes of this section, referred to as the “proportion of tax deductible”.

(3) For the purposes of this section, the reference in subsection (2) to “tax, borne or payable” shall, in the case of an acquisition of a qualifying vehicle (within the meaning of section 59(1) ) be deemed to be a reference to “20 per cent of the tax, borne or payable”.

F90 [ (4) Subject to subsection (5) , the proportion of tax deductible by an accountable person in a taxable period shall be calculated on the basis of the ratio which the amount of the person s tax-exclusive turnover from deductible supplies or activities in the accounting year in which that taxable period ends bears to the person s tax-exclusive turnover from total supplies and activities in that accounting year.

(5) Where the proportion of tax deductible calculated in accordance with subsection (4) does not

(a) correctly reflect the extent to which the dual-use inputs are used for the purposes of the person s deductible supplies or activities, or

(b) have due regard to the range of the person s total supplies and activities,

the accountable person shall use any other basis which results in a proportion of tax deductible which

(i) correctly reflects the extent to which the dual-use inputs are used for the purposes of the person s deductible supplies or activities, and

(ii) has due regard to the range of the person s total supplies and activities. ]

(6) Where it is necessary to do so to ensure that the proportion of tax deductible by an accountable person is in accordance with F90 [ this section, ] the accountable person shall—

( a) calculate a separate proportion of tax deductible for any part of that person’s business, or

( b) exclude, from the calculation of the proportion of tax deductible, amounts of turnover from incidental transactions by that person of the kind specified in paragraph 6 of Schedule 1 or amounts of turnover from incidental transactions by that person in immovable goods.

(7) The proportion of tax deductible as calculated by an accountable person for a taxable period shall be adjusted in accordance with regulations if, for the accounting year in which the taxable period ends, that proportion does not—

( a) correctly reflect the extent to which the dual-use inputs are used for the purposes of the person’s deductible supplies or activities, or

( b) have due regard to the range of the person’s total supplies and activities.

Annotations:

Amendments:

F89

Substituted (1.01.2011) by European Union (Value-Added Tax) Regulations 2010 (S.I. No. 612 of 2010), reg. 4(f), in effect as per reg. 1(2).

F90

Substituted (25.12.2016) by Finance Act 2016 (18/2016), s. 46, commenced on enactment.

Editorial Notes:

E16

Method of calculating amount of deduction under section in respect of acquisition of dual-use inputs prescribed (1.01.2011) by Value-Added Tax Regulations 2010 (S.I. No. 639 of 2010), reg. 17, in effect as per reg. 1(2).

62.

Reduction of tax deductible in relation to qualifying vehicles.

[VATA s. 12(4A)]

62.—(1)( a) This subsection applies where an accountable person deducts tax in relation to the purchase, intra-Community acquisition or importation of a qualifying vehicle (within the meaning of section 59(1) ) in accordance with section 59(2)(d) , and disposes of that vehicle within 2 years of that purchase, acquisition or importation.

( b) The accountable person shall be obliged to reduce the amount of the tax deductible by that person for the taxable period in which the qualifying vehicle is disposed of by an amount calculated in accordance with the formula—

TD × (4 — N)

4

where—

TD is the amount of tax deducted by that person on the purchase, acquisition or importation of that vehicle, and

N is a number that is equal to the number of days from the date of purchase, acquisition or importation of that vehicle by that person to the date of disposal by that person, divided by 182 and rounded down to the nearest whole number,

but if that N is greater than 4 then N shall be 4.

(2)( a) This subsection applies where an accountable person deducts tax in relation to the purchase, intra-Community acquisition or importation of a qualifying vehicle (within the meaning of section 59(1) ) in accordance with section 59(2)(d) and that vehicle is subsequently used for less than 60 per cent business purposes in a taxable period.

( b) The accountable person is obliged to reduce the amount of tax deductible by that person for that taxable period by an amount calculated in accordance with the formula—

TD × (4 — N)

4

where—

TD is the amount of tax deducted by that person on the purchase, acquisition or importation of the qualifying vehicle, and

N is a number that is equal to the number of days from the date of purchase, acquisition or importation of that vehicle by that person to the first day of the taxable period in which that vehicle is used for less than 60 per cent business purposes, divided by 182 and rounded down to the nearest whole number,

but if that N is greater than 4 then N shall be 4.

62A.

F91 [ Adjustment of tax deductible in relation to unpaid consideration

62A . (1) Subject to subsection (4) , where

(a) an accountable person has, during a taxable period (referred to in this section as the initial period ), deducted tax in accordance with subsection (2) or (2A) of section 59 , and

(b) the consideration, or part thereof, due to the supplier of the goods or services has not been paid by that accountable person on or before the last day of the third taxable period following the initial period,

that accountable person shall reduce the amount of tax deductible by him or her in accordance with subsection (2) .

(2) Where subsection (1) applies, the accountable person shall reduce the amount of tax deductible by him or her, in the third taxable period following the initial period, by an amount calculated in accordance with the following formula, subject to any apportionment arising in accordance with section 61 :

(A-B) x C

where

A is the total consideration (exclusive of value-added tax),

B is the consideration or part thereof (exclusive of value-added tax) that has been paid, and

C is the percentage rate of tax chargeable in relation to the supply of the goods or services.

(3) Where an accountable person has reduced the amount of tax deductible in a taxable period in accordance with subsection (2) and subsequently that accountable person pays the consideration, or part thereof, due to the supplier of the goods or services, that accountable person shall, in the taxable period in which that consideration, or part thereof, was paid, increase the amount of the tax deductible by him or her, by an amount calculated in accordance with the following formula, subject to any apportionment arising in accordance with section 61 :

D x C

where

D is the consideration or part thereof (exclusive of value-added tax) paid during that period, and

C is the percentage rate of tax chargeable in relation to the supply of the goods or services.

(4) Where, on or before the due date for submission of the return required under section 76 or 77 relating to the third taxable period after the initial period, an accountable person satisfies the Revenue Commissioners that there are reasonable grounds for not having paid the full consideration, or part thereof, to the supplier on or before the date referred to in subsection (1)(b) , this section shall not apply.

(5) The Revenue Commissioners may make regulations in relation to the operation of this section. ]

Annotations:

Amendments:

F91

Inserted (1.01.2014) by Finance (No. 2) Act 2013 (41/2013), s. 60(1), commenced as per s. 60(2).

Editorial Notes:

E17

The section heading is taken from the amending section ( Finance (No. 2) Act 2013 (41/2013), s. 60) in the absence of one included in the amendment.

Chapter 2

Capital goods scheme

63.

Interpretation and application.

[VATA s. 12E(1), (2) and (3)( b)]

63.—(1) In this Chapter—

“adjustment period”, in relation to a capital good, means the period encompassing the number of intervals as provided for in section 64(1)(a) during which adjustments of deductions are required to be made in respect of a capital good;

“base tax amount”, in relation to a capital good, means the amount calculated by dividing the total tax incurred in relation to that capital good by the number of intervals in the adjustment period applicable to that capital good;

“capital goods owner” means—

( a) unless paragraph (b) applies, a taxable person who incurs expenditure on the acquisition or development of a capital good,

F92 [ ( b ) a taxable person, being a flat-rate farmer who incurs expenditure to develop or acquire a capital good, not being expenditure on

(i) a building or structure designed and used solely for the purposes of a farming business, or

(ii) fencing, drainage or reclamation of land,

which has actually been put to use in such a business carried on by him or her; ]

“deductible supplies or activities” has the meaning assigned to it by section 61 ;

“initial interval”—

( a) in relation to a capital good, unless paragraph (b) applies, means a period of 12 months beginning on the date when that capital good is completed,

( b) in relation to a capital good that is supplied following completion, means, for the recipient of that supply, a period of 12 months beginning on the date of that supply;

“initial interval proportion of deductible use”, in relation to a capital good, means the proportion that correctly reflects the extent to which a capital good is used during the initial interval for the purposes of a capital goods owner’s deductible supplies or activities;

“interval”, in relation to a capital good, means the initial, second or subsequent interval in an adjustment period, whichever is appropriate;

“interval deductible amount”, in relation to a capital good in respect of the second and each subsequent interval, means the amount calculated by multiplying the base tax amount in relation to that capital good by the proportion of deductible use for that capital good applicable to the relevant interval;

“non-deductible amount”, in relation to a capital good, means the amount which is the difference between the total tax incurred in relation to that capital good and the total reviewed deductible amount in relation to that capital good;

“proportion of deductible use”, in relation to a capital good for an interval other than the initial interval, means the proportion that correctly reflects the extent to which a capital good is used during that interval for the purposes of a capital goods owner’s deductible supplies or activities;

“reference deduction amount”, in relation to a capital good, means the amount calculated by dividing the total reviewed deductible amount in relation to that capital good by the number of intervals in the adjustment period applicable to that capital good;

“refurbishment” means development on a previously completed building, structure or engineering work;

“second interval”, in relation to a capital good, means the period beginning on the day following the end of the initial interval in the adjustment period applicable to that capital good and ending on the final day of the accounting year during which the second interval begins;

“subsequent interval”, in relation to a capital good, means each accounting year of a capital goods owner in the adjustment period applicable to that capital good, which follows the second interval;

“total reviewed deductible amount”, in relation to a capital good, means the amount calculated by multiplying the total tax incurred in relation to that capital good by the initial interval proportion of deductible use in relation to that capital good;

“total tax incurred”, in relation to a capital good, means—

( a) the amount of tax charged to a capital goods owner in respect of that owner’s acquisition or development of a capital good,

( b) in the case of a transferee where a transfer of ownership of a capital good to which section 20(2)(c) applies—

(i) where such a transfer would have been a supply but for the application of section 20(2)(c) and that supply would have been exempt in accordance with section 94(2) or 95(3) or (7)(b), the total tax incurred that is required to be included in the copy of the capital good record that is required to be furnished by the transferor in accordance with section 64(10)(c) , and

(ii) where such a transfer is not one to which subparagraph (i) applies, the amount of tax that would have been chargeable on that transfer but for the application of section 20(2)(c) and section 56 ,

and

( c) the amount of tax that would have been chargeable but for the application of section 56 to a capital goods owner on the owner’s acquisition or development of a capital good.

(2) This Chapter applies to capital goods—

( a) on the supply or development of which tax was chargeable to a taxable person who carries on a business in the State, or

( b) on the supply of which tax would have been chargeable to a taxable person who carries on a business in the State but for the application of section 20(2)(c) .

Annotations:

Amendments:

F92

Substituted (6.02.2011) by Finance Act 2011 (6/2011), s. 61 and sch. 2 par. 11, commenced on enactment.

64.

Capital goods scheme.

[VATA s. 12E (3)( a), ( c) and ( d) and (4) to (13)]

64.—(1)( a) In relation to a capital good the number of intervals in the adjustment period during which adjustments of deductions are required under this Chapter to be made is—

(i) in the case of refurbishment, 10 intervals,

(ii) in the case of a capital good to which subsection (5)(a) or (b) applies, the number of full intervals remaining in the adjustment period applicable to that capital good plus one as required to be calculated in accordance with the formula set out in subsection (6)(b), and

(iii) in all other cases, 20 intervals.

( b) Where a capital goods owner supplies or transfers by means of a transfer to which section 20(2)(c) applies a capital good during the adjustment period, then the adjustment period for that capital good for that owner shall end on the date of that supply or transfer.

(2)( a) Where the initial interval proportion of deductible use in relation to a capital good differs from the proportion of the total tax incurred in relation to that capital good which was deductible by that owner in accordance with Chapter 1 , then that owner shall, at the end of the initial interval, calculate an amount in accordance with the formula—

A — B

where—

A is the amount of the total tax incurred in relation to that capital good which was deductible by that owner in accordance with Chapter 1 , and

B is the total reviewed deductible amount in relation to that capital good.

( b) Where in accordance with paragraph (a)

(i) A is greater than B, then the amount calculated in accordance with the formula set out in paragraph (a) shall be payable by that owner as if it were tax due in accordance with Chapter 3 of Part 9 for the taxable period immediately following the end of the initial interval, or

(ii) B is greater than A, then that owner is entitled to increase the amount of tax deductible for the purposes of Chapter 1 by the amount calculated in accordance with paragraph (a) for the taxable period immediately following the end of the initial interval.

( c) Where a capital good is not used during the initial interval, then the initial interval proportion of deductible use is the proportion of the total tax incurred that is deductible by the capital goods owner in accordance with Chapter 1 .

(3)( a) Subject to subsection (4)(e), where in respect of an interval (other than the initial interval) the proportion of deductible use for that interval in relation to a capital good differs from the initial interval proportion of deductible use in relation to the capital good, then the capital goods owner shall, at the end of that interval, calculate an amount in accordance with the formula—

C — D

where—

C is the reference deduction amount in relation to that capital good, and

D is the interval deductible amount in relation to that capital good.

( b) Where in accordance with paragraph (a)

(i) C is greater than D, then the amount calculated in accordance with the formula set out in paragraph (a) shall be payable by that owner as if it were tax due in accordance with Chapter 3 of Part 9 for the taxable period immediately following the end of that interval, or

(ii) D is greater than C, then that owner is entitled to increase the amount of tax deductible for the purposes of Chapter 1 by the amount calculated in accordance with the formula set out in paragraph (a) for the taxable period immediately following the end of that interval.

( c) Where for the second or any subsequent interval, a capital good is not used during that interval, the proportion of deductible use in respect of that capital good for that interval shall be the proportion of deductible use for the previous interval.

(4)( a) Where in respect of a capital good for an interval (other than the initial interval) the proportion of deductible use expressed as a percentage differs by more than 50 percentage points from the initial interval proportion of deductible use expressed as a percentage, then the capital goods owner shall at the end of that interval calculate an amount in accordance with the formula—

(C — D) × N

where—

C is the reference deduction amount in relation to that capital good,

D is the interval deductible amount in relation to that capital good, and

N is the number of full intervals remaining in the adjustment period at the end of that interval plus one.

( b) Where in accordance with paragraph (a)

(i) C is greater than D, then the amount calculated in accordance with the formula set out in paragraph (a) shall be payable by that owner as if it were tax due in accordance with Chapter 3 of Part 9 for the taxable period immediately following the end of that interval, or

(ii) D is greater than C, then that owner is entitled to increase the amount of tax deductible for the purposes of Chapter 1 by the amount calculated in accordance with the formula set out in paragraph (a) for the taxable period immediately following the end of that interval.

( c) Paragraph (a) shall not apply to a capital good or part thereof that has been subject to subsection (5)(a) or (b) during the interval to which paragraph (a) applies.

( d) Where a capital goods owner is obliged to carry out a calculation referred to in paragraph (a) in respect of a capital good, then, for the purposes of the remaining intervals in the adjustment period, the proportion of deductible use in relation to that capital good for the interval in respect of which the calculation is required to be made shall be treated as if it were the initial interval proportion of deductible use in relation to that capital good and, until a further calculation is required under paragraph (a), all other definition amounts shall be calculated accordingly.

( e) Where the other provisions of this subsection apply to an interval, then subsection (3) does not apply to the interval.

(5)( a) Where a capital goods owner who is a landlord in respect of all or part of a capital good terminates his or her landlord’s option to tax in accordance with section 97(1) in respect of any letting of that capital good, then—

(i) that owner is deemed, for the purposes of this Chapter, to have supplied and simultaneously acquired the capital good to which that letting relates,

(ii) that supply shall be deemed to be a supply on which tax is not chargeable and no option to tax that supply in accordance with section 94(5) shall be permitted on that supply, and

(iii) the capital good acquired shall be treated as a capital good for the purposes of this Chapter and the amount calculated in accordance with subsection (6)(b) on that supply shall be treated as the total tax incurred in relation to that capital good.

( b) Where in respect of a letting of a capital good that is not subject to a landlord’s option to tax in accordance with section 97(1) , a landlord subsequently exercises a landlord’s option to tax in respect of a letting of that capital good, then—

(i) that landlord is deemed, for the purposes of this Chapter, to have supplied and simultaneously acquired that capital good to which that letting relates,

(ii) that supply shall be deemed to be a supply on which tax is chargeable, and

(iii) the capital good acquired shall be treated as a capital good for the purposes of this Chapter, and—

(I) the amount calculated in accordance with subsection (6)(a) shall be treated as the total tax incurred in relation to that capital good,

(II) the total tax incurred shall be deemed to have been deducted in accordance with Chapter 1 at the time of that supply.

(6)( a)(i) Where—

(I) a capital goods owner supplies a capital good or transfers a capital good, being a transfer to which section 20(2)(c) applies (other than a transfer to which subsection (10)(c) F93 [ applies), ] during the adjustment period in relation to that capital good,

(II) tax is chargeable on that supply, or tax would have been chargeable on that transfer but for the application of section 20(2)(c) , and

(III) the non-deductible amount in relation to that capital good for that owner is greater than zero or, in the case of a supply or transfer during the initial interval, that owner was not entitled to deduct all of the total tax incurred in accordance with Chapter 1 ,

then that owner is entitled to increase the amount of tax deductible by that owner for the purposes of Chapter 1 for the taxable period in which the supply or transfer occurs by an amount (in this paragraph referred to as the “relevant amount”) calculated in accordance with subparagraph (II).

(ii) The relevant amount shall be calculated in accordance with the formula—

E × N

T

where—

E is the non-deductible amount in relation to that capital good or, in the case of a supply before the end of the initial interval, the amount of the total tax incurred in relation to that capital good which was not deductible by that owner in accordance with Chapter 1 ,

N is the number of full intervals remaining in the adjustment period in relation to that capital good at the time of supply plus one,

T is the total number of intervals in the adjustment period in relation to that capital good.

( b)(i) Where—

(I) a capital goods owner supplies a capital good during the adjustment period applicable to that capital good,

(II) tax is not chargeable on that supply, and

(III) either—

(A) the total reviewed deductible amount in relation to that capital good is greater than zero, or

(B) in the case of a supply before the end of the initial interval where the amount of the total tax incurred in relation to that capital good which was deductible by that owner in accordance with Chapter 1 is greater than zero,

then that owner shall calculate, in accordance with subparagraph (ii), an amount (in this paragraph referred to as the “relevant amount”) which shall be payable as if it were tax due in accordance with Chapter 3 of Part 9 for the taxable period in which the supply occurs.

(ii) The relevant amount shall be calculated in accordance with the formula—

B × N

T

where—

B is the total reviewed deductible amount in relation to that capital good or, in the case of a supply to which subparagraph (i)(III)(B) applies, the amount of the total tax incurred in relation to that capital good which that owner claimed as a deduction in accordance with Chapter 1 ,

N is the number of full intervals remaining in the adjustment period in relation to that capital good at the time of supply plus one, and

T is the total number of intervals in the adjustment period in relation to that capital good.

( c) Where a capital goods owner supplies or transfers, being a transfer to which section 20(2)(c) applies, part of a capital good during the adjustment period, then, for the remainder of the adjustment period applicable to that capital good—

(i) the total tax incurred,

(ii) the total reviewed deductible amount, and

(iii) all other definition amounts,

in relation to the remainder of that capital good for that owner shall be adjusted accordingly on a fair and reasonable basis.

(7)( a) Where a tenant who has an interest in immovable goods (other than a freehold equivalent interest) and who is the capital goods owner in respect of a refurbishment of those goods assigns or surrenders the interest during the adjustment period applicable to the refurbishment, then the tenant—

(i) shall, in accordance with the formula set out in subsection (6)(b), calculate an amount in respect of the refurbishment, and

(ii) shall pay the amount as if it were tax due (as provided by Chapter 3 of Part 9 ) for the taxable period in which the assignment or surrender occurs.

( b) Paragraph (a) shall not apply where—

(i) either—

(I) the total reviewed deductible amount in relation to that capital good is equal to the total tax incurred in relation to that capital good, or

(II) in relation to an assignment or surrender that occurs prior to the end of the initial interval in relation to that capital good, the tenant was entitled to deduct all of the total tax incurred in accordance with Chapter 1 in relation to that capital good,

(ii) the tenant enters into a written agreement with the person to whom the interest is assigned or surrendered, to the effect that that person shall be responsible for all obligations under this Chapter in relation to the capital good referred to in paragraph (a) from the date of the assignment or surrender of the interest referred to in paragraph (a), as if—

(I) the total tax incurred and the amount deducted by that tenant in relation to that capital good were the total tax incurred and the amount deducted by the person to whom the interest is assigned or surrendered, and

(II) any adjustments required to be made under this Chapter by the tenant were made,

and

(iii) the tenant issues a copy of the capital good record in respect of the capital good referred to in paragraph (a) to the person to whom the interest is being assigned or surrendered.

( c) Where paragraph (b) applies, the person to whom the interest is assigned or surrendered—

(i) shall be responsible for the obligations referred to in paragraph (b)(ii), and

(ii) shall use the information in the copy of the capital good record issued by the tenant in accordance with paragraph (b)(iii) for the purposes of calculating any tax chargeable or deductible in accordance with this Chapter in respect of that capital good by that person from the date of the assignment or surrender of the interest referred to in paragraph (a).

( d) Where the capital good is one to which subsection (11) applies, paragraphs (a), (b) and (c) shall not apply.

(8)( a) Paragraph (c) applies where—

(i) either—

(I) a capital goods owner supplies a capital good during the adjustment period applicable to that capital good and tax is chargeable on that supply, or

(II) a capital goods owner transfers (other than a transfer to which subsection (10)(c) applies) a capital good during the adjustment period applicable to that capital good and tax would have been chargeable on that transfer but for the application of section 20(2)(c) ,

(ii) at the time of that supply or transfer, that owner and the person to whom the capital good is supplied or transferred are connected within the meaning of section 97 , and

(iii) the amount of tax—

(I) chargeable on the supply of that capital good,

(II) that would have been chargeable on the transfer of that capital good but for the application of section 20(2)(c) , or

(III) that would have been chargeable on the supply but for the application of section 56 ,

is less than the amount (in this subsection referred to as the “adjustment amount”) calculated in accordance with paragraph (b).

( b) The adjustment amount shall be calculated in accordance with the formula—

H × N

T

where—

H is the total tax incurred in relation to that capital good for the capital goods owner making that supply or transfer,

N is the number of full intervals remaining in the adjustment period in relation to that capital good plus one, and

T is the total number of intervals in the adjustment period in relation to that capital good.

( c) The capital goods owner shall calculate an amount, which shall be payable by that owner as if it were tax due in accordance with Chapter 3 of Part 9 for the taxable period in which the supply or transfer occurs, in accordance with the formula—

I — J

where—

I is the adjustment amount, and

J is the amount of tax chargeable on the supply of that capital good, or the amount of tax that would have been chargeable on the transfer of that capital good but for the application of section 20(2)(c) , or the amount of tax that would have been chargeable on the supply but for the application of section 56 .

F94 [ (8A) (a) Paragraph (b) applies where

(i) either

(I) a capital goods owner supplies a capital good which has not been completed and tax is chargeable on that supply, or

(II) a capital goods owner transfers (other than a transfer to which subsection (10)(c) applies) a capital good which has not been completed and tax would have been chargeable on that transfer but for the application of section 20(2)(c) ,

(ii) at the time of that supply or transfer, that owner and the person to whom the capital good is supplied or transferred are connected within the meaning of section 97 , and

(iii) the amount of tax

(I) chargeable on the supply of that capital good,

(II) that would have been chargeable on the transfer of that capital good but for the application of section 20(2)(c) , or

(III) that would have been chargeable on the supply but for the application of section 56 ,

is less than the total tax incurred in relation to that capital good by the capital goods owner making that supply or transfer.

(b) The capital goods owner shall calculate an amount, which shall be payable by that owner as if it were tax due in accordance with Chapter 3 of Part 9 for the taxable period in which the supply or transfer occurs, in accordance with the formula

K L

where

K is the total tax incurred in relation to that capital good by the capital goods owner making that supply or transfer, and

L is the amount of tax chargeable on the supply of that capital good, or the amount of tax that would have been chargeable on the transfer of that capital good but for the application of section 20(2)(c) , or the amount of tax that would have been chargeable on the supply but for the application of section 56 . ]

(9)( a) In this subsection—

“connected supply” means a supply or transfer of a capital good which is a supply or transfer on which a seller would, but for the application of this subsection, be obliged to calculate an amount of tax due in accordance with subsection (8);

“purchaser” means the person to whom the supply or transfer referred to in subsection (8) is made;

“seller” means the capital goods owner referred to in subsection (8) who makes the supply or transfer of the capital good referred to in that subsection.

( b) Subsection (8) shall not apply where—

F95 [ (i) a connected supply occurs and the seller enters into a written agreement with the purchaser to the effect that the purchaser shall be responsible for all obligations under this Chapter in relation to the capital good from the date of the supply or transfer of that capital good, as if

(I) the purchaser had acquired or developed the capital good at the time it was acquired or developed by the seller,

(II) the total tax incurred and the amount deducted by that seller in relation to that capital good were the total tax incurred and the amount deducted by the purchaser, and

(III) any adjustments made in accordance with this Chapter by the seller were made by the purchaser, ]

and

(ii) the seller issues a copy of the capital good record in respect of the capital good referred to in subparagraph (i) to the purchaser.

F95 [ ( c ) Where paragraph (b) applies

(i) the purchaser shall:

(I) be responsible for the obligations referred to in paragraph (b)(i) , and

(II) use the information in the copy of the capital good record issued by the seller in accordance with paragraph (b)(ii) for the purposes of calculating any tax chargeable or deductible in accordance with this Chapter in respect of that capital good by that purchaser from the date on which the supply or transfer referred to in paragraph (b)(i) occurs,

and

(ii) the connected supply shall be deemed not to be a supply for the purposes of this Act. ]

(10)( a) Where a capital goods owner acquires a capital good—

(i) by way of a transfer, being a transfer to which section 20(2)(c) applies other than a transfer to which paragraph (c) applies, on which tax would have been chargeable but for the application of section 20(2)(c) , or

(ii) on the supply or development of which tax was chargeable in accordance with section 56 ,

then, for the purposes of this Chapter, that capital goods owner is deemed to have claimed a deduction in accordance with Chapter 1 of the tax that would have been chargeable—

(I) on the transfer of that capital good but for the application of section 20(2)(c) , less any amount accounted for by that owner in respect of that transfer in accordance with paragraph (b), and

(II) on the supply or development of that capital good but for the application of section 56 .

( b)(i) Where—

(I) a transfer of ownership of a capital good (in this paragraph referred to as the “relevant capital good”) occurs, being a transfer to which section 20(2)(c) applies, but excluding a transfer to which paragraph (c) applies, and

(II) the transferee would not have been entitled to deduct all of the tax that would have been chargeable on that transfer but for the application of section 20(2)(c) ,

then that transferee shall calculate an amount (in this paragraph referred to as the “relevant amount”) in accordance with subparagraph (ii).

(ii) The relevant amount shall be calculated in accordance with the formula—

F — G

where—

F is the amount of tax that would have been chargeable but for the application of section 20(2)(c) , and

G is the amount of that tax that would have been deductible in accordance with Chapter 1 by that transferee if section 20(2)(c) had not applied to that transfer.

(iii) The relevant amount shall be payable by that transferee as if it were tax due in accordance with Chapter 3 of Part 9 for the taxable period in which the transfer occurs.

(iv) For the purposes of this Chapter, the relevant amount shall be deemed to be the amount of the total tax incurred in relation to the relevant capital good that the transferee was not entitled to deduct in accordance with Chapter 1 .

( c) Where a capital goods owner makes a transfer of a capital good to which this paragraph applies—

(i) the transferor shall issue a copy of the capital good record to the transferee,

(ii) the transferee becomes the successor to the capital goods owner who transferred the capital good and is responsible for all obligations of that owner under this Chapter from the date of the transfer of that good, as if—

(I) the total tax incurred and the amount deducted by the transferor in relation to the good were the total tax incurred and the amount deducted by the transferee, and

(II) any adjustments required to be made under this Chapter by the transferor had been made,

and

(iii) the transferee as successor shall use the information in the copy of the capital good record issued by the transferor in accordance with subparagraph (i) for the purpose of calculating the tax chargeable or deductible by the successor in accordance with this Chapter for the remainder of the adjustment period applicable to that good as from the date of its transfer.

( d) Paragraph (c) applies to a transfer of a capital good if—

(i) the transfer is of the kind referred to in section 20(2)(c) , and

(ii) but for the application of section 20(2) , that transfer would be a supply—

(I) that is exempt in accordance with section 94(2) or 95(3) or (7)(b), or

(II) in respect of which tax is chargeable in accordance with section 95(7)(a) .

(11) Where a capital good is destroyed during the adjustment period in relation to that capital good, then no further adjustment under this Chapter shall be made by the capital goods owner in respect of any remaining intervals in the adjustment period in relation to that capital good.

(12) A capital goods owner shall create and maintain a record (in this Chapter referred to as a “capital good record”) in respect of each capital good and that record shall contain sufficient information to determine any adjustments in respect of that capital good required in accordance with this Chapter.

F96 [ (12A) ( a ) In this subsection

end date means the date on which either the mortgagee ceases to have possession or the receiver s appointment ends;

mortgagee includes any person having the benefit of a charge or lien or any person deriving title to the mortgage under the original mortgagee;

F97 [ start date means

(i) where subparagraph (i) or (ii) of paragraph (b) applies, the date on which either the mortgagee takes possession or the receiver is appointed, or

(ii) where subparagraph (i) or (ii) of paragraph (ba) applies, 1 May 2014. ]

( b ) Where a capital good is held as security or is subject to a charge or lien and F98 [ , on or after 27 March 2013, ] either

(i) a mortgagee takes possession, or

(ii) a receiver is appointed by or on the application of a mortgagee or under section 147 of the National Asset Management Agency Act 2009 or by any other means,

then the capital goods owner (in this subsection referred to as the defaulter ) shall furnish a copy of the capital goods record to that mortgagee or that receiver and on and from the start date, but subject to the subsequent provisions of this subsection, that mortgagee or that receiver shall be treated for the purposes of this Chapter as if that mortgagee or that receiver were the capital goods owner.

F99 [ ( ba ) Where a capital good is held as security or is subject to a charge or lien and, before 27 March 2013, either

(i) a mortgagee took possession, or

(ii) a receiver was appointed by or on the application of a mortgagee or under section 147 of the National Asset Management Agency Act 2009 or by any other means,

then the defaulter shall, within 60 days after the date of the passing of the Finance (No. 2) Act 2013 furnish a copy of the capital goods record to that mortgagee or that receiver and on and from the start date, but subject to the subsequent provisions of this subsection, that mortgagee or that receiver shall be treated for the purposes of this Chapter as if that mortgagee or that receiver were the capital goods owner. ]

( c ) Where paragraph (b) F100 [ or (ba) ] applies the mortgagee or the receiver shall be responsible for all obligations of that defaulter under this Chapter as if

(i) the capital good were acquired or developed by that mortgagee or that receiver at the time it was acquired or developed by the defaulter,

(ii) the total tax incurred and the amount deducted by the defaulter in relation to the good were the total tax incurred and the amount deducted by that mortgagee or that receiver, and

(iii) any adjustments required to be made under this Chapter by the defaulter had been made,

and that mortgagee or that receiver shall use the information in the copy of the capital good record issued by the defaulter, in accordance with paragraph (b) F100 [ or (ba) , as appropriate ] , for the purposes of calculating any tax payable F100 [ or deductible ] by that mortgagee or that receiver in accordance with this Chapter and section 76(2) for the remainder of the adjustment period applicable to that capital good.

( d ) Where paragraph (c) applies and if

(i) the mortgagee ceases to have possession (other than where paragraph (h) applies or on a disposal of the capital good), or

(ii) the receiver s appointment ends (other than where paragraph (h) applies) and the capital good has not been disposed of by the receiver,

then that mortgagee or that receiver shall furnish a copy of the capital goods record to the defaulter and from the end date the defaulter shall be treated for the purposes of this Chapter as if that defaulter were the capital goods owner.

( e ) Where paragraph (d) applies the defaulter shall be responsible for all obligations of that mortgagee or that receiver under this Chapter as if

(i) the capital good were acquired or developed by the defaulter at the time it was deemed, in accordance with paragraph (c)(i) , to have been acquired by the mortgagee or the receiver,

(ii) the total tax deemed to be incurred and the amount deemed to be deducted by that mortgagee or that receiver, in accordance with paragraph (c)(ii) , in relation to the good were the total tax incurred and the amount deducted by the defaulter, and

(iii) any adjustments required to be made under this Chapter by that mortgagee or that receiver had been made,

and the defaulter shall use the information in the copy of the capital good record issued by the mortgagee or the receiver, in accordance with paragraph (d) , for the purposes of calculating any tax payable or deductible by that defaulter in accordance with this Chapter for the remainder of the adjustment period applicable to that capital good.

( f ) Where an amount of tax is payable in respect of an interval in accordance with subsection (2)(b)(i) , (3)(b)(i) or (4)(b)(i) , and where the start date or the end date or both occur during that interval, the amount of that tax that shall be payable by the mortgagee or the receiver shall be calculated in accordance with the following formula

J x K

L

where

J is the amount of the tax payable in accordance with subsection (2)(b)(i) , (3)(b)(i) or (4)(b)(i) ,

K is the number of days during the interval in which the mortgagee has possession or the receiver has been appointed,

L is the number of days in the interval,

and the defaulter shall pay the balance (if any).

( g ) Where there is an increase in the amount of tax deductible in respect of an interval in accordance with subsection (2)(b)(ii) , (3)(b)(ii) or (4)(b)(ii) , and where the start date or the end date or both occur during that interval, the amount of that increase in deductibility to which the mortgagee or the receiver shall be entitled shall be calculated using the following formula

M x K

L

where

M is the amount of the increase in deductibility in accordance with subsection (2)(b)(ii) , (3)(b)(ii) or (4)(b)(ii) ,

K is the number of days during the interval in which the mortgagee has possession or the receiver has been appointed,

L is the number of days in the interval,

and the defaulter shall be entitled to the balance (if any).

( h ) Where paragraph (c) applies and if

(i) a mortgagee ceases to have possession and another mortgagee takes possession,

(ii) a mortgagee ceases to have possession and a receiver is appointed,

(iii) a receiver s appointment ends and a mortgagee takes possession, or

(iv) a receiver s appointment ends and another receiver is appointed,

then, in each case, the person who ceases to have possession or whose appointment ends shall furnish a copy of the capital goods record to the mortgagee who takes possession or the receiver who is appointed and, from the start date, that mortgagee or that receiver shall be treated for the purposes of this Chapter as if that mortgagee or that receiver were the capital goods owner and shall be responsible for the obligations of the preceding mortgagee or receiver in accordance with paragraphs (c) and (d) . ]

(13) The Revenue Commissioners may make regulations necessary for the purposes of the operation of this Chapter, in particular in relation to the duration of a subsequent interval where the accounting year of a capital goods owner changes.

Annotations:

Amendments:

F93

Inserted (31.03.2012) by Finance Act 2012 (9/2012), s. 138 and sch. 6 par. 3(d), commenced as per par. 4(b).

F94

Inserted (21.12.2015) by Finance Act 2015 (52/2015), s. 55, commenced on enactment.

F95

Substituted (27.03.2013) by Finance Act 2013 (8/2013), s. 71(a) and (b), commenced on enactment.

F96

Inserted (27.03.2013) by Finance Act 2013 (8/2013), s. 71(c), commenced on enactment.

F97

Substituted (18.12.2013) by Finance (No. 2) Act 2013 (41/2013), s. 62(a), commenced on enactment.

F98

Inserted (18.12.2013) by Finance (No. 2) Act 2013 (41/2013), s. 62(b), commenced on enactment.

F99

Inserted (18.12.2013) by Finance (No. 2) Act 2013 (41/2013), s. 62(c), commenced on enactment.

F100

Inserted (18.12.2013) by Finance (No. 2) Act 2013 (41/2013), s. 62(d), commenced on enactment.

PART 9

Obligations of Accountable Persons

Chapter 1

Registration

65.

Registration.

[VATA s. 9(1) to (2A)]

65.—(1) The Revenue Commissioners shall set up and maintain a register of persons—

( a) who are, or who may become, accountable persons, or

( b) who are persons who F101 [ dispose of goods or supply services which pursuant to section 22(3) or 28(4) or (5) ] are deemed to be supplied by an accountable person in the course or furtherance of his or her business.

(2) The Revenue Commissioners shall assign a registration number to each person registered in accordance with subsection (1).

F102 [ (2A) The Revenue Commissioners may cancel the registration number which has been assigned to a person in accordance with subsection (2) , where that person does not become or ceases to be an accountable person. ]

(3) Every accountable person shall, within the period of 30 days beginning on the day on which the person first becomes an accountable person, furnish in writing to the Revenue Commissioners the particulars specified in regulations as being required for the purpose of registering the person for tax.

(4) F101 [ Every person who disposes of goods or supplies services which pursuant to section 22(3) or 28(4) or (5) are deemed to be supplied by an accountable person in the course of his or her business shall, within 14 days of the disposal or the supply of a service, ] furnish in writing to the Revenue Commissioners the particulars specified in regulations as being required for the purpose of registering the person for tax.

Annotations:

Amendments:

F101

Substituted (27.03.2013) by Finance Act 2013 (8/2013), s. 68(b) and (c), commenced on enactment.

F102

Inserted (21.12.2015) by Finance Act 2015 (52/2015), s. 56, commenced on enactment.

Chapter 2

Invoicing

66.

Issue of invoices and other documents.

[VATA s. 17(1), (1A) and (1C) to (1E)]

66.— F103 [ (1)( a ) An accountable person

(i) who supplies goods or services to

(I) another accountable person,

(II) a public body,

(III) a person who carries on an exempted activity,

(IV) a person (other than an individual) in another Member State in such circumstances that tax is chargeable at any of the rates specified in section 46(1) , or

(V) a person in another Member State who is liable to pay value-added tax pursuant to the VAT Directive on such supply,

or

(ii) who supplies goods to a person in another Member State in the circumstances referred to in section 30(1)(a)(ii) ,

shall issue to the person so supplied, in respect of each such supply, an invoice, in paper format or subject to subsection (2) in electronic format, and containing such particulars as may be specified by regulations.

( b ) Notwithstanding paragraph (a) , an accountable person who supplies goods or services to

(i) another accountable person,

(ii) a public body, or

(iii) a person who carries on an exempted activity in the State,

may instead issue to the person so supplied, a simplified invoice to the amount of 100 or less, in respect of each such supply and in such form and containing such particulars as may be specified by regulations.

( c ) An accountable person who supplies goods or services, which if an invoice (in accordance with paragraph (a) ) were issued at the time of each separate supply of those goods or services would become chargeable to tax within the same calendar month, may instead issue a summary invoice detailing those supplies of goods or services to the person so supplied for that calendar month, in such form and containing such particulars as may be specified by regulations. ]

F104 [ (2) An invoice or other document issued in electronic format by an accountable person is deemed to be so issued for the purposes of subsection (1) , if

( a ) each such invoice or other document is issued and received by prior agreement between the person who issues the invoice or other document and the person who is in receipt of that invoice or document, and

( b ) the electronic system used to issue or receive any such invoice or other document conforms with such specifications as are required by regulations.

(2A)( a ) An accountable person who issues or receives an invoice or other document under this Chapter, and for the purposes of section 84(1) , shall apply business controls to each such invoice or other document to ensure

(i) the authenticity of the origin of that invoice or other document,

(ii) the integrity of the content of that invoice or other document, and

(iii) that there is a reliable audit trail for that invoice or other document and the supply of goods or services as described therein.

( b ) The accountable person shall furnish evidence of the business controls used to comply with paragraph (a) as may be required by the Revenue Commissioners and such evidence shall be subject to such conditions as may be specified in regulations (if any). ]

(3) Where a taxable person who carries on a business in the State supplies greenhouse gas emission allowances (within the meaning of section 16(2) ) to a recipient (within the meaning of section 16(2) ), the person shall issue a document to the recipient indicating—

( a) that the recipient is liable to account for the tax chargeable on that supply, and

( b) such other particulars as would be required to be included in that document if that document were an invoice required to be issued in accordance with subsection (1) but excluding F105 [ the rate at which tax is chargeable and ] the amount of tax payable.

(4)( a) Where a subcontractor who is an accountable person supplies a service to which section 16(3) applies, then the subcontractor shall issue a document to the principal indicating—

(i) that the principal is liable to account for the tax chargeable on that supply, and

(ii) such other particulars as would be required to be included in that document if that document were an invoice required to be issued in accordance with subsection (1) but excluding F105 [ the rate at which tax is chargeable and ] the amount of tax payable.

( b) Where the principal and the subcontractor so agree, section 71(1) may apply to this document as if it were an invoice.

F106 [ (4A)( a ) Where a taxable person who carries on a business in the State supplies scrap metal (within the meaning of section 16(4)(a) ) to a recipient (within the meaning of section 16(4)(b) ), the person shall issue a document to the recipient indicating

(i) that the recipient is liable to account for the tax chargeable on that supply, and

(ii) such other particulars as would be required to be included in that document if that document were an invoice required to be issued in accordance with subsection (1) but excluding F105 [ the rate at which tax is chargeable and ] the amount of tax payable.

( b ) Where the recipient and the person who supplied the scrap metal so agree, section 71(1) may apply to this document as if it were an invoice. ]

F107 [ (4B)( a ) Where an accountable person supplies construction work to which section 16(5)(b) applies, the person shall issue a document to the recipient of such supplies indicating

(i) that the recipient is liable to account for the tax chargeable on that supply, and

(ii) such other particulars as would be required to be included in that document if that document were an invoice required to be issued in accordance with subsection (1) but excluding the rate at which the tax is chargeable and the amount of tax payable.

( b ) Where the recipient and the person who supplied the construction work so agree, section 71(1) may apply to this document as if it were an invoice. ]

F108 [ (4C)( a ) Where a taxable person who carries on a business in the State makes a supply of gas or electricity (to which section 16(6) applies) to a recipient (within the meaning of section 16(6)(b) ), the person shall issue a document to the recipient indicating

(i) that the recipient is liable to account for the tax chargeable on that supply, and

(ii) such other particulars as would be required to be included in that document if that document were an invoice required to be issued in accordance with subsection (1) but excluding the rate at which tax is chargeable and the amount of tax payable.

( b ) Where the recipient and the person who supplied the gas or electricity so agree, F109 [ section 71 ] may apply to this document as if it were an invoice.

(4D)( a ) Where a taxable person who carries on a business in the State makes a supply of a gas or an electricity certificate (within the meaning of section 16(7)(a) ), to a recipient (within the meaning of section 16(7)(b) ), the person shall issue a document to the recipient indicating

(i) that the recipient is liable to account for the tax chargeable on that supply, and

(ii) such other particulars as would be required to be included in that document if that document were an invoice required to be issued in accordance with subsection (1) but excluding the rate at which tax is chargeable and the amount of tax payable.

( b ) Where the recipient and the person who supplied the gas or electricity certificate so agree, section 71(1) may apply to this document as if it were an invoice. ]

(5) F110 [ ]

Annotations:

Amendments:

F103

Substituted (1.01.2013) by European Union (Value-Added Tax) Regulations 2012 (S.I. No. 354 of 2012), reg. 2(c)(i), in effect as per reg. 1(2).

F104

Substituted (1.01.2013) by European Union (Value-Added Tax) Regulations 2012 (S.I. No. 354 of 2012), reg. 2(c)(ii), in effect as per reg. 1(2).

F105

Inserted (31.03.2012) by Finance Act 2012 (9/2012), s. 138 and sch. 6 par. 3(e), commenced as per par. 4(b).

F106

Inserted (1.05.2011) by Finance Act 2011 (6/2011), s. 59(1)(c), commenced as per s. 59(2).

F107

Inserted (1.05.2012) by Finance Act 2012 (9/2012), s. 86(1)(e), commenced as per s. 86(2).

F108

Inserted (1.01.2016) by Finance Act 2015 (52/2015), s. 52(1)(c), commenced as per s. 52(2).

F109

Substituted (25.12.2017) by Finance Act 2017 (41/2017), s. 58(d), commenced on enactment.

F110

Deleted (31.03.2012) by Finance Act 2012 (9/2012), s. 88, commenced on enactment.

Editorial Notes:

E18

Additional information required to be included in document issued by travel agents under subs. (5)(b) prescribed (1.01.2011) by Value-Added Tax Regulations 2010 (S.I. No. 639 of 2010), reg. 32, in effect as per reg. 1(2).

E19

Certain messages issued or received by electronic means deemed to be so issued or received for the purposes of subs. (2) (1.01.2011) by Value-Added Tax Regulations 2010 (S.I. No. 639 of 2010), reg. 21, in effect as per reg. 1(2); as amended (1.01.2013) by Value-Added Tax (Amendment) Regulations 2012 (S.I. No. 458 of 2012), reg. 3, in effect as per reg. 1(2).

E20

Particulars required to be included in invoices prescribed for purposes of subs. (1) (1.01.2011) by Value-Added Tax Regulations 2010 (S.I. No. 639 of 2010), reg. 20, in effect as per reg. 1(2); as amended (1.01.2013) by Value-Added Tax (Amendment) Regulations 2012 (S.I. No. 458 of 2012), reg. 3, in effect as per reg. 1(2).

67.

Amendments to invoices.

[VATA s. 17(3) to (3B), (9) and (11)]

67.—(1) Where, subsequent to the issue of an invoice by a person to another person in accordance with section 66(1) , the consideration as stated in that invoice is increased or reduced, or a discount is allowed, whichever of the following provisions is appropriate shall have effect:

( a) if the consideration is increased, the person shall issue to that other person another invoice in such form and containing such particulars as may be specified by regulations in respect of the increase;

( b) if the consideration is reduced or a discount is allowed—

(i) the person shall issue to that other person a document (in this Act referred to as a “credit note”) containing particulars of the reduction or discount in such form and containing such other particulars as may be specified by regulations, and

(ii) if that other person is an accountable person, the amount which the accountable person may deduct under Chapter 1 of Part 8 shall, in accordance with regulations, be reduced by the amount of tax shown on that credit note.

(2) Where a person who is entitled to receive a credit note under subsection (1)(b) from another person issues to that other person, before the date on which a credit note is issued by that other person, a document (in this subsection referred to as a “debit note”) in such form and containing such particulars as may be specified by regulations, then, for the purposes of this Act—

( a) the person who issues the debit note shall, if the person to whom it is issued accepts it, be deemed to have received from the person by whom the note was accepted a credit note containing the particulars set out in that debit note, and

( b) the person to whom the debit note is issued shall, if he or she accepts it, be deemed to have issued to the person from whom the debit note was received a credit note containing the particulars set out in that debit note.

(3) Notwithstanding subsection (5) and section 69(1) , where a person issues an invoice in accordance with section 66(1) which indicates a rate of tax and subsequent to the issue of that invoice it is established that a lower rate of tax applied, then—

( a) the amount of consideration stated on that invoice shall be deemed to have been reduced to nil,

( b) subsection (1)(b) shall have effect, and

( c) following the issue of a credit note in accordance with subsection (1)(b), the person shall issue another invoice in accordance with this Act and regulations.

(4) Where, subsequent to the issue of an invoice by a person to another person in accordance with section 66(1) in respect of an amount received by way of a deposit, and section 74(4) applies, then—

( a) the amount of the consideration stated on that invoice is deemed to be reduced to nil,

( b) the person shall issue to that other person a document to be treated as if it were a credit note containing particulars of the reduction in such form and containing such other particulars as would be required to be included in that document if that document were a credit note, and

( c) if that other person is an accountable person, the amount which that other person may deduct under Chapter 1 of Part 8 shall be reduced by the amount of tax shown on the document as if that document were a credit note.

(5) Notwithstanding subsection (1) but subject to subsection (6), where, subsequent to the issue to a registered person of an invoice in accordance with section 66(1) , the consideration stated in that invoice is reduced or a discount is allowed in such circumstances that, by agreement between the persons concerned, the amount of tax stated in the invoice is unaltered, then—

( a) paragraph (b) of subsection (1) shall not apply in relation to the person by whom the invoice was issued,

( b) the reduction or discount concerned shall not be taken into account in computing the liability to tax of the person making the reduction or allowing the discount,

( c) section 69(1) shall not apply, and

( d) the amount which the person in whose favour the reduction or discount is made or allowed may deduct in respect of the relevant transaction under Chapter 1 of Part 8 shall not be reduced.

(6) Subsection (5) shall not apply in any case where—

( a) subsection (4) applies, or

( b) the person who issued the invoice referred to in subsection (5) was, at the time of its issue, a person authorised, in accordance with section 80(1) , to determine that person’s tax liability in respect of supplies of the kind in question by reference to the amount of moneys received.

Annotations:

Editorial Notes:

E21

Particulars required to be included in credit notes or debit notes issued in accordance with subs. (1)(b) or (2) as specified (1.01.2011) by Value-Added Tax Regulations 2010 (S.I. No. 639 of 2010), reg. 20(5), in effect as per reg. 1(2).

E22

Particulars required to be included in invoices issued in accordance with subs. (1)(a) as specified (1.01.2011) by Value-Added Tax Regulations 2010 (S.I. No. 639 of 2010), reg. 20(4), in effect as per reg. 1(2).

68.

Flat-rate farmer invoices and other documents.

[VATA s. 17(2), (4), (10), (11A) and (13)]

68.—(1) A flat-rate farmer who, in accordance with section 86(1) , is required to issue an invoice in respect of the supply of agricultural produce or an agricultural service shall, in respect of each such supply, issue an invoice in the form and containing such particulars (in addition to those specified in section 86(1) ) as may be specified by regulations, if the following conditions are fulfilled:

( a) the issue of the invoice is requested by a purchaser;

( b) the purchaser provides the form for the purpose of the invoice and enters the appropriate particulars thereon;

( c) the purchaser gives a copy of the invoice to the flat-rate farmer,

but may issue the invoice if those conditions or any of them are not fulfilled.

(2) Where, subsequent to the issue by a flat-rate farmer of an invoice in accordance with subsection (1), the consideration as stated on the invoice is increased or reduced, or a discount is allowed, whichever of the following provisions is appropriate shall have effect:

( a) in case the consideration is increased—

(i) the flat-rate farmer shall issue another invoice (if the conditions referred to in subsection (1) are fulfilled in relation to it)—

(I) containing particulars of the increase and of the flat-rate addition appropriate thereto, and

(II) in such form and containing such other particulars as may be specified by regulations,

and

(ii) the other invoice referred to in subparagraph (i) shall be deemed, for the purposes of Chapter 1 of Part 8 , to be issued in accordance with section 86(1) ,

but that farmer may not issue the invoice if any of the conditions referred to in subsection (1) is not fulfilled;

( b) in case the consideration is reduced or a discount is allowed—

(i) the flat-rate farmer shall issue a document (in this Chapter referred to as a “farmer credit note”)—

(I) containing particulars of the reduction or discount, and

(II) in such form and containing such other particulars as may be specified by regulations,

and

(ii) the amount which the person may deduct under Chapter 1 of Part 8 or is entitled to be repaid under section 57, 102 or 104(4) or (5) shall, in accordance with regulations, be reduced by an amount equal to the amount of the flat-rate addition appropriate to the amount of the reduction or discount.

(3) Where a person who is entitled to receive a farmer credit note under subsection (2)(b) from another person issues to that other person, before the date on which a farmer credit note is issued by that other person, a document (in this Chapter referred to as a “farmer debit note”) in such form and containing such particulars as may be specified by regulations, then, for the purposes of this Act—

( a) the person who issues the farmer debit note shall, if the person to whom it is issued accepts it, be deemed to have received a farmer credit note (containing the particulars set out in the farmer debit note) from the person by whom the farmer debit note was accepted, and

( b) the person to whom the farmer debit note is issued shall, if he or she accepts it, be deemed to have issued a farmer credit note (containing the particulars set out in the farmer debit note) to the person from whom the farmer debit note was received.

(4) Where—

( a) agricultural produce or agricultural services are supplied to a registered person by a flat-rate farmer, and

( b) the person to whom the agricultural produce or services are supplied issues to the other person, before the date on which an invoice is issued by that other person, a document (in this Act referred to as a “settlement voucher”) in such form and containing such particulars as may be specified by regulations,

then, for the purposes of this Act—

(i) the person who issues the settlement voucher shall, if the person to whom it is issued accepts it, be deemed to have received an invoice (containing the particulars set out in the voucher) from the person by whom the voucher was accepted, and

(ii) the person to whom the settlement voucher is issued shall, if he or she accepts it, be deemed to have issued an invoice (containing the particulars set out in the voucher) to the person from whom the voucher was received.

(5) The provisions of this Act (other than this Chapter) relating to credit notes and debit notes issued under section 67(1) or (2) respectively shall apply in relation to farmer credit notes and farmer debit notes as they apply in relation to such credit notes and debit notes.

F111 [ (6) An invoice, settlement voucher or other document provided for in this section or in section 86(1) shall not issue in respect of supplies of a kind specified in an order made under section 86A . ]

Annotations:

Amendments:

F111

Inserted (1.01.2017) by Finance Act 2016 (18/2016), s. 47(1)(a), commenced as per subs. (2).

Editorial Notes:

E23

Particulars required to be included in certain invoices, credit notes, debit notes and settlement vouchers issued by a flat-rate farmer in accordance with section as specified (1.01.2011) by Value-Added Tax Regulations 2010 (S.I. No. 639 of 2010), reg. 22, in effect as per reg. 1(2).

69.

Invoices or credit notes — errors, etc.

[VATA s. 17(5) to (6A)]

69.—(1) Where an accountable person—

( a) issues an invoice stating a greater amount of tax than that properly attributable to the consideration stated therein, or

( b) issues a credit note stating a lesser amount of tax than that properly attributable to the reduction in consideration or the discount stated therein,

the accountable person shall be liable to pay to the Revenue Commissioners the excess amount of tax stated in the invoice or the amount of the deficiency of tax stated in the credit note.

(2) A person who is not a registered person and who issues an invoice stating an amount of tax shall, in relation to the amount of tax stated, be deemed, for the purposes of this Act, to be an accountable person and shall be liable to pay that amount to the Revenue Commissioners.

(3) Where a person (other than a flat-rate farmer) issues an invoice stating an amount of flat-rate addition, he or she shall be liable to pay to the Revenue Commissioners as tax the amount of flat-rate addition stated and shall, in relation to that amount, be deemed, for the purposes of this Act, to be an accountable person.

(4) Where a flat-rate farmer issues an invoice stating an amount of flat-rate addition otherwise than in respect of an actual supply of agricultural produce or an agricultural service, or in respect of such a supply but stating a greater amount of flat-rate addition than is appropriate to the supply, the farmer shall be liable to pay to the Revenue Commissioners as tax the amount or the excess amount, as the case may be, of the flat-rate addition stated and shall, in relation to that amount or that excess amount, be deemed, for the purposes of this Act, to be an accountable person.

(5) Where a flat-rate farmer, in a case in which he or she is required to issue a farmer credit note under section 68(2)(b) , fails to issue the credit note within the time allowed by regulations, or issues a credit note stating a lesser amount of flat-rate addition than is appropriate to the reduction in consideration or the discount, the farmer shall be liable to pay to the Revenue Commissioners as tax the amount of flat-rate addition that should have been stated on the credit note or the amount of the deficiency of flat-rate addition, as the case may be, and shall, in relation to that amount or that deficiency, be deemed, for the purposes of this Act, to be an accountable person.

70.

Time limits for issuing invoices, etc.

[VATA s. 17(7) and (8)]

70.—(1)( a) An invoice, credit note or document required to be issued in accordance with this Chapter shall be issued within such time after the date of supplying goods or services as may be specified by regulations.

( b) An amendment of an invoice pursuant to section 68(2)(b) shall be effected within such time as may be specified by regulations.

(2) Notwithstanding subsection (1), where payment for the supply of goods or services (other than supplies of the kind specified in paragraph 1(1) or (2) of Schedule 2 ) is made to a person, either in full or by instalments, before the supply is completed, the person shall issue an invoice in accordance with section 66(1) or 68(1) , as may be appropriate, within such time after the date of actual receipt of the full payment or the instalment as may be specified by regulations.

Annotations:

Editorial Notes:

E24

Time limits for issuing invoices, credit notes and documents specified for purposes of section (1.01.2011) by Value-Added Tax Regulations 2010 (S.I. No. 639 of 2010), reg. 23, in effect as per reg. 1(2); as amended (1.01.2013) by Value-Added Tax (Amendment) Regulations 2012 (S.I. No. 458 of 2012), reg. 2(c), in effect as per reg. 1(2).

71.

Self-billing and outsourcing.

[VATA s. 17(14)]

71.—(1) An invoice required under this Chapter to be issued in respect of a supply by a person (in this section referred to as the “supplier”) is deemed to be so issued by that supplier if that invoice is drawn up and issued by the person to whom that supply is made (in this section referred to as the “customer”) where—

( a) there is prior agreement between the supplier and the customer that the customer may draw up and issue the invoice,

( b) the customer is a person registered for value-added tax,

( c) any conditions which are imposed by this Act or by regulations on the supplier in relation to the form, content or issue of the invoice are met by the customer, and

( d) agreed procedures are in place for the acceptance by the supplier of the validity of the invoice.

(2) An invoice, which is deemed to be issued by the supplier in accordance with subsection (1), is deemed to have been so issued when that invoice is accepted by that supplier in accordance with the agreed procedures referred to in subsection (1)(d).

(3) An invoice required to be issued by a supplier under this Chapter shall be deemed to be so issued by that supplier if—

( a) the invoice is issued by a person who acts in the name and on behalf of the supplier, and

( b) any conditions which are imposed by this Act or by regulations on the supplier in relation to the form, content or issue of the invoice are met.

(4) Any credit note or debit note issued in accordance with this Chapter that amends and refers specifically and unambiguously to an invoice is treated as if it were an invoice for the purposes of this section.

(5) The Revenue Commissioners may make regulations in relation to the conditions applying to invoices covered by this section.

Annotations:

Editorial Notes:

E25

Obligation to include endorsement on invoices issued, by an accountable person, in accordance with section prescribed by Value-Added Tax Regulations 2010 (S.I. No. 639 of 2010), reg. 20(6B), as inserted (1.01.2013) by Value-Added Tax (Amendment) Regulations 2012 (S.I. No. 458 of 2012), reg 3(a)(ii), in effect as per reg. 1(2).

72.

Storage of invoices.

[VATA s. 17(15)]

72.—(1) A person who issues, or is deemed to issue, an invoice under this Chapter shall ensure that—

( a) a copy of any invoice issued by the person,

( b) a copy of any invoice deemed to be issued by the person in the circumstances specified in section 71 , and

( c) any invoice received by the person,

is stored and, for the purposes of section 84(1) , the reference to the keeping of full and true records therein shall be construed accordingly in so far as it relates to invoices covered by this Chapter.

(2) Any invoice not stored by electronic means in a manner which conforms with requirements laid down by the Revenue Commissioners shall be stored within the State but, subject to the agreement of the Commissioners and any conditions set by them, the invoice may be stored outside the State.

73.

Requests for particulars in respect of repayment of tax.

[VATA s. 17(12)]

73.—(1)( a) An accountable person shall, if requested in writing by another person and if the request states that the other person is entitled to repayment of tax under section 103 , give to that other person in writing the particulars of the amount of tax chargeable by the accountable person in respect of the supply by the accountable person of the goods or services that are specified in the request.

( b) An accountable person shall, if requested in writing by another person and if the request states that the other person is entitled to repayment of tax under section 57 , 58 , 102 or 104(1) , (4) or (5), give to that other person in writing the particulars specified in regulations for the purposes of section 66(1) in respect of the goods or services supplied by the accountable person to that other person that are specified in the request.

( c) An accountable person shall, if requested in writing by another person and if the request states that the other person is entitled to repayment of tax under section 104(3) , give to that other person in writing the particulars of the amount of tax chargeable by the accountable person in respect of the supply by the accountable person of the radio broadcasting reception apparatus and parts thereof that are specified in the request.

(2) A flat-rate farmer shall, if requested in writing by another person and if the request states that the other person is entitled to repayment of the flat-rate addition under section 57 , 102 or 104(4) or (5), give to that other person in writing the particulars specified in regulations for the purpose of section 68(1) in respect of the goods or services supplied by the flat-rate farmer to that other person that are specified in the request.

(3) A request under subsection (1) or (2) shall be complied with by the person to whom it is given within 30 days after the date on which the request is received by the person.

Chapter 3

Returns and payment of tax

74.

Tax due on supplies.

[VATA s. 19(1), (2) and (2B)]

74.—(1) Tax chargeable under section 3(a) or (c) shall be due—

( a) in case an invoice is required under Chapter 2 to be issued, at the time of issue of the invoice or, if the invoice is not issued in due time, upon the expiration of the period within which the invoice should have been issued,

( b) in case a person is liable under section 69(1) or (2) to pay an amount of tax by reference to an invoice, or credit note, issued by him or her, at the time of issue of that invoice or credit note,

( c) in the case of continuous supplies of telecommunications services or electricity, or of gas which has the meaning assigned to it in paragraph 17(3) of Schedule 3

(i) supplied to a person other than a person to whom an invoice is required to be issued under Chapter 2 , and

(ii) for which there is a statement of account (being a balancing statement or demand for payment which issues at least once every 3 months),

at the time of issue of the statement of account in respect of those supplies, and

( d) in any other case, at the time the goods or services are supplied.

(2) Notwithstanding anything in this Act but subject to subsection (3), the tax chargeable under section 3(a) or (c), other than tax chargeable in respect of supplies of the kind specified in paragraph 1(1) or (2) of Schedule 2 , F112 [ ] shall be due not later than the time when the amount in respect of which it is payable has been received in full or in part, and where the amount is received in full or in part before the supply of the goods or services to which it relates, a supply for a consideration equal to the amount received of such part of the goods or services as is equal in value to the amount received, shall be deemed, for the purposes of this Act, to have taken place at the time of such receipt.

(3) Subsection (2) does not apply to the tax chargeable in respect of supplies of goods or services where tax is due in accordance with subsection (1)(a), (b) or (c) by an accountable person who is not authorised under section 80 to account for tax due by reference to the amount of the moneys received during a taxable period or part thereof.

(4) Where a person accounts in accordance with section 76 or 77 for tax referred to in subsection (2) on an amount received by way of a deposit from a customer before the supply of the goods or services to which it relates, and—

( a) that supply does not subsequently take place owing to a cancellation by the customer,

( b) the cancellation is recorded as such in the books and records of that person,

( c) the deposit is not refunded to the customer, and

( d) no other consideration, benefit or supply is provided to the customer by any person in lieu of the refund of that amount,

then the tax chargeable under section 3(a) or (c) shall be reduced in the taxable period in which the cancellation is recorded by the amount of tax accounted for on the deposit.

Annotations:

Amendments:

F112

Deleted (6.02.2011) by Finance Act 2011 (6/2011), s. 61 and sch. 2 par. 12, commenced on enactment.

75.

Tax due on intra-Community acquisitions.

[VATA s. 19(1A)]

75.— Tax chargeable under section 3(d) or (e) shall be due—

( a) on the 15th day of the month following that during which the intra-Community acquisition occurs,

( b) in case an invoice is issued before the date specified in paragraph (a) by the supplier in another Member State to the person acquiring the goods, when that invoice is issued.

76.

Returns and remittances.

[VATA s. 19(3)( a) and ( b) to ( d)]

76.—(1) Subject to subsection (2) F113 [ and sections 91C(3) and 91E(3) ] , an accountable person shall, within 9 days immediately after the 10th day of the month immediately following a taxable period—

( a) furnish to the Collector-General a true and correct return, prepared in accordance with regulations, of—

(i) the amount of tax which became due by the person during that taxable period (other than tax already paid by him or her in relation to goods imported by him or her),

(ii) the amount (if any) which may be deducted in accordance with Chapter 1 of Part 8 in computing the amount of tax payable by the person in respect of that taxable period, and

(iii) such other particulars as may be specified in regulations,

and

( b) remit to the Collector-General, at the same time as so furnishing such return, the amount of tax (if any) payable by the person in respect of that taxable period.

(2) F114 [ A person who disposes of goods or supplies services which pursuant to section 22(3) or 28(4) or (5) ] are deemed to be supplied by an accountable person in the course or furtherance of his or her business shall—

( a) within 9 days immediately after the 10th day of the month immediately following a taxable period—

F115 [ (i) furnish to the Collector-General

(I) a true and correct return, prepared in accordance with regulations, of the total amount of tax which became due in that taxable period, by

(A) the accountable person in relation to the disposal of the goods or the supply of the services, and

(B) the receiver, liquidator or other person exercising a power, in relation to any adjustment required under Chapter 2 of Part 8 or section 95(4)(c) ,

and

(II) such other particulars as may be specified in regulations, ]

(ii) remit to the Collector-General, at the same time as so furnishing such return, the amount of tax payable in respect of that taxable period,

F116 [ ( b ) send to the accountable person deemed to have disposed of the goods or supplied the services a statement containing such particulars as may be specified in regulations, and ]

( c) treat the amount of tax referred to in paragraph (a) as a necessary disbursement F117 [ out of the proceeds of the disposal or the income from the services deemed to be supplied by the accountable person. ]

(3) F118 [ The owner of the goods or the supplier of the services which pursuant to section 22(3) or 28(4) or (5) ] are deemed to be supplied by an accountable person in the course or furtherance of the accountable person’s business shall exclude from any return which the owner is or, but for this subsection, would be required to furnish under this Act, the tax payable in accordance with subsection (2).

(4)( a)(i) A return required to be furnished by an accountable person under this section or section 77 F119 [ , or an adjustment to a return as referred to in section 77A , ] may be furnished by the accountable person or another person acting under the accountable person’s authority for that purpose.

(ii) A return purporting to be a return furnished by a person acting under an accountable person’s authority shall be deemed to be a return furnished by the accountable person unless the contrary is proved.

( b) Where a return in accordance with paragraph (a) is furnished by a person acting under an accountable person’s authority, the provisions of any enactment relating to value-added tax shall apply as if that return had been furnished by the accountable person.

Annotations:

Amendments:

F113

Inserted (1.01.2015) by European Union (Value-Added Tax) Regulations 2014 (S.I. No. 340 of 2014), reg. 3(d), in effect as per reg. 2(1).

F114

Substituted (27.03.2013) by Finance Act 2013 (8/2013), s. 68(d), commenced on enactment.

F115

Substituted (27.03.2013) by Finance Act 2013 (8/2013), s. 68(e), commenced on enactment.

F116

Substituted (27.03.2013) by Finance Act 2013 (8/2013), s. 68(f), commenced on enactment.

F117

Substituted (27.03.2013) by Finance Act 2013 (8/2013), s. 68(g), commenced on enactment.

F118

Substituted (27.03.2013) by Finance Act 2013 (8/2013), s. 68(h), commenced on enactment.

F119

Substituted (21.12.2015) by Finance Act 2015 (52/2015), s. 53(a), commenced on enactment.

77.

Authorisations in relation to filing dates.

[VATA s. 19(3)( aa)]

77.—(1)( a) In this section—

“accounting period” means a period, as determined by the Collector-General from time to time in any particular case, consisting of a number of consecutive taxable periods not exceeding 6 or such other period not exceeding a continuous period of 12 months as may be specified by the Collector-General;

“authorised person” means an accountable person who has been authorised in writing by the Collector-General for the purposes of this section, and “authorise” and “authorisation” shall be construed accordingly.

( b) Where an accounting period begins before the end of a taxable period, the period of time from the beginning of the accounting period to the end of the taxable period during which the accounting period begins shall, for the purposes of this section, be treated as if such period of time were a taxable period, and any references in this section to a taxable period shall be construed accordingly.

( c) Where an accounting period ends after the beginning of a taxable period, the period of time from the beginning of the taxable period during which the accounting period ends to the end of the accounting period shall, for the purposes of this section, be treated as if such period of time were a taxable period, and any references in this section to a taxable period shall be construed accordingly.

(2) Notwithstanding section 76(1)

( a) the Collector-General may, from time to time, authorise in writing an accountable person for the purposes of this section unless the accountable person objects in writing to the authorisation,

( b) an authorised person may, within 9 days immediately after the 10th day of the month immediately following an accounting period—

(i) furnish to the Collector-General a true and correct return prepared in accordance with regulations of—

(I) the amount of tax which became due by the person during the taxable periods which comprise the accounting period (other than tax already paid by him or her in relation to goods imported by him or her),

(II) the amount (if any) which may be deducted in accordance with Chapter 1 of Part 8 in computing the amount of tax payable by the person in respect of those taxable periods, and

(III) such other particulars as may be specified in regulations,

and

(ii) remit to the Collector-General, at the same time as so furnishing such return, any amount of tax payable by the person in respect of those taxable periods,

( c) in the case of an authorised person referred to in subsection (5), the amount of tax referred to in paragraph (b)(ii) shall be the balance of tax remaining to be paid (if any) after deducting from it the amount of tax paid by the person by direct debit in respect of his or her accounting period,

( d) where the authorised person concerned furnishes and remits in accordance with this subsection, the person shall be deemed to have complied with section 76(1) in relation to those taxable periods.

(3) For the purposes of issuing an authorisation to an accountable person, the Collector-General shall, where he or she considers it appropriate, have regard to the following matters:

( a) he or she has reasonable grounds to believe that—

(i) the authorisation will not result in a loss of tax, and

(ii) the accountable person will meet all of his or her obligations under the authorisation;

and

( b) the accountable person—

(i) has been a registered person during all of the period consisting of the 6 taxable periods immediately preceding the period in which an authorisation would, if it were issued, have effect, and

(ii) has complied with section 76(1) .

(4) An authorisation may—

( a) be issued without conditions or subject to such conditions as the Collector-General, having regard in particular to the considerations referred to in subsection (3), considers proper and specifies in writing to the accountable person concerned when issuing the authorisation,

( b) without prejudice to the generality of paragraph (a), require an authorised person to remit to the Collector-General, within 9 days immediately after the 10th day of the month immediately following each taxable period (other than the final taxable period) which is comprised in an accounting period, such an amount as may be specified by the Collector-General.

(5)( a) Without prejudice to the generality of subsection (4), an authorisation may require an authorised person to agree with the Collector-General a schedule of amounts of money (in this subsection referred to as “the schedule”) which he or she undertakes to pay on dates specified by the Collector-General by monthly direct debit from his or her account with a financial institution.

( b) The total of the amounts specified in the schedule shall be the authorised person’s best estimate of his or her total tax liability for his or her accounting period.

( c) The authorised person shall review on an on-going basis whether the total of the amounts specified in the schedule is likely to be adequate to cover his or her actual liability for his or her accounting period and, where this is not the case or is not likely to be the case, he or she shall agree a revised schedule of amounts with the Collector-General and adjust his or her monthly direct debit amounts accordingly.

(6) The Collector-General may, by notice in writing, terminate an authorisation and, where an accountable person requests the Collector-General to do so, he or she shall terminate the authorisation.

(7) For the purposes of terminating an authorisation, the Collector-General shall, where he or she considers it appropriate, have regard to the following matters:

( a) he or she has reasonable grounds to believe that the authorisation has resulted or could result in a loss of tax; or

( b) the accountable person—

(i) has furnished, or there is furnished on his or her behalf, any incorrect information for the purposes of the issue to him or her of an authorisation, or

(ii) has not complied with section 76(1) or this section, including the conditions (if any) specified by the Collector-General under subsection (4) or (5) in relation to the issue to him or her of an authorisation.

(8) In relation to any taxable period in respect of which he or she has not complied with section 76(1) , a person whose authorisation is terminated shall be deemed to have complied with that section if, within 14 days of the issue to him or her of a notice of termination, he or she—

( a) furnishes to the Collector-General the return specified in section 76(1) , and

( b) remits to the Collector-General, at the same time as so furnishing such return, the amount of tax payable by him or her in accordance with section 76(1) .

(9)( a) An authorisation shall be deemed to have been terminated by the Collector-General on the date that an authorised person—

(i) ceases to trade (other than for the purposes of disposing of the stocks and assets of his or her business), whether for reasons of insolvency or any other reason,

(ii) being a body corporate, goes into liquidation, whether voluntarily or not, or

(iii) ceases to be an accountable person, dies or becomes bankrupt.

( b) An accountable person to whom this subsection relates shall, in relation to any taxable period (or part of a taxable period) comprised in the accounting period which was in operation in his or her case on the date to which paragraph (a) relates, be deemed to have complied with section 76(1) if he or she—

(i) furnishes to the Collector-General the return specified in subsection (2)(b), and

(ii) remits to the Collector-General, at the same time as so furnishing such return, the amount of tax payable by him or her for the purposes of subsection (2)(b) as if he or she were an authorised person whose accounting period ended on the last day of the taxable period during which the termination occurred.

( c) For the purposes of paragraph (b), the personal representative of a person who was an authorised person shall be deemed to be the accountable person concerned.

Annotations:

Editorial Notes:

E26

Procedure for filing return in accordance with section prescribed (1.01.2011) by Value-Added Tax Regulations 2010 (S.I. No. 639 of 2010), regs. 24, in effect as per reg. 1(2).

77A

F120 [ Adjustments to returns

77A. (1) Where, following the submission to the Collector-General of a return (in this section referred to as an original return ) required to be furnished under section 76 or 77 , as appropriate, that return is adjusted by an accountable person by means of

(a) a correction to the original return,

(b) a replacement of the original return, or

(c) a supplement to the original return,

(in this section and in section 76(4) referred to as an adjustment to a return ) the provisions of any enactment relating to value-added tax shall apply to that adjustment to a return as if it were a return required to be furnished under section 76 or 77 , as appropriate.

(2) Any adjustment to a return to which subsection (1) applies shall, where applicable, be deemed to be a claim for a refund of tax and be subject to the provisions of section 99 . ]

Annotations:

Amendments:

F120

Inserted (21.12.2015) by Finance Act 2015 (52/2015), s. 53(b), commenced on enactment.

78.

Electronic remittances and returns.

[VATA s. 19(3A)]

78.—(1) In this section—

“electronic remittance” means a remittance made by such electronic means (within the meaning of section 917EA of the Taxes Consolidation Act 1997) as are required by the Revenue Commissioners;

“electronic return” means a return made by electronic means and in accordance with Chapter 6 of Part 38 of the Taxes Consolidation Act 1997;

“relevant provisions” mean sections 76(1) and (2) and 77(2)(b) and (4)(b).

(2) Subject to subsection (3), where an electronic remittance or, as the case may be, an electronic return and electronic remittance of the amount payable (if any) referred to in the relevant provisions is or are made, then the relevant provisions shall apply and have effect as if “13 days” were substituted for “9 days” in each place where the latter occurs in the relevant provisions.

(3) Where the remittance or return referred to in subsection (2) is made after the period provided for in that subsection, this Act shall apply and have effect without regard to the other provisions of this section.

79.

Special provisions in relation to payment dates.

[VATA s. 19(4) to (6)]

79.—(1) In this section—

“registration of the vehicle” means the registration of the vehicle in accordance with section 131 of the Finance Act 1992;

“vehicle registration tax” means the tax referred to in section 132 of the Finance Act 1992.

(2) Notwithstanding sections 76 and 77 , where a person makes an intra-Community acquisition of a new means of transport (other than a vessel or aircraft) in respect of which he or she is not entitled to a deduction under Chapter 1 of Part 8 , then—

( a) the tax shall be payable—

(i) subject to subparagraphs (ii) and (iii), at the time of payment of the vehicle registration tax,

(ii) subject to subparagraph (iii), if no vehicle registration tax is payable, at the time of registration of the vehicle,

(iii) if section 131 of the Finance Act 1992 does not provide for the registration of the vehicle, at a time not later than the time when the tax is due in accordance with section 75 ,

( b) the person shall complete such form as may be provided by the Revenue Commissioners for the purpose of this subsection, and

( c) the provisions relating to the recovery and collection of vehicle registration tax shall apply, with such exceptions and modifications (if any) as may be specified in regulations, to tax referred to in this subsection as if it were vehicle registration tax.

(3) Notwithstanding sections 76 and 77 , where a person makes an intra-Community acquisition of a new means of transport which is a vessel or aircraft, in respect of which he or she is not entitled to a deduction under Chapter 1 of Part 8 , then—

( a) the tax shall be payable at a time and in a manner to be determined by regulations, and

( b) the provisions relating to the recovery and collection of a duty of customs shall apply, with such exceptions and modifications (if any) as may be specified in regulations, to tax referred to in this subsection as if it were a duty of customs.

(4) Notwithstanding sections 76 and 77 , where section 11(2) applies—

( a) the tax shall be payable at the time of payment of the duty of excise on the goods, and

( b) the provisions relating to the recovery and collection of that duty of excise shall apply, with such exceptions and modifications (if any) as may be specified in regulations, to tax referred to in this subsection as if it were that duty of excise.

(5) Notwithstanding sections 76 and 77 , F121 [ where section 91 , 91C or 91E ] applies, the tax shall be F121 [ payable at the time specified in section 91(6) , 91C(4) or 91E(4) , as the case may be ].

Annotations:

Amendments:

F121

Substituted (1.01.2015) by European Union (Value-Added Tax) Regulations 2014 (S.I. No. 340 of 2014), reg. 3(e), in effect as per reg. 2(1).

Chapter 4

Tax due on moneys received

80.

Tax due on moneys received basis.

[VATA s. 14]

80.—(1) A person who satisfies the Revenue Commissioners that—

( a) taking one period with another, at least 90 per cent of the person’s turnover is derived from taxable supplies to persons who are not registered persons, or

( b) the total consideration which the person is entitled to receive in respect of the person’s taxable supplies has not exceeded and is not likely to exceed F122 [ 2,000,000 ] in any continuous period of 12 months,

may, in accordance with regulations, be authorised to determine the amount of tax which becomes due by the person during any taxable period (or part thereof) during which the authorisation has effect by reference to the amount of the moneys which the person receives during that taxable period (or part thereof) in respect of taxable supplies.

(2) Where an authorisation to which subsection (1) relates has not been cancelled under subsection (4), then—

( a) the rate of tax due by the person concerned in respect of a supply shall be the rate of tax chargeable at the time the goods or services are supplied,

( b) if tax on a supply has already been due and payable under any other provisions of this Act prior to the issue of that authorisation, tax shall not be due again in respect of any such supply as a result of the application of subsection (1), and

( c) if no tax is due or payable on a supply made prior to the issue of that authorisation, tax shall not be due in respect of any such supply as a result of the application of subsection (1).

(3)( a) The Minister may, by order—

(i) increase the amount specified in subsection (1)(b), or

(ii) where an amount stands specified by virtue of an order under this paragraph, including an order relating to this subparagraph, further increase the amount so specified.

( b) An order under paragraph (a) shall be laid before Dáil Éireann as soon as may be after it is made and, if a resolution annulling the order is passed by Dáil Éireann within the next 21 sitting days on which Dáil Éireann has sat after the order is laid before it, the order shall be annulled accordingly, but without prejudice to the validity of anything previously done thereunder.

(4) The Revenue Commissioners—

( a) may, in accordance with regulations, cancel an authorisation under subsection (1), and

( b) may, by regulations, exclude from the application of subsection (1) any tax due in respect of specified descriptions of supplies of goods or services and any moneys received in respect of such supplies.

(5) Where an authorisation has issued to any person in accordance with subsection (1) and the person fails to issue a credit note in accordance with section 67(1)(b) in respect of any supply where the consideration as stated in the invoice issued by that person for that supply is reduced or a discount is allowed, then, at the time when a credit note should have issued in accordance with section 70(1)

( a) such tax as is attributable to the reduction or discount shall be treated as being excluded from the application of subsection (1), and

( b) the person shall be liable for that tax as if it were tax due in accordance with Chapter 3 at that time.

(6) This section does not apply to tax provided for by section 3(b) , (d) or (e).

Annotations:

Amendments:

F122

Substituted (1.05.2014) by Finance (No. 2) Act 2013 (41/2013), s. 63, commenced as