Value-Added Tax (Amendment) Act, 1978

Amendment of section 11 of Principal Act.

9.—Section 11 of the Principal Act is hereby amended by the substitution of the following subsections for subsections (1), (2), (3) and (4A):

“(1) Tax shall, subject to subsection (2), be charged at whichever of the following rates is appropriate in any particular case—

(a) 10 per cent. of the amount on which tax is chargeable in relation to the supply of goods of a kind specified in Part I of the Third Schedule or the supply of services of a kind specified in Part II of that Schedule,

(b) zero per cent. of the amount on which tax is chargeable in relation to the supply of any goods in the circumstances specified in paragraph (i) of the Second Schedule or the supply of goods of a kind specified in paragraphs (v) (a) and (b), (vii), (viii), (x), (xii) to (xv) and (xvii) to (xx) of that Schedule or the supply of services of a kind specified in that Schedule, and

(c) 20 per cent. of the amount on which tax is chargeable in relation to the supply of any other goods or services.

(2) (a) In relation to the supply of livestock, tax shall be chargeable at the rate specified in subsection (1) (a) on 10 per cent. of the total amount on which tax is chargeable and at the rate of zero per cent. on the balance of the said total amount.

(b) On the supply of immovable goods and on the supply of services consisting of the development of immovable goods, or the maintenance and repair of those goods including the installation of fixtures, if the value of movable goods (if any) provided in pursuance of the agreement for making any such supply does not exceed two-thirds of the total amount on which tax is chargeable in respect of the agreement, tax shall be chargeable at the rate specified in subsection (1) (a) on 30 per cent, of the total amount on which tax is chargeable and at the rate of zero per cent. on the balance of the said total amount.

(3) Subject to section 10 (8), where—

(a) supplies of different kinds are made for a consideration in money which is referable to all the supplies and not separately to the different kinds of supplies, and

(b) one or both of the following subparagraphs applies or apply, that is to say—

(i) but for this subsection, tax would not be chargeable in respect of one or more (but not all) of the supplies,

(ii) but for this subsection, tax would (apart from subsection (2)) fall to be charged at two or more of the rates specified in subsection (1) in respect of the supplies,

then, unless regulations provide for apportionment of the consideration—

(c) where subparagraph (i) (but not subparagraph (ii)) of paragraph (b) applies, tax shall be chargeable in respect of all the supplies at the rate specified in subsection (1) appropriate to the supply of taxable goods or services included in the supplies,

(d) where subparagraph (ii) of paragraph (b) applies (whether alone or with subparagraph (i) of that paragraph), tax shall be chargeable in respect of all the supplies at the higher or highest rate (as the case may be) specified in subsection (1) appropriate to the supply of any taxable goods or services included in the supplies:

Provided that, where goods—

(I) are chargeable with tax at different rates,

(II) are packaged for sale as a unit, and

(III) are offered for sale for a consideration in money which is referable to the package as a whole and not to the different kinds of goods included therein,

the inclusion in the package of goods chargeable at a particular rate shall not be taken into account for the purpose of the preceding provisions of this subsection where the total tax-exclusive value of such goods does not exceed 50 per cent. of the total tax-exclusive consideration for the package or 5 pence, whichever is the lesser, and, in any such case, the rate of tax chargeable in relation to the package shall be determined by reference to the other goods included therein.

(4A) Where—

(a) goods of a kind specified in paragraph (xii) of the Second Schedule are used by a person in the course of the supply by him 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 under this Act, to pay tax on the value of the goods so used at the rate specified in section 11 (1) (a).”.