Finance Act 2010

SCHEDULE 3

Pre-consolidation amendments and repeals ( Part 4 )

Section 132 .

Amendment of Value-Added Tax Act 1972

Amendment of section 1 of Principal Act (interpretation).

1. Section 1 of the Principal Act is amended as follows:

(a) by inserting in subsection (1) the following definition after the definition of “electronically supplied services”:

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

(b) in the definition of “excisable products” in subsection (1), by substituting “ section 97 of the Finance Act 2001 ” for “ section 104 of the Finance Act, 1992 ”;

(c) in subsection (1), by inserting the following definition after the definition of “goods”:

“ ‘goods threshold’ means €75,000;”;

(d) in subsection (1), by inserting the following definition after the definition of “secretary”:

“ ‘services threshold’ means €37,500;”;

(e) in subsection (1), by inserting the following definition after the definition of “the specified day”:

“ ‘stock-in-trade’, in relation to a person, means goods—

(a) that are 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 3(1)(e)), or

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

or

(b) materials incorporated in 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,

or

(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, 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;”;

(f) by inserting the following subsections after subsection (1):

“(1A) Materials of the kind that are referred to in paragraph (b) of the definition of ‘stock-in-trade’ are 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.

(1B) Materials of the kind referred to in paragraph (c) of the definition of ‘stock-in-trade’ are taken to have been supplied to the extent that the service in relation to which they have been used has been supplied.”;

(g) by repealing subsections (3) and (4).

Amendment of section 3 of the Principal Act (supply of goods).

2. Section 3 of the Principal Act is amended in subsection (7)(ii) by substituting “any assignment or surrender that is deemed to be a supply of immovable goods as provided by section 4C(4)” for “any disposal which is deemed to be a supply of immovable goods under section 4(2)”.

Amendment of section 7 of the Principal Act (waiver of exemption).

3. Section 7 of the Principal Act is amended in subsection (1A)(a)—

(a) by substituting “2 April 2007” for “the date of passing of the Finance Act 2007 ”, where firstly occurring, and

(b) by substituting “that date” for “the date of passing of the Finance Act 2007 ”, where secondly occurring.”.

Amendment of section 7B of the Principal Act (transitional measures: waiver of exemption).

4. Section 7B of the Principal Act is amended as follows:

(a) in subsection (6)—

(i) by substituting “24 December 2008” for “the date of passing of the Finance (No. 2) Act 2008 ”, where firstly occurring, and

(ii) by substituting “on or after the last mentioned date” for “the date of passing of the Finance (No. 2) Act 2008 ”, where secondly occurring, and

(iii) by substituting “the taxable period beginning on 1 November 2008” for “the taxable period in which that Act is passed”;

(b) in subsection (7)—

(i) in paragraph (a), by substituting “2 June 2009” for “the relevant date” wherever occurring;

(ii) in paragraph (b)(i), by substituting “3 June 2009” for “the date of the passing of the Finance Act 2009 ”;

(c) in subsection (8)(a)(i), by substituting “2 June 2009” for “the relevant date”;

(d) in subsection (8)(b), by substituting “3 June 2009” for “the date of the passing of the Finance Act 2009 ”;

(e) in subsection (9)(a)(i), by substituting “3 June 2009” for “the date of the passing of the Finance Act 2009 ”;

(f) in subsection (10)—

(i) by substituting “exemption.” for “exemption;”, and

(ii) by deleting the definition of “relevant date”.

Amendment of section 8 of the Principal Act (accountable persons).

5. Section 8 of the Principal Act is amended as follows:

(a) by substituting “the goods threshold” for “€75,000”, wherever occurring;

(b) by substituting “the services threshold” for “€37,500”, wherever occurring;

(c) in subsection (1A)(e), by substituting the following subparagraphs for subparagraphs (i) to (iii):

“(i) a Department of State or a local authority, or

(ii) a body established by an enactment,”;

(d) in subsection (1B), by deleting paragraph (c);

(e) in subsection (3)(c)(i), by deleting “subject to subparagraph (ii),”.

Amendment of section 10 of the Principal Act (amount on which tax is chargeable).

6. Section 10 of the Principal Act is amended in subsection (3)(c) by substituting “section 4C” for “section 4”.

Amendment of section 10B of the Principal Act (special scheme for auctioneers).

7. Section 10B of the Principal Act is amended in subsection (1) by substituting the following paragraph for paragraph (aaa) of the definition of “auction scheme goods”:

“(aaa) an insurer to whom paragraph (d) of section 3(5) applies—

(i) who took possession of those goods in connection with the settlement of a claim under a policy of insurance, and

(ii) whose disposal of the goods is deemed not to be a supply of the goods as provided by that paragraph,”.

Amendment of section 11 of the Principal Act (rates of tax).

8. Section 11 of the Principal Act is amended in subsection (1) by deleting paragraph (c).

Amendment of section 12 of the Principal Act (deduction for tax borne or paid).

9. Section 12 of the Principal Act is amended by repealing subsection (1)(a)(iiib), subsection (1)(a)(v) and subsection (1A)(c).

Amendment of section 12E of the Principal Act (capital goods scheme).

10. Section 12E (inserted by the Finance Act 2008 ) of the Principal Act is amended as follows:

(a) in subsection (8), by substituting the following paragraph for paragraph (a):

“(a) If 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, the tenant—

(i) shall, in accordance with the formula set out in subsection (7)(b), calculate an amount in respect of the refurbishment, and

(ii) shall pay the amount as if it were tax due (as provided by section 19) for the taxable period in which the assignment or surrender occurs.”;

(b) by substituting the following subsections for subsection (10):

“(10) If a capital goods owner makes a transfer of a capital good to which this subsection applies—

(a) the transferor shall issue a copy of the capital good record to the transferee, and

(b) 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 section 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 section by the transferor had been made,

and

(c) the transferee as successor shall use the information in the copy of the capital good record issued by the transferor in accordance with paragraph (a) for the purpose of calculating the tax chargeable or deductible by the successor in accordance with this section for the remainder of the adjustment period applicable to that good as from the date of its transfer.

(10A) Subsection (10) applies to a transfer of a capital good if—

(a) the transfer is of a kind referred to in section 3(5)(b)(iii), and

(b) but for the application of section 3(5)(b), that transfer would be a supply—

(i) that is exempt in accordance with section 4B(2) or section 4C(2) or (6)(b), or

(ii) in respect of which tax is chargeable in accordance with section 4C(6)(a).”.

Amendment of section 15 of the Principal Act (charge of tax on imported goods).

11. Section 15 of the Principal Act is amended by repealing subsections (1) and (6A).

Amendment of section 15A of the Principal Act (goods in transit).

12. Section 15A of the Principal Act is repealed.

Amendment of section 16 of the Principal Act (duty to keep records).

13. Section 16 of the Principal Act (as amended by the Finance Act 2008 ) is amended by substituting the following subsection for subsection (5):

“(5) The requirement to keep records in accordance with this section applies to the following:

(a) a record relating to exercising and terminating a landlord’s option to tax;

(b) a capital good record referred to in section 12E;

(c) a record relating to a joint option for taxation;

(d) the document relating to an assignment or surrender referred to in section 4C(8)(a).”.

Amendment of section 19 of the Principal Act (tax due and payable).

14. Section 19 of the Principal Act is amended by repealing subsection (2A).

Amendment of section 20 of the Principal Act (refund of tax).

15. Section 20 of the Principal Act is amended in subsection (4) by substituting the following subsection:

“(4) A claim for a refund under this Act may be made only within 4 years after the end of the taxable period to which it relates.”.

Amendment of section 25 of the Principal Act (appeals).

16. Section 25 of the Principal Act is amended by inserting the following subsections after subsection (2):

“(3) If an appeal is brought against an assessment or an amended assessment made on a taxable person for a taxable period, the person shall specify in the notice of appeal—

(a) each amount or matter in the assessment or amended assessment with respect to which the person is aggrieved, and

(b) the grounds in detail of the person’s appeal in relation to each such amount or matter.

(4) The taxable person is not entitled to rely on any ground of appeal that is not specified in the notice of appeal unless the Appeal Commissioners are, or in the case of a rehearing of the appeal, the judge of the Circuit Court is, satisfied that the ground could not reasonably have been stated in that notice.”.

Amendment of section 30 of the Principal Act (time limits).

17. Section 30 of the Principal Act is amended as follows:

(a) in subsection (1), by substituting “Subject to section 27A(10)” for “Subject to subsection (3) and sections 26(4) and 27(6)”;

(b) in subsection (4), by substituting the following paragraph for paragraph (a):

“(a) An estimation or assessment of tax under section 22 or 23 may be made at any time not later than 4 years—

(i) after the end of the taxable period to which the estimate or assessment relates, or

(ii) if the period for which the estimate or assessment is made consists of 2 or more taxable periods, after the end of the earlier or earliest taxable period within that period.”.

Amendment of section 32 of the Principal Act (regulations).

18. Section 32 of the Principal Act is amended as follows:

(a) in subsection (1), by inserting the following paragraph after paragraph (ag):

“(aga) the conditions under which paragraph 1(1) of Schedule 2 is applicable to a supply of goods;”;

(b) in subsection (1), by repealing paragraphs (r), (v) and (y); and

(c) in subsection (1)(xxxx), by substituting “section 10(3A).” for “section 10(3A);”.

Repeal of section 34 of the Principal Act (relief for stock-in-trade held on the specified day).

19. Section 34 of the Principal Act is repealed.

Amendment of section 35 of the Principal Act (special provisions for adjustment and recovery of consideration).

20. Section 35 of the Principal Act is amended as follows:

(a) by repealing subsection (1);

(b) by substituting the following subsection for subsection (3):

“(3) If, in relation to a supply of agricultural produce or an agricultural service by a flat-rate farmer, the farmer issues an invoice in which the flat-rate addition is stated separately, that addition is recoverable by the farmer as part of the consideration for the transaction.”.