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Value-Added Tax Consolidation Act 2010

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Number 31 of 2010


VALUE-ADDED TAX CONSOLIDATION ACT 2010


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.

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.

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.

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

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

87. Margin scheme — taxable dealers.

88. Margin scheme — travel agents.

89. Margin scheme — auctioneers.

90. Investment gold.

91. Electronic services scheme.

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.

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.

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

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Number 31 of 2010


VALUE-ADDED TAX CONSOLIDATION ACT 2010


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

[23rd November, 2010]

BE IT ENACTED BY THE OIREACHTAS AS FOLLOWS:

PART 1

Preliminary and General

Short title.

[VATA s. 44]

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

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);

“Appeal Commissioners” means persons appointed, in accordance with section 850 of the Taxes Consolidation Act 1997 , to be Appeal Commissioners for the purposes of the Income Tax Acts;

“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;

“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

(b) a supply of any goods or services of a kind specified in Schedule 1 or declared by the Minister by order for the time being in force under section 52 to be an exempted activity;

“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 ;

“livestock” means live cattle, horses, sheep, goats, pigs and deer;

“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”, 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 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, 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.

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

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 Article 295(1) and Annex VII of the VAT Directive (the text of which Annex is contained in Part 1 of Schedule 4 );

“Annex VIII service” means any service of a description specified in Article 295(1) and 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.

Chapter 2

General rules

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 sections 9 , 10 , 12 , 13 , 15 , 17 (1) and 94 (3) 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 section 13 or 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.

Persons not accountable persons unless they so elect.

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

6.—(1) Subject to subsections (2) and (3) and sections 9 , 10 , 12 , 13 , 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 section 12 (3) or (5), 13 or 17 (1).

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

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.

Cancellation of election.

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

8.—(1) 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 of such a sum as a condition of cancellation as when added to the net total amount of tax (if any) paid by that 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 the person in the period for which the election had effect is equal to the sum of the amount of tax repaid to him or her during that period in respect of tax borne or paid in relation to the supply of goods and services (other than services of the kind referred to in paragraph 11 of Schedule 3 ) and the tax deductible under Chapter 1 of Part 8 in respect of intra-Community acquisitions made by that person during that 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—

A × (10 — B)

10

where—

A 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

B 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.

Chapter 3

Rules for intra-Community acquisitions

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 sections 12 (3) and (5), 13 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 section 12 , 13 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 section 12 , 13 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.

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, 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.

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 Chapter II of Part II of the Finance Act 1992 , 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 .

Chapter 4

Services supplied in the State by persons established outside the State

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 (other than a service of a kind referred to in section 33 (2)(b) 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 section 13 or 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 section 13 or 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 section 13 or 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 section 13 or 17 (1) which are received by him or her.

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

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

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

13.— Where a person not established in the State supplies a cultural, artistic, entertainment or similar service in the State, then any person (other than a person acting in a private capacity) who receives that service shall—

(a) in relation to it, be an accountable person or be deemed to be an accountable person, and

(b) be liable to pay the tax chargeable as if that accountable person had in fact supplied the service for consideration in the course or furtherance of business,

but, where that service is commissioned or procured by a promoter, agent or other person not being a person acting in a private capacity, then that promoter, agent or person shall be deemed to be the person who receives the service.

Chapter 5

Supplementary provisions

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.

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 , 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.

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 section 531 (1) of the Taxes Consolidation Act 1997 applies (other than a principal to whom subparagraphs (ii) or (iii) of section 531 (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.

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 7 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.

(c) Where a premises provider allows, in the course of furtherance of business, a promoter not established in the State to supply on the premises provider’s land a cultural, artistic, entertainment or similar service which in accordance with section 13 is deemed to be supplied by that promoter, then that premises provider shall, not later than 14 days before such service is 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 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 section 12 or 13 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.

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 section 52 and paragraph 3(4) 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 section 46 (1)(c) 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.

PART 3

Taxable Transactions

Chapter 1

Supply of goods

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 subparagraph (i)(e) of the First Schedule 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) the handing over by a person (in this paragraph referred to as the “developer”) to another person of immovable goods which have been developed from goods entrusted to the developer by that other person for the purpose of such development, whether or not the developer has supplied any part of the goods used,

(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) 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, 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.

(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.

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.

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.

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 and section 20 (3) 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).

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

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 in accordance with section 86 (1), 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.

Chapter 3

Supply of services

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.

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 section 9 , 10 , 12 , 13 , 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.

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) 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.

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.

PART 4

Place of Taxable Transactions

Chapter 1

Place of supply of goods

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.

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), subsection (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.

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, 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, 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, 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.

Chapter 2

Place of intra-Community transactions

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

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, 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.

(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);

(h) services that consist of providing access to, or transmission through, natural gas and electricity distribution systems, and providing other services directly linked to those systems;

(i) telecommunications services;

(j) radio and television broadcasting services;

(k) electronically supplied services.

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;

(g) if the supply of services, and of any ancillary services, is connected with cultural, artistic, sporting, scientific, educational, entertainment or similar activities (including fairs and exhibitions and the supply of services of the organisers of such activities), the place where those activities are physically carried out;

(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;

(l) if—

(i) the supply of services is the provision of electronically supplied services that are supplied to a non-taxable person—

(I) who is established in the State,

(II) whose permanent address is within the State, or

(III) who usually resides in the State,

and

(ii) those services are supplied by a taxable person—

(I) whose business is established outside the Community,

(II) who has a fixed establishment outside the Community from which the services are supplied, or

(III) if the person does not have such a place of business or fixed establishment, whose permanent address or usual place of residence is outside the Community,

the State;

(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 where the transaction underlying the supply is made.

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

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.

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) 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 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.

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.

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.

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.

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) applies.

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 section 12 , 13 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.

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, to a 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

(b) a person who acquires that coupon, stamp, telephone card, token or voucher whether from the supplier referred to in paragraph (a) or from any other 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.

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

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

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) 21 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 paragraphs (b), (c) 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) 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 ;

(d) 4.8 per cent of the amount on which tax is chargeable in relation to the supply of livestock and live greyhounds and to the hire of horses.

(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.

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.

Works of art, etc.

[VATA s. 11(1AA)]

48.—(1) Notwithstanding section 46 (1), tax shall be charged at the rate specified in section 46 (1)(c) 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 section 46 (1)(c) 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 section 46 (1)(c) in accordance with subsection (1)(b) or (c) if that supply had occurred within the State.

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 paragraph (xvi) of the Second Schedule.

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 section 46 (1)(c).

(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.

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.

(6) A person, aggrieved by a determination under subsection (1) made pursuant to an application by him or her, may, on giving notice in writing to the Revenue Commissioners within the period of 21 days beginning on the date of service on him or her of notice of the determination in accordance with subsection (5)(a), appeal to the Appeal Commissioners.

(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 under subsection (1) or (2), may, on giving notice in writing to the Revenue Commissioners within the period of 21 days beginning on the date of the publication of the determination in Iris Oifigiúil, appeal to the Appeal Commissioners.

Chapter 2

Exemptions

General rule on exempted activity.

[VATA s. 6]

52.—(1) Tax shall not be chargeable in respect of any exempted activity.

(2)(a) The Minister may by order declare the supply of goods or services of any kind to be an exempted activity.

(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.

PART 7

Provisions Relating to Imports, Exports, etc.

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 Customs Consolidation Act 1876, and other law in force in the State relating to customs, 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.

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.

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 Romania;

“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 Romania, or

(d) the tax due by reason of the importation does not exceed €130.

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 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.

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.

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.

PART 8

Deductions

Chapter 1

General provisions

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,

(c) the operation, in accordance with Commission Regulation (EC) No. 2777/2000 of 18 December 2000 5 , of the Cattle Testing or Purchase for Destruction Scheme, by a body who is an accountable person by virtue of the Value-Added Tax (Agricultural Intervention Agency) Order 2001 ( S.I. No. 11 of 2001 ),

(d) services specified in paragraph 6, 7 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 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, 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 section 12 , 13 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,

(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 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,

(m) 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 specified in section 20 (2)(c),

(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.

(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 .

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,

(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.

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;

“non-deductible supplies or activities” means the supply of goods or services or the carrying out of activities other than deductible supplies or activities;

“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”.

(4) For the purposes of this section and regulations, the proportion of tax deductible by an accountable person for a period shall be calculated on any basis which results in a proportion of tax deductible which—

(a) correctly reflects the extent to which the dual-use inputs are used for the purposes of the person’s deductible supplies or activities, and

(b) has due regard to the range of the person’s total supplies and activities.

(5) The proportion of tax deductible may be calculated on the basis of the ratio which the amount of a person’s tax-exclusive turnover from deductible supplies or activities for a period bears to the amount of the person’s tax-exclusive turnover from total supplies and activities for that period but only where that basis results in a proportion of tax deductible which is in accordance with subsection (4).

(6) Where it is necessary to do so to ensure that the proportion of tax deductible by an accountable person is in accordance with subsection (4), 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.

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.

Chapter 2

Capital goods scheme

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,

(b) in the case of a taxable person who is a flat-rate farmer, a taxable person who incurs expenditure to develop or acquire a capital good other than a building or structure designed and used solely for the purposes of a farming business or for fencing, drainage or reclamation of land, and which has actually been put to use in such business;

“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).

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) 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 .

(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—

(i) a connected supply occurs and the seller enters into a written agreement with the purchaser to the effect that that 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 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 that purchaser, and

(II) any adjustments required to be made under this Chapter by that purchaser were made,

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.

(c) Where paragraph (b) applies, 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.

(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.

(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.

PART 9

Obligations of Accountable Persons

Chapter 1

Registration

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 dispose of goods which pursuant to section 22 (3) 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).

(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) Every person who disposes of goods which pursuant to section 22 (3) are deemed to be supplied by an accountable person in the course or furtherance of his or her business shall, within 14 days of the disposal, furnish in writing to the Revenue Commissioners the particulars specified in regulations as being required for the purpose of registering the person for tax.

Chapter 2

Invoicing

Issue of invoices and other documents.

[VATA s. 17(1), (1A) and (1C) to (1E)]

66.—(1) An accountable person—

(a) who supplies goods or services—

(i) to another accountable person,

(ii) to a public body,

(iii) to a person who carries on an exempted activity,

(iv) to a person (other than an individual) in another Member State of the Community in such circumstances that tax is chargeable at any of the rates specified in section 46 (1), or

(v) to a person in another Member State who is liable to pay value-added tax pursuant to the VAT Directive on such supply,

or

(b) who supplies goods to a person in another Member State of the Community 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 such form and containing such particulars as may be specified by regulations.

(2)(a) Subject to paragraph (b), an invoice or other document required to be issued by a person under this Chapter shall be deemed to be so issued by the person if the particulars which are required by regulations to be contained in that invoice or other document are recorded, retained and transmitted electronically by a system (or systems) which ensures (or ensure) the integrity of those particulars and the authenticity of their origin, without the issue of any invoice or other document containing those particulars.

(b) An invoice or other document required to be issued under this Chapter shall not be deemed by paragraph (a) to be so issued unless the person who is required to issue that invoice or other document—

(i) complies with such conditions as are specified by regulations, and

(ii) the system (or systems) used by that person conforms (or conform) with such specifications as are required by regulations.

(c) The person who receives a transmission referred to in paragraph (a) shall not be deemed to be issued with an invoice or other document required to be issued under this Chapter unless—

(i) the particulars that are required by regulations to be contained in that invoice or other document are received electronically in a system that ensures the integrity of those particulars and the authenticity of their origin,

(ii) that system conforms with such specifications as are required by regulations, and

(iii) that person complies with such conditions as are specified by regulations.

(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 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 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.

(5)(a) In this subsection—

“travel agent” and “margin scheme services” have the meanings respectively assigned to them by section 88 (1);

“qualifying accommodation” and “qualifying conference” have the meanings respectively assigned to them by section 60 (1).

(b) Where a travel agent supplies margin scheme services that include qualifying accommodation in connection with the attendance by a traveller at a qualifying conference, the travel agent shall issue a document to the traveller containing particulars of the amount of tax chargeable by the accommodation provider in respect of the supply of the qualifying accommodation to that traveller.

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.

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.

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.

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.

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.

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.

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

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 , or the relevant part thereof, 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.

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.

Returns and remittances.

[VATA s. 19(3)(a) and (b) to (d)]

76.—(1) Subject to subsection (2), 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) A person who disposes of goods which pursuant to section 22 (3) 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—

(i) furnish to the Collector-General—

(I) a true and correct return, prepared in accordance with regulations, of the amount of tax which became due by the accountable person in relation to the disposal, and

(II) 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, the amount of tax payable in respect of that taxable period,

(b) send to the person whose goods were disposed of 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 out of the proceeds of the disposal.

(3) The owner of goods which pursuant to section 22 (3) 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 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.

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.

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.

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 , where section 91 applies, the tax shall be payable at the time the VAT return is required to be submitted in accordance with section 91 (6).

Chapter 4

Tax due on moneys received

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 €1,000,000 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).

Chapter 5

Expression of doubt

Letter of expression of doubt.

[VATA s. 19B]

81.—(1) For the purposes of this section—

“accountable person” includes a person who is not a registered person and is in doubt as to whether he or she is an accountable person in respect of a transaction and, in that case, references to a return and records are to be construed as referring to a return that would be due under Chapter 3 and records that would be kept for the purposes of Chapter 7 or section 124 (7), if that person were in fact an accountable person;

“the law” has the meaning assigned to it by subsection (2);

“letter of expression of doubt” means a communication received in legible form which—

(a) sets out full details of the circumstances of the transaction and makes reference to the provisions of the law giving rise to the doubt,

(b) identifies the amount of tax in doubt in respect of the taxable period to which the expression of doubt relates,

(c) is accompanied by supporting documentation as relevant, and

(d) is clearly identified as a letter of expression of doubt for the purposes of this section,

and reference to “an expression of doubt” shall be construed accordingly.

(2)(a) Subject to paragraph (b), where an accountable person is in doubt as to the correct application of any enactment relating to value-added tax (in this section referred to as “the law”) to a transaction which could—

(i) give rise to a liability to tax by that person, or

(ii) affect that person’s liability to tax or entitlement to a deduction or refund of tax,

then the accountable person may, at the same time as the accountable person furnishes to the Collector-General the return due in accordance with Chapter 3 for the period in which the transaction occurred, lodge a letter of expression of doubt with the Revenue Commissioners at the office of the Commissioners which would normally deal with the examination of the records kept by that person in accordance with Chapter 7 or section 124 (7).

(b) This section shall apply only if the return referred to in paragraph (a) is furnished within the time limits prescribed in Chapter 3 .

(3) A person whose expression of doubt concerns whether he or she is an accountable person shall lodge that expression of doubt for the purposes of applying subsection (4) not later than the 19th day of the month following the taxable period in which the transaction giving rise to the expression of doubt occurred.

(4) Subject to subsection (5), where a return and a letter of expression of doubt relating to a transaction are furnished by an accountable person to the Revenue Commissioners in accordance with this section, section 114 shall not apply to any additional liability arising from a notification to that person by the Revenue Commissioners of the correct application of the law to that transaction, on condition that such additional liability is accounted for and remitted to the Collector-General by the accountable person as if it were tax due for the taxable period in which the notification is issued.

(5) Subsection (4) does not apply where the Revenue Commissioners do not accept as genuine an expression of doubt in respect of the application of the law to a transaction, and an expression of doubt shall not be accepted as genuine in particular where the Commissioners—

(a) have issued general guidelines concerning the application of the law in similar circumstances,

(b) are of the opinion that the matter is otherwise sufficiently free from doubt as not to warrant an expression of doubt, or

(c) are of the opinion that the accountable person was acting with a view to the evasion or avoidance of tax.

(6) Where the Revenue Commissioners do not accept an expression of doubt as genuine, they shall notify the accountable person accordingly, and the accountable person shall account for any tax, which was not correctly accounted for in the return referred to in subsection (2), as tax due for the taxable period in which the transaction occurred, and section 114 shall apply accordingly.

(7) An accountable person who is aggrieved by a decision of the Revenue Commissioners that the person’s expression of doubt is not genuine may, by giving notice in writing to the Revenue Commissioners within the period of 21 days after the notification of the decision, require the matter to be referred to the Appeal Commissioners.

(8) A letter of expression of doubt shall be deemed not to have been made unless its receipt is acknowledged by the Revenue Commissioners and that acknowledgement forms part of the records kept by the accountable person for the purposes of Chapter 7 or section 124 (7).

Chapter 6

Recapitulative statements

Statement of intra-Community supplies of goods.

[VATA s. 19A]

82.—(1) In this section—

“intra-Community supplies of goods” means supplies of goods to a person registered for value-added tax in another Member State;

“prescribed threshold” means—

(a) subject to paragraph (b), €100,000,

(b) on and from 1 January 2012, €50,000.

(2) An accountable person shall, not later than the deadline fixed by this section, lodge with the Revenue Commissioners a statement—

(a) of the person’s intra-Community supplies of goods,

(b) prepared in accordance with, and containing such particulars as may be specified in, regulations (if any).

(3)(a) Subject to paragraph (b), in the case of intra-Community supplies of goods made during a calendar month, the deadline referred to in subsection (2) is the 23rd day of the month immediately following the end of that calendar month.

(b) This subsection does not apply to intra-Community supplies of goods—

(i) in respect of which an authorisation has been given under subsection (4), or

(ii) when an accountable person elects to lodge statements as permitted by subsection (5).

(4) The Revenue Commissioners may, on written request, authorise an accountable person who makes no supplies of the kind referred to in section 83 but who makes intra-Community supplies of goods that do not exceed, or are not likely to exceed, in a calendar year, an amount or amounts specified in regulations (if any), to lodge by 23 January following that calendar year a statement—

(a) setting out details of those intra-Community supplies of goods,

(b) prepared in accordance with, and containing such particulars as may be specified in, regulations (if any).

(5)(a) Subject to paragraph (b), if, when subsection (4) does not apply, the total value of an accountable person’s intra-Community supplies of goods for a period of a calendar quarter, or of any of the previous 4 calendar quarters, does not exceed the prescribed threshold, the person may lodge a statement setting out details of those supplies not later than the 23rd day of the month immediately following the quarter during which the supplies were made.

(b) Where the value of the supplies referred to in paragraph (a) exceeds the prescribed threshold in any month, the deadline for lodging a statement in respect of those supplies is as provided by subsection (3).

(6) An accountable person who has made no intra-Community supplies of goods during a relevant period, but was required to lodge with the Revenue Commissioners a statement in respect of a previous period, shall, unless otherwise authorised by the Commissioners, lodge with them before the relevant deadline a statement to the effect that he or she made no such supplies during that period.

Statement of intra-Community supplies of taxable services.

[VATA s. 19AA]

83.—(1) In this section “intra-Community supplies of services” means supplies of services to a taxable person in another Member State or any other person registered for value-added tax in another Member State.

(2) An accountable person shall, not later than the deadline fixed by this section, lodge with the Revenue Commissioners a statement—

(a) of the person’s intra-Community supplies of services where the recipient is liable to pay the tax as provided by Article 196 of the VAT Directive,

(b) prepared in accordance with, and containing such particulars as may be specified in, regulations (if any).

(3) In the case of intra-Community supplies of services made during a calendar quarter, the deadline referred to in subsection (2) is the 23rd day of the month immediately following the end of that quarter, except where the accountable person elects to lodge statements monthly as provided by subsection (4).

(4) An accountable person who makes intra-Community supplies of services may elect to lodge statements of details of those services monthly, in which case the deadline for lodging those statements is not later than the 23rd day of each calendar month immediately following the month in which the supplies are made.

(5) For the purposes of statements to be lodged in accordance with subsection (2), services that are supplied continuously over a period of more than one year, in respect of which no statements of account or payments are made during that year, are to be regarded as being completed at the end of each calendar year until the date when the supply is finally completed.

(6) An accountable person who has made no intra-Community supplies of services to which this section applies during a relevant period, but who was required to lodge with the Revenue Commissioners a statement in respect of a previous period, shall, unless otherwise authorised by the Commissioners, lodge with them before the relevant deadline a statement to the effect that he or she made no such supplies during that period.

Chapter 7

Record keeping

Duty to keep records.

[VATA s. 16(1), (2), (3) and (4)]

84.—(1) Every accountable person shall, in accordance with regulations, keep full and true records of all transactions which affect or may affect his or her liability to tax and entitlement to deductibility.

(2) Every person (other than an accountable person) who supplies goods or services in the course or furtherance of business shall keep all invoices issued to him or her in connection with the supply of goods or services to him or her for the purpose of such business.

(3) The following:

(a) records kept by a person pursuant to this Chapter or section 124 (7) and that are in the power, possession or procurement of the person;

(b) any books, invoices, copies of customs entries, credit notes, debit notes, receipts, accounts, vouchers, bank statements or other documents whatsoever which relate to the supply of goods or services, the intra-Community acquisition of goods, or the importation of goods by the person and that are in the power, possession or procurement of the person; and

(c) in the case of any such book, invoice, credit note, debit note, receipt, account, voucher, or other document, which has been issued by the person to another person, any copy thereof which is in the power, possession or procurement of the person,

shall, subject to subsection (4), be retained in that person’s power, possession or procurement for a period of 6 years from the date of the latest transaction to which the records, invoices, or any of the other documents, relate.

(4) Notwithstanding the retention period specified in subsection (3), the following retention periods shall apply:

(a) where a person acquired or developed immovable goods to which section 4 of the repealed enactment applied, the period for which the person shall retain records pursuant to this Chapter in relation to that person’s acquisition or development of those immovable goods shall be the duration that such person holds a taxable interest in such goods plus a further period of 6 years;

(b) where a person exercised a waiver of exemption from tax in accordance with section 7 of the repealed enactment, the period for which the person shall retain records pursuant to this Chapter shall be the duration of the waiver plus a further period of 6 years.

(5) This Chapter—

(a) shall not require the retention of records or invoices or any of the other documents in respect of which the Revenue Commissioners notify the person concerned that retention is not required, and

(b) shall not apply to the books and papers of a company which have been disposed of in accordance with section 305 (1) of the Companies Act 1963 .

Supplementary provisions on records.

[VATA s. 16(1A), (2A) and (5)]

85.—(1) The requirement to keep records in accordance with this Chapter applies to—

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

(b) a capital good record referred to in Chapter 2 of Part 8 ,

(c) a record relating to a joint option for taxation, and

(d) the document relating to an assignment or surrender referred to in section 95 (9)(a).

(2)(a) An accountable person who claims a deduction of tax pursuant to Chapter 1 of Part 8 in respect of qualifying accommodation within the meaning of section 60 (1) shall retain full and true records in relation to the attendance by the delegate at the relevant qualifying conference (including the details referred to in section 60 (1) issued to the accountable person by the person responsible for organising the conference).

(b) A person responsible for organising a qualifying conference within the meaning of section 60 (1) and to which section 60 (2)(a)(i) relates shall keep full and true records of each such conference organised by the person.

(3) Every person who trades in investment gold (within the meaning of section 90 ) shall, in accordance with regulations, keep full and true records of that person’s transactions in investment gold.

PART 10

Special Schemes

Special provisions for tax invoiced by flat-rate farmers.

[VATA ss. 12A and 35(3)]

86.—(1) Where a flat-rate farmer supplies agricultural produce or an agricultural service to a person, the farmer shall, subject to section 68 (1), issue to the person an invoice indicating the consideration (exclusive of the flat-rate addition) in respect of the supply and an amount (in this Act referred to as a “flat-rate addition”) equal to 5.2 per cent of that consideration (exclusive of the flat-rate addition).

(2) Where, 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.

Margin scheme — taxable dealers.

[VATA s. 10A, s. 12B(3) (in part) and s. 12C(5) (in part)]

87.—(1) In this section—

“agricultural machinery” means machinery or equipment (other than a motor vehicle within the meaning of section 60 (1)) which has been used by a flat-rate farmer for the purpose of that farmer’s Annex VII activity in circumstances where any tax charged on the supply of that machinery or equipment to the farmer would have been deductible by him or her if he or she had elected to be an accountable person at the time of that supply of the machinery or equipment to the farmer;

“antiques” means any of the goods specified in paragraph 24 of Schedule 3 or in paragraph 3 of Schedule 5 ;

“collectors’ items” means any of the goods specified in paragraph 2 of Schedule 5 ;

“margin scheme” means the special arrangements for the taxation of supplies of margin scheme goods;

“margin scheme goods” means any works of art, collectors’ items, antiques or second-hand goods supplied within the Community to a taxable dealer—

(a) by a person (other than a person referred to in paragraph (c)) who was not entitled to deduct, under Chapter 1 of Part 8 , any tax in respect of the person’s purchase, intra-Community acquisition or importation of those goods where that person is neither—

(i) an accountable person who acquired those goods from a taxable dealer who applied the margin scheme to the supply of those goods to that accountable person, nor

(ii) an accountable person who acquired those goods from an auctioneer (within the meaning of section 89 ) who applied the auction scheme (within the meaning of section 89 ) to the supply of those goods to that accountable person,

(b) by a person in another Member State who was not entitled to deduct, under the provisions implementing Articles 167, 173, 176 and 177 of the VAT Directive, in that Member State, any value-added tax referred to in that Directive in respect of that person’s purchase, intra-Community acquisition or importation of those goods, or

(c) by another taxable dealer who has applied the margin scheme to the supply of those goods or applied the provisions implementing Articles 4 and 35, first subparagraph of Article 139(3) and Articles 311 to 325 and 333 to 340 of the VAT Directive, in another Member State to the supply of those goods,

and also includes goods acquired by a taxable dealer as a result of a disposal of goods by a person to the taxable dealer where that disposal was deemed not to be a supply of goods in accordance withsection 20 (3);

“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, which are intended for the transport of persons or goods, other than agricultural machinery, and vessels and aircraft of the kind referred to in paragraph 4(2) of Schedule 2 ;

“precious metals” means silver (including silver plated with gold or platinum), gold (including gold plated with platinum), and platinum, and all items which contain any of those metals when the consideration for the supply does not exceed the open market price (within the meaning of section 36 ) of the metal concerned;

“precious stones” means diamonds, rubies, sapphires and emeralds, whether cut or uncut, when they are not mounted, set or strung;

“profit margin” means the profit margin in respect of a supply by a taxable dealer of margin scheme goods and—

(a) subject to paragraph (b)—

(i) shall be deemed to be inclusive of tax, and

(ii) shall be an amount which is equal to the difference between the taxable dealer’s selling price for those goods and the taxable dealer’s purchase price for those goods,

(b) shall be deemed to be nil in any case where the purchase price is greater than the selling price;

“purchase price”, in relation to an acquisition of margin scheme goods, means the total consideration, including all taxes, commissions, costs and charges whatsoever, payable by a taxable dealer to the person from whom that taxable dealer acquired those goods;

“second-hand goods” means any tangible movable goods which are suitable for further use either as they are or after repair, including means of transport and agricultural machinery, purchased or acquired on or after 1 January 2010, but not including works of art, collectors’ items, antiques, precious metals and precious stones;

“selling price” means the total consideration which a taxable dealer becomes entitled to receive in respect of or in relation to a supply of margin scheme goods, including all taxes, commissions, costs and charges whatsoever and value-added tax (if any) payable in respect of the supply;

“taxable dealer”—

(a) means an accountable person who in the course or furtherance of business, whether acting on the person’s own behalf, or on behalf of another person pursuant to a contract under which commission is payable on purchase or sale, purchases or acquires or applies for the purpose of his or her business margin scheme goods or the goods referred to in subsection (4)(a)(ii) and (iii), with a view to resale, or imports the goods referred to in subsection (4)(a)(i), with a view to resale, and

(b) includes a person supplying financial services of the kind specified in paragraph 6(1)(e) of Schedule 1 who acquires or purchases margin scheme goods for the purpose of the supply thereof as part of an agreement of the kind referred to in section 19 (1)(c),

and, for the purposes of this interpretation, a person in another Member State shall be deemed to be a taxable dealer where, in similar circumstances, that person would be a taxable dealer in the State under this section;

“works of art” means any of the goods specified in paragraph 18(2) or 23 of Schedule 3 or in paragraph 1 of Schedule 5 .

(2) Subject to and in accordance with this section, a taxable dealer may apply the margin scheme to a supply of margin scheme goods.

(3) Where the margin scheme is applied to a supply of goods, the amount on which tax is chargeable on the supply in accordance with section 3 (a) or (c) is, notwithstanding Chapter 1 of Part 5 , the profit margin less the amount of tax included in the profit margin.

(4)(a) Subject to paragraph (b) and to such conditions (if any) as may be specified in regulations, a taxable dealer may, notwithstanding subsection (2), opt to apply the margin scheme to all that dealer’s supplies of any of the following as if they were margin scheme goods:

(i) a work of art, collector’s item or antique which the taxable dealer imported;

(ii) a work of art which has been supplied to the taxable dealer by its creator or the creator’s successors in title; or

(iii) a work of art which has been supplied to the taxable dealer by an accountable person other than a taxable dealer, where the supply to that dealer is of the kind referred to in section 48 (1)(c).

(b) Where a taxable dealer opts to apply the margin scheme in accordance with paragraph (a), the option shall be for a period of not less than 2 years from the date when that option was exercised.

(5) Where a taxable dealer exercises the option in accordance with subsection (4), in respect of the goods specified in subsection (4)(a)(i), then, notwithstanding the definition of “purchase price” in subsection (1), the purchase price for the purposes of determining the profit margin in relation to a supply of those goods shall be an amount equal to the value of those goods for the purposes of importation determined in accordance with section 53 increased by the amount of any tax payable in respect of the importation of those goods.

(6) Subject to subsection (7) and notwithstanding Chapter 1 of Part 8 , a taxable dealer who exercises the option in respect of the supply of the goods specified in subsection (4)(a) shall not be entitled to deduct any tax in respect of the purchase or importation of those goods.

(7) Where a taxable dealer exercises the option in accordance with subsection (4), the dealer may, notwithstanding subsection (4)(b), in respect of any individual supply of the goods specified in subsection (4)(a), opt not to apply the margin scheme to that supply, and in such case the right to deduction of the tax charged on the purchase, intra-Community acquisition or importation of those goods shall, notwithstanding Chapter 1 of Part 8 , arise only in the taxable period in which the dealer supplies those goods.

(8)(a) In this subsection—

“aggregate margin”, in respect of a taxable period—

(i) subject to paragraph (ii), means an amount which is equal to the difference between the taxable dealer’s total turnover in that taxable period from supplies of low value margin scheme goods, to which the same rate of tax applies, less the sum of that taxable dealer’s purchase prices of low value margin scheme goods to which that rate of tax applies to the supply thereof, in that taxable period,

(ii) in any case where the sum of such purchase prices of that dealer is in excess of such total turnover, means an amount which shall be deemed to be nil (and, in any such case, subject to and in accordance with regulations (if any), the amount of the excess shall be carried forward and added to the sum of that dealer’s purchase prices for low value margin scheme goods for the purposes of calculating that dealer’s aggregate margin for the immediately following taxable period);

“low value margin scheme goods” means margin scheme goods where the purchase price payable by the dealer for each individual item is less than €635.

(b) Notwithstanding subsection (3) but subject to and in accordance with regulations (if any)—

(i) where a taxable dealer acquires low value margin scheme goods in job lots or otherwise, the amount of tax due and payable in respect of the dealer’s supplies of low value margin scheme goods shall, in respect of a taxable period, be the amount of tax included in that dealer’s aggregate margin, or margins, for that period and the amount of tax in each aggregate margin shall be determined by the formula—

B

A × B + 100

where—

A is the aggregate margin for the taxable period in question, and

B is the percentage rate of tax chargeable in relation to the supply of those goods,

and

(ii) where the taxable dealer referred to in subparagraph (i) makes supplies in any taxable period which are subject to different rates of tax, that taxable dealer shall calculate separate aggregate margins for that taxable period in respect of the supplies at each of the relevant rates.

(c) Subject to and in accordance with regulations (if any), where a taxable dealer supplies a low value margin scheme good for an amount in excess of €635, then—

(i) notwithstanding the definition of “low value margin scheme goods” in paragraph (a), the supply of that good shall be deemed not to be a supply of a low value margin scheme good,

(ii) in determining the aggregate margin for the taxable period in which the supply occurs, the dealer shall deduct the purchase price of that good from the sum of the dealer’s purchase prices of low value margin scheme goods for that period, and

(iii) the purchase price of that good shall be used in determining the profit margin in relation to the supply of that good.

(9) Notwithstanding Chapter 2 of Part 9 , a taxable dealer shall not, in relation to any supply to which the margin scheme has been applied, indicate separately the amount of tax chargeable in respect of the supply on any invoice or other document in lieu thereof issued in accordance with that Chapter.

(10) Where the margin scheme is applied to a supply of goods dispatched or transported from the State to a person registered for value-added tax in another Member State, then, notwithstanding paragraph 1(1) of Schedule 2 , section 46 (1)(b) shall not apply unless such goods are of a kind specified elsewhere in that Schedule.

(11) Notwithstanding section 30 , where the margin scheme is applied to a supply of goods dispatched or transported, the place of supply of those goods shall be deemed to be the place where the dispatch or transportation begins.

(12) Where a taxable dealer applies the margin scheme to a supply of goods on behalf of another person pursuant to a contract under which commission is payable on purchase or sale, the goods shall be deemed to have been supplied by that other person to the taxable dealer when that taxable dealer supplies those goods.

(13) Notwithstanding paragraph 12 of Schedule 1 , where an accountable person acquires goods to which the margin scheme has been applied and the person subsequently supplies those goods, that paragraph shall not apply to that supply unless the goods consist of—

(a) motor vehicles within the meaning of section 60 (1) which that person acquired other than—

(i) as stock-in-trade,

(ii) for the purposes of a business which consists in whole or in part of the hiring of motor vehicles, or

(iii) for use, in a driving school business, for giving driving instruction,

or

(b) goods used by that person solely in the course of an exempted activity.

(14)(a) Where a means of transport which is a motor vehicle within the meaning of section 60 (1) is declared for registration to the Revenue Commissioners in accordance with section 131 of the Finance Act 1992 by a taxable dealer on the dealer’s own behalf and on which deductibility in accordance with Chapter 1 of Part 8 has been claimed by that dealer, then—

(i) that means of transport shall be treated for the purposes of this Act as if it were removed from stock-in-trade,

(ii) such removal is deemed to be a supply of that means of transport by that taxable dealer for the purposes of section 19 (1)(f), and

(iii) for the avoidance of doubt, the amount of tax chargeable in respect of that supply is the amount referred to in paragraph (b)(ii)(II) and accordingly is not included in any amount which the taxable dealer is entitled to deduct in accordance with section 59 (2)(k).

(b) At the time when a taxable dealer supplies to another person a means of transport which is deemed to have been previously supplied in accordance with paragraph (a) or section 12B(11)(a) of the repealed enactment then—

(i) that means of transport is deemed to have been re-acquired by the dealer as a margin scheme good immediately before the supply to that person, and

(ii) for the purpose of the calculation of the profit margin in relation to that supply, the purchase price of the means of transport is deemed to be the sum of—

(I) the amount on which tax was chargeable on the supply of that means of transport to the dealer,

(II) the tax which was chargeable on the supply referred to at clause (I), and

(III) the vehicle registration tax accounted for by the dealer in respect of the registration of that means of transport.

Margin scheme — travel agents.

[VATA s. 10C]

88.—(1) In this section—

“bought-in services” means goods or services which a travel agent purchases for the direct benefit of a traveller—

(a) from another taxable person, or

(b) from a person engaged in business outside the State;

“margin scheme services” means bought-in services supplied by a travel agent to a traveller;

“travel agent” means a taxable person who acts as a principal in the supply to a traveller of margin scheme services, and for the purposes of this section travel agent includes tour operator;

“travel agent’s margin”, in relation to a supply of margin scheme services, means an amount which is calculated in accordance with the formula—

A — B

where—

A is the total consideration which the travel agent becomes entitled to receive in respect of or in relation to that supply of margin scheme services, including all taxes, commissions, costs and charges whatsoever and value-added tax payable in respect of that supply, and

B is the amount payable by the travel agent to a supplier in respect of bought-in services included in that supply of margin scheme services to the traveller, but any bought-in services purchased by the travel agent prior to 1 January 2010 in respect of which that travel agent claims deductibility in accordance with Chapter 1 of Part 8 shall be disregarded in calculating the margin,

and if that B is greater than that A, then the travel agent’s margin in respect of that supply shall be deemed to be nil;

“travel agent’s margin scheme” means the special arrangements for the taxation of margin scheme services.

(2) A supply of margin scheme services by a travel agent to a traveller in respect of a journey shall be treated as a single supply.

(3) The place of supply of margin scheme services is—

(a) unless paragraph (b) applies, the place where a travel agent has established the travel agent’s business,

(b) if those services are provided from a fixed establishment of that travel agent located in a place other than the place where the travel agent has established his or her business, the place where that fixed establishment is located.

(4) The travel agent’s margin scheme shall apply to the supply of margin scheme services in the State.

(5) Notwithstanding Chapter 1 of Part 5 , the amount on which tax is chargeable by virtue of section 2(1)(a) on a supply of margin scheme services shall be the travel agent’s margin less the amount of tax included in that margin.

(6) Notwithstanding sections 57 , 58 , 102 and 104 (1), (4) and (5) and Chapter 1 of Part 8 , a travel agent shall not be entitled to a deduction or a refund of tax borne or paid in respect of bought-in services supplied by the travel agent as margin scheme services.

(7) Where a travel agent supplies margin scheme services together with other goods or services to a traveller for a total consideration, then—

(a) that total consideration shall be apportioned by the travel agent so as to correctly reflect the ratio which the value of those margin scheme services bears to that total consideration, and

(b) the proportion of that total consideration relating to the value of the margin scheme services shall be subject to the travel agent’s margin scheme.

(8) Margin scheme services shall be treated as intermediary services when the bought-in services are performed outside the Community.

(9) Where a travel agent makes a supply of margin scheme services that includes some services that are treated as intermediary services in accordance with subsection (8), then the total travel agent’s margin in respect of that supply shall be apportioned by the travel agent so as to correctly reflect the ratio which the cost to that travel agent of the bought-in services used in the margin scheme services that are treated as intermediary services in that supply bears to the total cost to that travel agent of all bought-in services used in making that supply of margin scheme services.

(10) A travel agent, being an accountable person who supplies margin scheme services, shall include the tax due on the person’s supplies of margin scheme services for a taxable period in the return that that person is required to furnish in accordance with section 76 or 77 .

(11) The Revenue Commissioners may make such regulations as they consider necessary for the purposes of the operation of this section, including provisions for simplified accounting arrangements.

Margin scheme — auctioneers.

[VATA s. 10B]

89.—(1) In this section—

“auctioneer” means an accountable person who, in the course or furtherance of business, acting on behalf of another person pursuant to a contract under which commission is payable on purchase or sale, offers tangible movable goods for sale by public auction with a view to handing them over to the highest bidder;

“auctioneer’s margin” means an amount which is equal to the difference between the total amount, including any taxes, commissions, costs and charges whatsoever, payable by the purchaser to the auctioneer in respect of the auction of auction scheme goods and the amount payable by the auctioneer to the principal in respect of the supply of those goods and shall be deemed to be inclusive of tax;

“auction scheme” means the special arrangements for the taxation of supplies of auction scheme goods;

“auction scheme goods” means any works of art, collectors’ items, antiques or second-hand goods sold by an auctioneer at a public auction while acting on behalf of a principal who is—

(a) a person who was not entitled to deduct, under Chapter 1 of Part 8 , any tax in respect of that person’s purchase, intra-Community acquisition or importation of those goods where that person is neither—

(i) a person referred to in paragraph (d), nor

(ii) an accountable person who acquired those goods from—

(I) an auctioneer who applied the auction scheme to the supply of those goods to that accountable person, or

(II) a taxable dealer who applied the margin scheme to the supply of those goods to that accountable person,

(b) an insurer to whom section 20 (3) 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 section 20 (3),

(c) a person in another Member State who was not entitled to deduct, under the provisions implementing Articles 167, 173, 176 and 177 of the VAT Directive, in that Member State, any value-added tax referred to in that Directive in respect of that person’s purchase, intra-Community acquisition or importation of those goods, or

(d) a taxable dealer who applied the margin scheme to the supply of those goods or applied the provisions implementing Articles 4 and 35, first subparagraph of Article 139(3) and Articles 311 to 325 and 333 to 340 of the VAT Directive, in another Member State to the supply of those goods;

“principal” means the person on whose behalf an auctioneer auctions goods;

“purchaser” means the person to whom an auctioneer supplies auction scheme goods.

(2) Subject to and in accordance with this section, an auctioneer shall apply the auction scheme to any supply of auction scheme goods.

(3) The amount on which tax is chargeable in accordance with section 3 (a) or (c) on a supply by an auctioneer of auction scheme goods is, notwithstanding Chapter 1 of Part 5 , the auctioneer’s margin less the amount of tax included in that margin.

(4) Where auction scheme goods are auctioned, the auctioneer shall issue, subject to such conditions (if any) as may be specified in regulations, to both the principal and the purchaser, invoices or documents in lieu thereof setting out the relevant details in respect of the supply of the auction scheme goods.

(5) Notwithstanding Chapter 2 of Part 9 , an auctioneer shall not, in relation to any supply to which the auction scheme has been applied, indicate separately the amount of tax chargeable in respect of the supply on any invoice or other document in lieu thereof issued in accordance with that Chapter.

(6) Where auction scheme goods are auctioned by an auctioneer on behalf of a principal who is an accountable person—

(a) the invoice or document in lieu thereof issued to the principal in accordance with subsection (4) shall be deemed to be an invoice for the purposes of Chapter 2 of Part 9 , and

(b) that principal shall be deemed to have issued such invoice.

(7) Where the auction scheme is applied to a supply of goods dispatched or transported from the State to a person registered for value-added tax in another Member State, then, notwithstanding paragraph 1(1) of Schedule 2 , section 46 (1)(b) shall not apply unless such goods are of a kind specified elsewhere in that Schedule.

(8) Notwithstanding section 30 , where the auction scheme is applied to a supply of goods dispatched or transported, the place of supply of those goods shall be deemed to be the place where the dispatch or transportation begins.

(9) Where an auctioneer supplies auction scheme goods by public auction, the principal shall be deemed to have made a supply of the auction scheme goods in question to the auctioneer when that auctioneer sells those goods at a public auction.

(10) Notwithstanding paragraph 12 of Schedule 1 , where an accountable person acquires goods to which the auction scheme has been applied and the person subsequently supplies those goods, that paragraph shall not apply to that supply unless the goods consist of—

(a) motor vehicles within the meaning of section 60 (1) which that person acquired other than—

(i) as stock-in-trade,

(ii) for the purposes of a business which consists in whole or in part of the hiring of motor vehicles, or

(iii) for use, in a driving school business, for giving driving instruction,

or

(b) goods used by that person solely in the course of an exempted activity.

Investment gold.

[VATA s. 6A]

90.—(1)(a) In this section—

“intermediary” means a person who intervenes for another person in a supply of investment gold while acting in the name and for the account of that other person;

“investment gold” means—

(i) gold in the form of—

(I) a bar, or

(II) a wafer,

of a weight accepted by a bullion market and of a purity equal to or greater than 995 parts per 1,000 parts, and

(ii) gold coins which—

(I) are of a purity equal to or greater than 900 parts per 1,000 parts,

(II) are minted after 1800,

(III) are or have been legal tender in their country of origin, and

(IV) are normally sold at a price which does not exceed the open market value of the gold contained in the coins by more than 80 per cent.

(b) For the purposes of the definition of “investment gold” in paragraph (a), gold coins which are listed in the “C” series of the Official Journal of the European Communities as fulfilling the criteria referred to in that definition in respect of gold coins shall be deemed to fulfil those criteria for the whole year for which the list is published.

(2) This section shall apply to—

(a) investment gold, including investment gold which is represented by securities or represented by certificates for allocated or unallocated gold or traded on gold accounts and including, in particular, gold loans and swaps, involving a right of ownership or a claim in respect of investment gold, and

(b) transactions concerning investment gold involving futures and forward contracts leading to a transfer of a right of ownership or a claim in respect of investment gold.

(3) Notwithstanding section 52 (1), a person who produces investment gold or transforms any gold into investment gold may, in accordance with conditions set out in regulations, waive the person’s right to exemption from tax on a supply of investment gold to another person who is engaged in the supply of goods and services in the course or furtherance of business.

(4) Where a person waives, in accordance with subsection (3), the person’s right to exemption from tax in respect of a supply of investment gold, an intermediary who supplies services in respect of that supply of investment gold may, in accordance with conditions set out in regulations, waive the intermediary’s right to exemption from tax in respect of those services.

(5)(a) Where a person waives, in accordance with subsection (3), the person’s right to exemption from tax in respect of a supply of investment gold, then, for the purposes of this Act—

(i) the person to whom the supply of investment gold is made shall, in relation thereto—

(I) be an accountable person, and

(II) be liable to pay the tax chargeable on that supply as if such accountable person had made that supply of investment gold for consideration in the course or furtherance of business,

and

(ii) the person who waived the right to exemption in respect of that supply shall not be liable to pay that tax.

(b) Where a person is liable for tax in accordance with paragraph (a) in respect of a supply of investment gold, the person shall, notwithstanding Chapter 1 of Part 8 , be entitled, in computing the amount of tax payable by that person in respect of the taxable period in which that liability to tax arises, to deduct the tax for which he or she is liable on that supply if his or her subsequent supply of that investment gold is exempt from tax.

(6)(a) An accountable person may, in computing the amount of tax payable by the accountable person in respect of any taxable period and notwithstanding Chapter 1 of Part 8 , deduct—

(i) the tax charged to the accountable person during that period by other accountable persons by means of invoices, prepared in the manner prescribed by regulations, in respect of supplies of gold to such person,

(ii) the tax chargeable during that period, being tax for which the accountable person is liable in respect of intra-Community acquisitions of gold, and

(iii) the tax paid by the accountable person, or deferred, as established from the relevant customs documents kept by him or her in accordance with section 84 (3) in respect of gold imported by him or her in that period,

where that gold is subsequently transformed into investment gold and the accountable person’s subsequent supply of that investment gold is exempt from tax.

(b) A person may claim, in accordance with regulations, a refund of—

(i) the tax charged to the person on the purchase of gold (other than investment gold) by him or her,

(ii) the tax chargeable to the person on the intra-Community acquisition of gold (other than investment gold) by him or her, and

(iii) the tax paid or deferred on the importation by the person of gold (other than investment gold),

where that gold is subsequently transformed into investment gold and that person’s subsequent supply of that investment gold is exempt from tax.

(7)(a) An accountable person may, in computing the amount of tax payable by the accountable person in respect of a taxable period and notwithstanding Chapter 1 of Part 8 , deduct the tax charged to that accountable person during that period by other accountable persons by means of invoices, prepared in the manner prescribed by regulations, in respect of the supply to the first-mentioned accountable person of services consisting of a change of form, weight or purity of gold where that accountable person’s subsequent supply of that gold is exempt from tax.

(b) A person may claim, in accordance with regulations, a refund of the tax charged to the person in respect of the supply to him or her of services consisting of a change of form, weight or purity of gold where his or her subsequent supply of that gold is exempt from tax.

(8)(a) An accountable person who produces investment gold or transforms any gold into investment gold may, in computing the amount of tax payable by the accountable person in respect of a taxable period and notwithstanding Chapter 1 of Part 8 , deduct—

(i) the tax charged to that accountable person during that 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 the first-mentioned accountable person,

(ii) the tax chargeable during that period, being tax for which that accountable person is liable in respect of intra-Community acquisitions of goods, and

(iii) the tax paid by that accountable person, or deferred, as established from the relevant customs documents kept by him or her in accordance with section 84 (3) in respect of goods imported by him or her in that period,

where those goods or services are linked to the production or transformation of that gold and that accountable person’s subsequent supply of that investment gold is exempt from tax.

(b) A person who produces investment gold or transforms any gold into investment gold may claim, in accordance with regulations, a refund of—

(i) the tax charged to the person on the purchase by him or her of goods or services,

(ii) the tax chargeable to the person on the intra-Community acquisition of goods by him or her, and

(iii) the tax paid or deferred by the person on the importation of goods by him or her,

where those goods or services are linked to the production or transformation of that gold and that person’s subsequent supply of that gold is exempt from tax.

(9) Every trader in investment gold shall—

(a) establish the identity of any person to whom that trader supplies investment gold when the total consideration which the trader is entitled to receive in respect of such supply, or a series of such supplies which are or appear to be linked, amounts to at least €15,000, and

(b) retain a copy of all documents used to identify such person to whom the investment gold is so supplied as if they were records to be kept in accordance with section 85 (3).

Electronic services scheme.

[VATA s. 5A]

91.—(1) In this section—

“electronic services scheme” means the special arrangements for the taxation of electronically supplied services provided for in Articles 358 to 369 of the VAT Directive;

“EU value-added tax” means value-added tax referred to in the VAT Directive and includes tax within the meaning of section 2 ;

“identified person” has the meaning assigned to it by subsection (5);

“Member State of consumption” means the Member State in which the supply of the electronic services takes place according to Article 58 of the VAT Directive;

“Member State of identification” means the Member State which the non-established person chooses to contact to state when his or her activity within the Community commences in accordance with the provisions of the electronic services scheme;

“national tax number” means a number (whether consisting of either or both numbers and letters) assigned to a non-established person by his or her own national taxation authorities;

“non-established person” means a person who has his or her establishment outside the Community and has not also an establishment in the Community and who is not otherwise required to be a person registered for value-added tax within the meaning of section 2 ;

“scheme participant” means a non-established person who supplies electronic services into the Community and who opts to use the electronic services scheme in any Member State;

“VAT return” means the statement containing the information necessary to establish the amount of EU value-added tax that has become chargeable in each Member State under the electronic services scheme.

(2) Subject to and in accordance with this section, a non-established person may opt to apply the electronic services scheme to his or her supplies of electronic services to non-taxable persons within the Community.

(3) The Revenue Commissioners shall set up and maintain a register (referred to in this section as an “identification register”) of non-established persons who are identified in the State for the purposes of the electronic services scheme.

(4) A non-established person who opts to be identified in the State for the purposes of the electronic services scheme shall inform the Revenue Commissioners, by electronic means in a manner specified by them, when his or her taxable activity commences and shall, at the same time, furnish them electronically with the following information:

(a) the person’s name and postal address;

(b) his or her electronic addresses, including website addresses;

(c) his or her national tax number (if any); and

(d) a statement that the person is not a person registered, or otherwise identified, for value-added tax purposes within the Community.

(5)(a) Where a person has furnished the particulars required under subsection (4), the Revenue Commissioners shall—

(i) register that person in accordance with subsection (3),

(ii) allocate to that person an identification number, and

(iii) notify that person electronically of that identification number.

(b) For the purposes of this section, a person to whom such an identification number has been allocated shall be referred to as an “identified person”.

(6)(a) Subject to paragraph (b), an identified person shall, within 20 days immediately following the end of each calendar quarter—

(i) furnish by electronic means to the Revenue Commissioners a VAT return, prepared in accordance with, and containing such particulars as are specified in, subsection (7), in respect of supplies made in the Community in that quarter, and

(ii) remit to the Revenue Commissioners, at the same time as so furnishing such return, into a bank account designated by them and denominated in euro, the amount of EU value-added tax (if any) payable by that person in respect of that quarter in relation to—

(I) supplies made in the State in accordance with section 34 (l), and

(II) supplies made in other Member States in accordance with the provisions implementing Article 58 of the VAT Directive in such other Member States.

(b) Where an identified person has not made any such electronic supplies to non-taxable persons into the Community within a calendar quarter, he or she shall furnish a nil VAT return in respect of that quarter.

(7) The VAT return referred to in subsection (6) shall be made in euro and shall contain—

(a) the person’s identification number,

(b) for each Member State of consumption where EU value-added tax has become due—

(i) the total value, exclusive of EU value-added tax, of supplies of electronic services for the quarter,

(ii) the amount of such value liable to EU value-added tax at the applicable rate, and

(iii) the amount of EU value-added tax corresponding to such value at the applicable rate,

and

(c) the total EU value-added tax due (if any).

(8) Notwithstanding section 37 (4), where supplies have been made using a currency other than the euro, the exchange rate to be used for the purposes of expressing the corresponding amount in euro on the VAT return shall be that published by the European Central Bank for the last date of the calendar quarter for which the VAT return relates or, if there is no publication on that date, on the next day of publication.

(9) Notwithstanding Chapter 1 of Part 8 , a scheme participant who supplies services which are deemed in accordance with section 34 (l) to be supplied in the State—

(a) shall not, in computing the amount of tax payable by him or her in respect of such supplies, be entitled to deduct any tax borne or paid in relation to those supplies, but

(b) shall be entitled to claim a refund of such tax in accordance with, and using the rules applicable to, Council Directive No. 86/560/EEC of 17 November 1986 6 , notwithstanding Articles 2(2), 2(3) and 4(2) of that Directive.

(10) A scheme participant who supplies services which are deemed in accordance with section 34 (l) to be supplied in the State shall be deemed to have fulfilled his or her obligations under Chapters 1, 3 and 7 of Part 9 if such participant has accounted in full in respect of such supplies in any Member State under the provisions of the electronic services scheme.

(11) For the purposes of this Act, a VAT return required to be furnished in accordance with the electronic services scheme shall, in so far as it relates to supplies made in accordance with section 34 (l), be treated, with any necessary modifications, as if it were a return required to be furnished in accordance with Chapter 3 of Part 9 .

(12)(a) An identified person shall—

(i) keep full and true records of all transactions covered by the electronic services scheme which affect his or her liability to EU value-added tax,

(ii) make such records available, by electronic means and on request, to the Revenue Commissioners,

(iii) make such records available, by electronic means and on request, to all Member States of consumption, and

(iv) notwithstanding Chapter 7 of Part 9 , retain such records for each transaction for a period of 10 years from the end of the year when that transaction occurred.

(b) A scheme participant who is deemed to supply services in the State in accordance with section 34 (l) shall be bound by the requirements of subparagraphs (i), (ii) and (iv) in relation to such supplies.

(13) An identified person shall notify the Revenue Commissioners electronically—

(a) of any changes in the information submitted under subsection (4), and

(b) if his or her taxable activity ceases or changes to the extent that he or she no longer qualifies for the electronic services scheme.

(14) The Revenue Commissioners shall exclude an identified person from the identification register if—

(a) they have reasonable grounds to believe that the person’s taxable activities have ended, or

(b) the identified person—

(i) notifies the Commissioners that he or she no longer supplies electronic services,

(ii) no longer fulfils the requirements necessary to be allowed to use the electronic services scheme, or

(iii) persistently fails to comply with the provisions of the electronic services scheme.

(15) The Revenue Commissioners may make regulations as necessary for the purpose of giving effect to the electronic services scheme.

Suspension arrangements for alcohol products.

[VATA s. 3B]

92.—(1) In this section—

“alcohol products” has the meaning assigned to it by section 73 (1) of the Finance Act 2003 ;

“suspension arrangement” means an arrangement under which excisable products are produced, processed, held or moved, excise duty being suspended.

(2) Where alcohol products are supplied while being held under a suspension arrangement, then—

(a) any such supply effected while the products are held under that arrangement (other than the last such supply in the State) shall be deemed not to be a supply for the purposes of this Act other than for the purposes of Chapter 1 of Part 8 , and

(b) any previous—

(i) intra-Community acquisition, or

(ii) importation,

of such products shall be disregarded for the purposes of this Act.

(3)(a) Subject to paragraph (b), where tax is chargeable on a supply referred to in subsection (2), then, notwithstanding section 74 (1), the tax on that supply shall be due at the same time as the duty of excise on the products is due.

(b) Paragraph (a) shall not apply to a supply of the kind referred to in paragraph 1(1) or (3), 3(1) or 7(6) of Schedule 2 .

(4) Where (other than in the circumstances set out in section 11 (2)), an accountable person makes an intra-Community acquisition of alcohol products and by virtue of that acquisition, and in accordance with Chapters 1 and 2 of Part 2 of the Finance Act 2001 , and any other enactment which is to be construed together with those Chapters, the duty of excise on those products is payable in the State, then, notwithstanding section 75 , the tax on that intra-Community acquisition shall be due at the same time as the duty of excise on the products is due.

(5) Where tax is chargeable on the importation of alcohol products, which are then placed under a suspension arrangement then, notwithstanding section 53 (3), the tax on that importation shall be due at the same time as the duty of excise on the products is due.

(6) Notwithstanding sections 37 (1) and (2) and 53 (1), where subsection (3), (4) or (5) applies, the amount on which tax is chargeable shall include the amount of the duty of excise chargeable on the products on their release for consumption in the State.

(7) Notwithstanding any other provision to the contrary in this Act, where subsection (3), (4) or (5) applies, then—

(a) the tax shall be payable at the same time as the duty of excise is payable on the products,

(b) the provisions of the statutes which relate to the duties of excise and the management thereof and of any instrument relating to duties of excise made under statute, shall, with any necessary modifications and exceptions as may be specified in regulations, apply to such tax as if it were a duty of excise, and

(c) the person by whom the tax is payable shall complete such form as is provided for the purposes of this subsection by the Revenue Commissioners.

PART 11

Immovable Goods

Supply of immovable goods (old rules).

[VATA s. 4(1), (9) and (10) and s. 4 (11) (in part)]

93.—(1)(a) In this section—

(i) “interest”, in relation to immovable goods—

(I) subject to clause (II), means an estate or interest in those goods which, when it was created, was for a period of at least 10 years or, if it was for a period of less than 10 years, its terms contained an option for the person in whose favour the interest was created to extend it to a period of at least 10 years,

(II) does not include a mortgage,

(ii) a reference to the disposal of an interest includes a reference to the creation of an interest, and

(iii) an interval of the type referred to in section 4(2A) of the repealed enactment shall be deemed to be an interest for the purposes of this section.

(b) Where an interest is created and, at the date of its creation, its terms contain one or more options for the person in whose favour the interest was so created to extend the interest, then that interest shall be deemed to be for the period from the date of creation of that interest to the date that that interest would expire if those options were so exercised.

(c) This section applies to immovable goods—

(i) which have been developed by or on behalf of the person supplying them, or

(ii) in respect of which the person supplying them was, or would, but for the operation of section 20 (2)(c), have been at any time entitled to claim a deduction under Chapter 1 of Part 8 for any tax borne or paid in relation to a supply or development of them.

(2)(a)(i) Subject to subparagraph (ii), where an interest in immovable goods was created prior to 1 July 2008 in such circumstances that a reversion on that interest (in this subsection referred to as a “reversionary interest”) was created and retained, then any subsequent disposal to another person of the reversionary interest or of an interest derived entirely from that reversionary interest shall be deemed to be a supply of immovable goods to which tax is not charged if, since the date the first-mentioned interest was created, those goods have not been developed by, on behalf of, or to the benefit of, the person making such subsequent disposal.

(ii) This subsection shall not be construed as applying to a disposal of an interest which includes an interval.

(b) For the purposes of this subsection, the Revenue Commissioners may make regulations specifying the circumstances or conditions under which development work on immovable goods is not treated as being on behalf of, or to the benefit of, a person.

(3)(a) For the purposes of this subsection—

“landlord” has the meaning assigned to it by paragraph (b);

“post-letting expenses”, in relation to an interest in immovable goods—

(i) subject to subparagraph (ii), means expenses which the landlord incurs—

(I) in carrying out services which the landlord is obliged to carry out under the terms and conditions of the written contract entered into on the disposal of the interest which was chargeable to tax (other than transactions in relation to which the obligation to perform is not reflected in the consideration on which tax was charged on the disposal of that interest),

(II) which directly relate to the collection of rent arising under the contract referred to in clause (I),

(III) which directly relate to a review of rent where the terms and conditions of the contract referred to in clause (I) provide for such a review, or

(IV) which directly relate to the exercise of an option to extend the interest or to exercise a break-clause in relation to that interest where the terms and conditions of the contract referred to in clause (I) provide for such an option or such a break-clause,

(ii) do not include any expenses relating to goods or services of the type specified in section 60 (2).

(b) Where—

(i) an interest in immovable goods was disposed of prior to 1 July 2008,

(ii) that disposal was chargeable to tax, and

(iii) the person who acquired that interest is obliged to pay rent to another person (in this subsection referred to as the “landlord”) under the terms and conditions laid down in respect of that interest,

then the landlord—

(I) shall, notwithstanding Part 2 , be deemed not to be an accountable person in respect of transactions in relation to those immovable goods other than—

(A) supplies of those immovable goods on which tax was chargeable in accordance with section 4 of the repealed enactment,

(B) supplies of other goods or services effected for consideration by the landlord, or

(C) post-letting expenses in respect of that interest,

(II) shall not be entitled to deduct tax in respect of transactions in relation to those immovable goods other than—

(A) supplies of those immovable goods on which tax was chargeable in accordance with section 4 (other than subsection (4) of that section) of the repealed enactment,

(B) supplies of other goods or services effected for consideration by the landlord, or

(C) post-letting expenses in respect of that interest,

(III) shall be deemed, where the landlord is not the person who made the disposal of the interest, to be an accountable person in respect of post-letting expenses in relation to that interest, and

(IV) shall, in relation to those post-letting expenses, be entitled to deduct tax, in accordance with Chapter 1 of Part 8 , as if those post-letting expenses were for the purposes of the landlord’s taxable supplies.

Supplies of immovable goods (new rules).

[VATA s. 4B]

94.—(1) In this section—

“completed”, in respect of immovable goods, means that the development of those goods has reached the state, apart from only such finishing or fitting work that would normally be carried out by or on behalf of the person who will use them, where the goods can effectively be used for the purposes for which the goods were designed, and the utility services required for those purposes are connected to the goods;

“occupied”, in respect of immovable goods, means—

(a) occupied and fully in use following completion, where that use is one for which planning permission for the development of those goods was granted, and

(b) where those goods are let, occupied and fully in such use by the tenant.

(2) Subject to subsections (3), (5), (8) and (9) and section 95 (7)(a), tax is not chargeable on the supply of immovable goods—

(a) that have not been developed within 20 years prior to that supply,

(b) being completed immovable goods, the most recent completion of which occurred more than 5 years prior to that supply, and those goods have not been developed within that 5 year period,

(c) being completed immovable goods that have not been developed since the most recent completion of those goods, where that supply—

(i) occurs after the immovable goods have been occupied for an aggregate of at least 24 months following the most recent completion of those goods, and

(ii) takes place after a previous supply of those goods on which tax was chargeable and that previous supply—

(I) took place after the most recent completion of those goods, and

(II) was a transaction between persons who were not connected within the meaning of section 97 ,

(d) being a building that was completed more than 5 years prior to that supply and on which development was carried out in the 5 years prior to that supply where—

(i) such development did not and was not intended to adapt the building for a materially altered use, and

(ii) the cost of such development did not exceed 25 per cent of the consideration for that supply,

or

(e) being a building that was completed within the 5 years prior to that supply where—

(i) the building had been occupied for an aggregate of at least 24 months following that completion,

(ii) that supply takes place after a previous supply of the building on which tax was chargeable and that previous supply—

(I) took place after that completion of the building, and

(II) was a transaction between persons who were not connected within the meaning of section 97 ,

and

(iii) if any development of that building occurred after that completion—

(I) such development did not and was not intended to adapt the building for a materially altered use, and

(II) the cost of such development did not exceed 25 per cent of the consideration for that supply.

(3) Where a person supplies immovable goods to another person and in connection with that supply a taxable person enters into an agreement with that other person or with a person connected with that other person to carry out a development in relation to those immovable goods, then—

(a) the person who supplies the goods shall, in relation to that supply, be deemed to be a taxable person,

(b) the supply of the goods shall be deemed to be a supply to which section 3 applies, and

(c) subsection (2) does not apply to that supply.

(4) Section 6 (1) and (2) does not apply in relation to a person who makes a supply of immovable goods.

(5) Subject to subsection (9), where a taxable person who carries on a business in the State supplies immovable goods to another taxable person who carries on a business in the State in circumstances where that supply would otherwise be exempted because of subsection (2), or section 95 (3) or (7)(b), then, notwithstanding those provisions, tax is chargeable on that supply, but only if the supplier and the taxable person to whom the supply is made have, no later than the 15th day of the month after the month during which the supply occurred, entered into an agreement in writing to opt to have tax chargeable on that supply (in this Act referred to as a “joint option for taxation”).

(6) Where a joint option for taxation is exercised in accordance with subsection (5), then—

(a) the person to whom the supply is made shall, in relation to that supply, be an accountable person and shall be liable to pay the tax chargeable on that supply as if that person supplied those goods, and

(b) the person who made the supply shall not be accountable for or liable to pay such tax.

(7)(a) In this subsection—

“owner” means the accountable person referred to in section 22 (3);

“purchaser” means the person to whom the immovable goods that are referred to in paragraph (b) are supplied;

“vendor” means the person referred to in section 22 (3), not being the accountable person referred to in that section, who disposes of the immovable goods that are referred to in paragraph (b).

(b) Where a supply of immovable goods is a supply to which section 22 (3) applies and that supply would otherwise be exempted because of subsection (2), or section 95 (3) or (7)(b), then, notwithstanding those provisions, tax is chargeable on that supply where—

(i) the purchaser is a taxable person, and

(ii) the vendor and the purchaser have, no later than the 15th day of the month after the month during which the supply occurred, entered into an agreement in writing to opt to have tax chargeable on that supply.

(c) Where paragraph (b) applies—

(i) the purchaser shall, in relation to that supply, be an accountable person and shall be liable to pay the tax chargeable on that supply as if that purchaser supplied those goods,

(ii) neither the vendor nor the owner shall be accountable for or liable to pay that tax,

and

(iii) sections 65 (4) and 76 (2) shall not apply.

(d) Paragraph (b) shall not apply where the purchaser is a person connected (within the meaning of section 97 (3)) with either the vendor or the owner.

(e) Where a supply of immovable goods is a supply to which section 22 (3) applies and that supply would otherwise be exempted because of subsection (2), then, notwithstanding that provision, tax is chargeable on that supply where—

(i) the immovable goods are buildings designed as or capable of being used as a dwelling,

(ii) the owner is a person who developed those immovable goods in the course of a business of developing immovable goods or is a person connected with that person within the meaning of section 97 (3), and

(iii) the owner was entitled to a deduction under Chapter 1 of Part 8 for tax chargeable to that person in respect of that owner’s acquisition or development of those immovable goods.

(8)(a) In this subsection and in subsection (9)

“recipient” has the meaning assigned to it by section 16 (1)(a).

“relevant supply” has the meaning assigned to it by section 16 (1)(a).

(b) Where a taxable person supplies immovable goods to another person in circumstances where that supply would otherwise be exempt in accordance with subsection (2), tax shall, notwithstanding that subsection, be chargeable on that supply where—

(i) the immovable goods are buildings designed as or capable of being used as a dwelling,

(ii) the person who makes that supply is a person who developed the immovable goods in the course of a business of developing immovable goods or a person connected with that person within the meaning of section 97 (3), and

(iii) the person who developed those immovable goods was entitled to a deduction under Chapter 1 of Part 8 for tax chargeable to that person in respect of that person’s acquisition or development of those immovable goods.

(c) In the case of a building to which this subsection would apply if the building were supplied by the taxable person at any time during the capital goods scheme adjustment period for that building—

(i) section 64 (4) and (5) shall not apply, and

(ii) notwithstanding section 64 (2), the proportion of total tax incurred that is deductible by that person shall be treated as the initial interval proportion of deductible use.

(d) Where a relevant supply is a supply of immovable goods to which this subsection would apply, the recipient shall be treated thereafter, for the purposes of this subsection in respect of those immovable goods, as if that recipient were a person connected (within the meaning of section 97 (3)) to the person who developed those immovable goods.

(9)(a) Where a relevant supply occurs and that supply would otherwise be exempt in accordance with subsection (2), then—

(i) the recipient may opt to tax that supply (in this subsection referred to as an “option for taxation”), and

(ii) if that option is exercised—

(I) notwithstanding subsection (2), tax shall be chargeable on that supply, and

(II) subsection (5) shall not apply.

(b) The option for taxation shall not apply to relevant supplies that are exempt in accordance with section 93 (2) or 95 (3) or (7)(b).

(c) The option for taxation shall be deemed to be exercised by the recipient in relation to a relevant supply which would otherwise be exempt in accordance with subsection (2)(b) to (e).

Transitional measures for supplies of immovable goods.

[VATA s. 4(3)(ab) (in part) and (8) (in part) and s. 4C]

95.—(1) This section applies to—

(a) immovable goods which are acquired or developed by a taxable person prior to 1 July 2008, being completed immovable goods before 1 July 2008, and have not been disposed of by the taxable person prior to that date, until such time as those goods have been disposed of by that taxable person on or after that date, and

(b) an interest in immovable goods within the meaning of section 93 (other than a freehold interest or a freehold equivalent interest) created by a taxable person prior to 1 July 2008 and held by a taxable person on 1 July 2008 and the reversionary interest (within the meaning of section 93 (2)) on that interest until that interest is surrendered after 1 July 2008.

(2) Where an interest to which subsection (1)(b) applies is surrendered, then, for the purposes of the application of Chapter 2 of Part 8 in respect of the immovable goods concerned—

(a) the total tax incurred shall include the amount of tax chargeable on the surrender in accordance with subsection (8) and shall not include tax incurred prior to the creation of the surrendered interest, and

(b) the adjustment period shall consist of the number of intervals specified in subsection (12)(c)(iv) and the initial interval shall begin on the date of that surrender.

(3) In the case of a supply of immovable goods to which subsection (1)(a) applies, being completed immovable goods within the meaning of section 94

(a) where the person supplying those goods had no right to deduct under section 12 of the repealed enactment in relation to the tax chargeable on the acquisition or development of those goods prior to 1 July 2008, and

(b) if any subsequent development of those immovable goods occurs on or after 1 July 2008—

(i) that development does not and is not intended to adapt the immovable goods for a materially altered use, and

(ii) the cost of that development does not exceed 25 per cent of the consideration for that supply,

then, subject to section 94 (3), that supply is not chargeable to tax but a joint option for taxation may be exercised in respect of that supply in accordance with section 94 (5) and that tax is payable in accordance with section 94 (6).

(4)(a) Where a person referred to in subsection (1)

(i) acquired, developed or has an interest in immovable goods to which this section applies,

(ii) was entitled to deduct tax, in accordance with section 12 of the repealed enactment, on that person’s acquisition or development of those goods, and

(iii) makes a letting of those immovable goods to which paragraph 11 of Schedule 1 applies,

then that person (in this subsection referred as the “landlord”) shall calculate an amount (in this subsection referred to as a “deductibility adjustment”) in accordance with the formula set out in paragraph (b) and that amount shall be payable as if it were tax due by that person in accordance with Chapter 3 of Part 9 for the taxable period in which that letting takes place.

(b) The deductibility adjustment shall be calculated in accordance with the formula—

TD × (Y — N)

Y

where—

TD is the amount of the tax referred to in paragraph (a)(ii) that the landlord was entitled to deduct,

Y is 20 or, if the interest when it was acquired by the landlord was for a period of less than 20 years, the number of full years in that interest, and

N is the number of full years since the landlord acquired the interest in the immovable goods referred to in paragraph (a) or, if the goods were developed since that interest was acquired, the number of full years since the most recent development,

but if that N is greater than that Y, the deductibility adjustment shall be deemed to be nil.

(5) An assignment or surrender of an interest in immovable goods to which subsection (1)(b) applies is deemed to be a supply of immovable goods for the purposes of this Act for a period of 20 years from the creation of the interest or the most recent assignment of that interest before 1 July 2008, whichever is the later.

(6) Where—

(a) a person makes a supply of immovable goods to which this section applies,

(b) tax is chargeable on that supply, and

(c) that person was not entitled to deduct all the tax charged to that person on the acquisition or development of those immovable goods,

then that person shall be entitled to make the appropriate adjustment that would apply under section 64 (6)(a) as if the capital goods scheme applied to that transaction.

(7) In the case of an assignment or surrender of an interest in immovable goods referred to in subsection (5)

(a) tax shall be chargeable where the person who makes the assignment or surrender was entitled to deduct in accordance with Chapter 1 of Part 8 any of the tax chargeable on the acquisition of that interest, or the development of those immovable goods, and

(b) tax shall not be chargeable where the person who makes the assignment or surrender had no right to deduction under Chapter 1 of Part 8 on the acquisition of that interest or the development of those immovable goods, but a joint option for taxation of that assignment or surrender may be exercised.

(8)(a) Notwithstanding Chapter 1 of Part 5 , the amount on which tax is chargeable on a taxable assignment or surrender to which subsection (7) applies shall be the amount calculated in accordance with the formula set out in paragraph (b) divided by the rate as specified in section 46 (1)(c) expressed in decimal form.

(b) The amount of tax due and payable in respect of a taxable assignment or surrender to which subsection (7) applies is an amount calculated in accordance with the formula—

T × N

Y

where—

T is the total tax incurred referred to in subsection (12)(d) except for the amount of tax charged in respect of any development by the person who makes the assignment or surrender following the acquisition of the interest,

N is the number of full intervals plus one that remain in the adjustment period referred to in subsection (12)(c) at the time of the assignment or surrender,

Y is the total number of intervals in that adjustment period for the person making the assignment or surrender,

and paragraphs (c) to (e) shall apply to that tax.

(c) Where tax is chargeable in relation to a supply of immovable goods which is a surrender of an interest in immovable goods or an assignment of an interest in immovable goods to—

(i) an accountable person,

(ii) a Department of State or a local authority, or

(iii) a person who supplies immovable goods of a kind referred to in paragraph (a) of the definition of “exempted activity” in section 2 (1), or services of a kind referred to in paragraphs 1, 5(4), 6, 7, 8, 11 and 14(3) of Schedule 1 , in the course or furtherance of business,

then—

(I) the person to whom those goods are supplied shall be accountable for and liable to pay the tax chargeable on that supply,

(II) such tax shall be payable as if it were tax due by that person in accordance with Chapter 3 of Part 9 for the taxable period within which the supply to the person took place, and

(III) for the purposes of subparagraphs (I) and (II), the person to whom the goods are supplied shall be an accountable person and the person who made the surrender or assignment shall not be accountable for or liable to pay such tax.

(d) Where the supply referred to in paragraph (c) is to a Department of State or a local authority, then, notwithstanding anything to the contrary effect in section 14 (2), the Department of State or local authority shall be accountable for and liable to pay the tax referred to in that paragraph.

(e)(i) A surrender or assignment of immovable goods referred to in paragraph (c) shall be treated as a supply of goods made by the person to whom the goods are supplied.

(ii) Subject to subparagraph (iii), on the surrender or assignment of immovable goods referred to in subparagraph (i), the person who makes the surrender or assignment shall issue a document to the person to whom the surrender or assignment is made indicating—

(I) the value of the interest being surrendered or assigned, and

(II) the amount of tax chargeable on that surrender or assignment.

(iii) Subparagraph (ii) shall not apply where the person who makes the surrender or assignment is obliged to issue a document in accordance with subsection (9)(a) to the person to whom that surrender or assignment is made.

(iv) For the purposes of Chapter 1 of Part 8 , that Chapter shall apply as if this paragraph had not been enacted.

(9)(a) Where an interest in immovable goods referred to in subsection (7) is assigned or surrendered to a taxable person during the adjustment period and tax is payable in respect of that assignment or surrender, then the person who makes the assignment or surrender shall issue a document to the person to whom the interest is being assigned or surrendered containing the following information:

(i) the amount of tax due and payable on that assignment or surrender; and

(ii) the number of intervals remaining in the adjustment period as determined in accordance with subsection (12)(c)(iv).

(b) Where paragraph (a) applies, the person to whom the interest is assigned or surrendered shall be a capital goods owner for the purpose of Chapter 2 of Part 8 in respect of the capital good being assigned or surrendered, and shall be subject to that Chapter and for this purpose—

(i) the adjustment period shall be the period referred to in subsection (12)(c) as correctly specified on the document referred to in paragraph (a),

(ii) the total tax incurred shall be the amount of tax referred to in subsection (12)(d) as correctly specified in the document referred to in paragraph (a), and

(iii) the initial interval shall be a period of 12 months beginning on the date on which the assignment or surrender occurs.

(10) Where a person cancels an election to be an accountable person in accordance with section 8 (2), then, in respect of the immovable goods which were used in supplying the services for which that person made that election, Chapter 2 of Part 8 does not apply if those immovable goods are held by that person on 1 July 2008 and are not further developed after that date.

(11) In the application of Chapter 2 of Part 8 to immovable goods and interests in immovable goods to which this section applies, section 64 (2) to (5) shall be disregarded in respect of the person who, on 1 July 2008, owns those immovable goods or holds an interest in those immovable goods, but—

(a) if that person develops those immovable goods and that development is a refurbishment (within the meaning of Chapter 2 of Part 8 ) that is completed on or after 1 July 2008, section 64 (2) to (5) shall not be disregarded in respect of that refurbishment,

(b) if, on or after 23 February 2010, that person—

(i) first uses those immovable goods (in this subsection referred to as the “first use”), or

(ii) changes the use of those immovable goods (in this subsection referred to as the “changed use”),

and the first use, or the changed use, as the case may be, is a use of those immovable goods for a purpose other than the provision of a letting of the type referred to in paragraph 11(1) of Schedule 1 , then section 64 (4)(a) to (d) shall not be disregarded for the remainder of the adjustment period applicable to those immovable goods.

(12) For the purposes of applying Chapter 2 of Part 8 to immovable goods or interests in immovable goods to which this section applies—

(a) any interest in immovable goods to which this section applies shall be treated as a capital good,

(b) any person who has an interest in immovable goods to which this section applies shall be treated as a capital goods owner, but shall not be so treated to the extent that the person has a reversionary interest in those immovable goods if those goods were not developed by, on behalf of, or to the benefit of, that person,

(c) the period to be treated as the adjustment period in respect of immovable goods or interests in immovable goods to which this section applies is—

(i) in the case of the acquisition of the freehold interest or freehold equivalent interest in those immovable goods, 20 years from the date of that acquisition,

(ii) in the case of the creation of an interest in those immovable goods, 20 years or, if the interest when it was created was for a period of less than 20 years, the number of full years in that interest when created, whichever is the shorter,

(iii) in the case of the assignment or surrender of an interest in immovable goods prior to 1 July 2008, the period remaining in that interest at the time of the assignment or surrender of that interest or 20 years, whichever is the shorter, or

(iv) in the case of—

(I) the surrender or first assignment of an interest in immovable goods on or after 1 July 2008, the number of full years remaining in the adjustment period as determined in accordance with subparagraphs (ii) and (iii), plus one, or

(II) the second or subsequent assignment of an interest in immovable goods after 1 July 2008, the number of full intervals remaining in the adjustment period as determined in accordance with clause (I), plus one,

and this number shall thereafter be the number of intervals remaining in the adjustment period,

but where the immovable goods have been developed since the acquisition of those immovable goods or the creation of that interest, 20 years from the date of the most recent development of those goods,

(d) the amount of tax charged, or the amount of tax that would have been chargeable but for the application of section 20 (2)(c) or 56 , to the person treated as the capital goods owner on the acquisition of, or development of, the capital goods shall be treated as the total tax incurred,

(e) the total tax incurred divided by the number of intervals in the adjustment period referred to in paragraph (c) shall be treated as the base tax amount,

(f) each year in the adjustment period referred to in paragraph (c) shall be treated as an interval,

(g) the first 12 months of the adjustment period referred to in paragraph (c) shall be treated as the initial interval,

(h) the second year of the adjustment period referred to in paragraph (c) shall be treated as the second interval but, in the case of an interest which is assigned or surrendered on or after 1 July 2008, the second interval of the adjustment period shall have the meaning assigned to it by Chapter 2 of Part 8 ,

(i) each year following the second year in the adjustment period referred to in paragraph (c) shall be treated as a subsequent interval,

(j) the amount which shall be treated as the total reviewed deductible amount shall be the amount of the total tax incurred as provided for in paragraph (d) less—

(i) any amount of the total tax incurred which was charged to the person treated as the capital goods owner but which that owner was not entitled to deduct in accordance with Chapter 1 of Part 8 ,

(ii) any amount accounted for in accordance with section 12D(4) of the repealed enactment by the person treated as the capital goods owner in respect of a transfer of the goods to that owner prior to 1 July 2008,

(iii) any tax payable in respect of those capital goods in accordance with section 19 (1)(f), or section 4(3)(a) of the repealed enactment, by the person treated as the capital goods owner, and

(iv) where an adjustment of deductibility has been made in respect of the capital good in accordance with subsection (4)(a) or section 4(3)(ab) of the repealed enactment, the amount “TD” in the formula set out in subsection (4)(b),

(k) the amount referred to in paragraph (d) less the amount referred to in paragraph (j) shall be treated as the non-deductible amount,

and for the purposes of applying paragraphs (f), (h) and (i) “year” means each 12 month period in the adjustment period, the first of which begins on the first day of the initial interval referred to in paragraph (g).

(13)(a) Subject to paragraph (b), where a taxable person acquires immovable goods on or after 1 July 2007, then, notwithstanding subsection (11), section 64 (2) shall apply and, notwithstanding subsection (12)(j), the total reviewed deductible amount shall have the meaning assigned to it by Chapter 2 of Part 8 .

(b) Paragraph (a) does not apply where a taxable person has made an adjustment in accordance with section 61 (7) in respect of those goods.

Waiver of exemption under old rules.

[VATA s. 7(2) (in part), s. 7(3), (4) and (6), s. 7B(1) to (5), s. 7B(6) (in part) and s. 7B(9) and (10)]

96.—(1) In this section “waiver” means a waiver of exemption from tax under section 7(1) of the repealed enactment.

(2) A waiver shall cease to have effect at the end of the taxable period during which it is cancelled in accordance with subsection (3).

(3) Provision may be made by regulations for the cancellation, at the request of a person or in accordance with subsection (8) or (12), of a waiver by the person and for the payment by that person to the Revenue Commissioners as a condition of cancellation of such sum (if any) as when added to the total amount of tax (if any) due by him or her in accordance with Chapter 3 of Part 9 in relation to the supply of services by him or her to which the waiver applied is equal to the total of—

(a) the amount of tax deducted by the person in accordance with Chapter 1 of Part 8 in respect of tax borne or paid in relation to the supply of such services,

(b) the amount of tax deducted by the person in accordance with section 12 of the repealed enactment, prior to the commencement of the letting of the immovable goods to which the waiver relates, in respect of or in relation to his or her acquisition of his or her interest in, or his or her development of, those immovable goods,

(c) the amount of tax that would have been deductible by the person in accordance with section 12 of the repealed enactment if tax had been chargeable on the transfer of ownership of goods to him or her in respect of which section 20 (2)(c) was applied, and those goods were used by him or her in the supply of such services, and

(d) the amount of tax that would have been deductible by that person in accordance with section 12 of the repealed enactment if—

(i) tax had been chargeable on the supply to that person of goods or services in respect of which paragraph 7(7) of Schedule 2 was applied, and

(ii) those goods or services were used, in relation to the supply of services to which the waiver applied, by the person.

(4) Where there is a waiver in respect of the supply of a service, tax shall be charged in relation to the person making the waiver during the period for which the waiver has effect as if the service to which the waiver applies was not specified in Schedule 1 .

(5) Where a person cancelled his or her waiver before 1 July 2008, then, for the purposes of applying Chapter 2 of Part 8 , the adjustment period (within the meaning of section 63 (1) or, as the context may require, the period to be treated as the adjustment period in accordance with section 95 (12)) in relation to any capital good the tax chargeable on that person’s acquisition or development of which that person was obliged to take into account when that person made that cancellation, shall be treated as if it ended on the date on which that cancellation had effect.

(6) Subsections (6) to (12) apply to an accountable person (in those subsections referred to as a “landlord”)—

(a) who has a waiver, and

(b) who had not cancelled the waiver before 1 July 2008.

(7) For the purposes of applying Chapter 2 of Part 8 , the adjustment period (within the meaning of section 63 (1) or, as the context may require, the period to be treated as the adjustment period in accordance with section 95 (12)) in relation to a capital good the tax chargeable on the landlord’s acquisition or development of which that landlord was obliged to take into account when that landlord cancelled his or her waiver, shall end on the date on which that cancellation had effect.

(8) Where a landlord makes or has made a letting and, were that letting not already subject to a waiver, that letting would be one in respect of which the landlord would not, because of section 97 (2), be entitled to exercise a landlord’s option to tax in accordance with section 97 , then the landlord’s waiver of exemption shall, subject to subsection (9), immediately cease to apply to that letting, and—

(a) that landlord shall pay an amount, as if it were tax due by that person in accordance with Chapter 3 of Part 9 for the taxable period in which the waiver ceases to apply to that letting, equal to the sum (if any) which would be payable in accordance with subsection (3) in respect of the cancellation of a waiver as if that landlord’s waiver applied only to the immovable goods or the interest in immovable goods subject to that letting to which the waiver has ceased to apply, and

(b) the amounts taken into account in calculating that sum (if any) shall be disregarded in any future cancellation of that waiver.

(9)(a) Subject to paragraph (c), where a landlord has a letting to which subsection (8) would otherwise apply, that subsection shall not apply while, on the basis of the letting agreement in place, the tax that the landlord will be required to account for, in equal amounts for each taxable period, in respect of the letting during the next 12 months is not less than the amount calculated at that time in accordance with the formula set out in subsection (10).

(b) Where the conditions in paragraph (a) fail to be satisfied because of a variation in the terms of the lease or otherwise or if the tax paid at any time in respect of the letting is less than the tax payable, this subsection shall cease to apply.

(c) This subsection applies to a letting referred to in paragraph (a)

(i) where a landlord has a waiver in place on 18 February 2008 and—

(I) on 1 July 2008 that letting had been in place since 18 February 2008, or

(II) the immovable goods subject to the letting are owned by that landlord on 18 February 2008 and are in the course of development by or on behalf of that landlord on that day,

or

(ii) where a landlord holds an interest, other than a freehold interest or a freehold equivalent interest in the immovable goods subject to the letting, acquired between 18 February 2008 and 30 June 2008 from a person with whom the landlord is not connected, within the meaning of section 97 , in a transaction which was treated as a supply of goods in accordance with section 4 of the repealed enactment.

(10) The formula to be used for the purposes of subsection (9) is—

A — B

12 — Y

where—

A is the amount of tax that would be taken into account for the purposes of subsection (3) in respect of the acquisition or development of the immovable goods, if the waiver were being cancelled at the time referred to in subsection (9),

B is the amount of tax chargeable on the consideration by the landlord in respect of the letting of those immovable goods and paid in accordance with Chapter 3 of Part 9 that would be taken into account for the purposes of subsection (3) if the waiver were being cancelled at that time and that letting were the only one to which that waiver applied, and

Y is 11, or the number of full years since the later of—

(i) the date of the first letting of those goods, and

(ii) the date on which the landlord waived exemption,

where that number is less than 11 years.

(11) Where—

(a) a landlord has a letting to which subsection (8) or (9) applies,

(b) that landlord becomes a person in a group within the meaning of section 15 on or after 1 July 2008, and

(c) the person to whom that letting is made is a person in that group,

then the person referred to in section 15 (1)(a)(i) in respect of that group shall be liable to pay the amount as specified in subsection (8)(a) as if it were tax due in accordance with Chapter 3 of Part 9 in the taxable period during which that landlord became a person in that group.

(12)(a) In this subsection “relevant immovable goods” means immovable goods the tax chargeable on the acquisition or development of which a landlord would be obliged to take into account in accordance with subsection (3) in relation to the cancellation of that landlord’s waiver.

(b) This subsection applies where—

(i) on or after 3 June 2009, a landlord has an interest in relevant immovable goods,

(ii) the landlord ceases, whether as a result of disposing of such goods or otherwise, to have an interest in any such goods, and

(iii) on the date when that landlord ceases to have any such interest, that landlord’s waiver has not been cancelled in accordance with subsection (3).

(c) Where this subsection applies—

(i) the landlord’s waiver of exemption shall be treated as if it were cancelled on the date referred to in paragraph (b)(iii), and

(ii) that landlord shall pay an amount, being the amount payable in accordance with subsection (3) in respect of the cancellation of that waiver, as if it were tax due by that landlord for the taxable period in which the waiver of exemption is so treated as cancelled.

Option to tax letting of immovable goods.

[VATA s. 7A]

97.—(1)(a)(i) Tax shall be chargeable in accordance with this Act on the supply of a service to which paragraph 11 of Schedule 1 relates (in this section referred to as a “letting”) where, subject to subsections (2) and (4), the supplier (in this section referred to as a “landlord”) opts to make that letting so chargeable.

(ii) A landlord who exercises such option (in this Act referred to as a “landlord’s option to tax”) shall, notwithstanding section 6 (1) and (2), be an accountable person and liable to account for the tax on that letting in accordance with this Act, and that letting shall not be a supply to which section 52 applies.

(b) Where a taxable person is entitled to deduct tax on the acquisition or development of immovable goods on the basis that the goods will be used for the purpose of a letting or lettings in respect of which a landlord’s option to tax will apply, then—

(i) the person shall be treated as having exercised the landlord’s option to tax in respect of any lettings of those immovable goods, and

(ii) that option shall be deemed to continue in place until that person makes a letting in respect of which neither of the conditions of paragraph (c) is fulfilled.

(c) A landlord’s option to tax in respect of a letting is exercised by—

(i) a provision in writing in a letting agreement between the landlord and the person to whom the letting is made (in this section referred to as a “tenant”) that tax is chargeable on the rent, or

(ii) the issuing by the landlord of a document to the tenant giving notification that tax is chargeable on the letting.

(d) A landlord’s option to tax in respect of a letting is terminated—

(i) in the case of an option exercised in accordance with paragraph (b), by making a letting of the immovable goods referred to in that paragraph in respect of which neither of the conditions of paragraph (c) is fulfilled,

(ii) in the case of an option exercised in accordance with paragraph (c), by—

(I) an agreement in writing between the landlord and tenant that the option is terminated and specifying the date of termination which shall not be earlier than the date of that agreement, or

(II) the delivery to the tenant of a document giving notification that the option has been terminated and specifying the date of termination which shall not be earlier than the date that notification is received by the tenant,

(iii) where the landlord and tenant become connected persons,

(iv) where the landlord or a person connected with the landlord occupies the immovable goods that are subject to that letting whether that person occupies those goods by way of letting or otherwise, or

(v) where the immovable goods that are subject to that letting are used or to be used for residential purposes within the meaning of subsection (4).

(2)(a) Subject to paragraphs (b) and (c), a landlord may not opt to tax a letting—

(i) where the landlord and the tenant in respect of that letting are connected persons, or

(ii) where the landlord, whether or not connected to the tenant, or a person connected to the landlord, occupies the immovable goods that are subject to that letting whether that landlord or that person occupies those goods by way of letting or otherwise.

(b)(i) Subject to subparagraph (ii), paragraph (a)(i) and subsection (1)(d)(iii) shall not apply where the immovable goods which are the subject of the letting are used for the purposes of supplies or activities which entitle the tenant to deduct at least 90 per cent of the tax chargeable on the letting in accordance with Chapter 1 of Part 8 .

(ii) Where a landlord has exercised a landlord’s option to tax in respect of a letting to which paragraph (a)(i) would have applied but for subparagraph (i), paragraph (a)(i) shall apply from the end of the first accounting year in which the goods are used for the purposes of supplies or activities which entitle the tenant to deduct less than 90 per cent of the said tax chargeable.

(c)(i) Subject to subparagraph (ii), paragraph (a)(ii) and subsection (1)(d)(iv) shall not apply where the occupant (being any person including the landlord referred to in that paragraph or that subsection) uses the immovable goods which are the subject of the letting for the purpose of making supplies which entitle that occupant to deduct, in accordance with Chapter 1 of Part 8 , at least 90 per cent of all tax chargeable in respect of goods or services used by that occupant for the purpose of making those supplies.

(ii) Where a landlord has exercised a landlord’s option to tax in respect of a letting to which paragraph (a)(ii) would have applied but for subparagraph (i), paragraph (a)(ii) shall apply from the end of the first accounting year in which the immovable goods are used for the purpose of making supplies which entitle that occupant to deduct less than 90 per cent of the said tax chargeable.

(3)(a) In this subsection—

“control”, in the case of a body corporate or in the case of a partnership, has the meaning assigned to it by section 4 (2);

“relative” means a brother, sister, ancestor or lineal descendant.

(b) For the purposes of this section, any question of whether a person is connected with another person shall be determined in accordance with the following:

(i) a person is connected with an individual if that person is the individual’s spouse, or is a relative, or the spouse of a relative, of the individual or of the individual’s spouse;

(ii) a person is connected with any person with whom he or she is in partnership, and with the spouse or a relative of any individual with whom he or she is in partnership;

(iii) subject to clauses (IV) and (V) of subparagraph (v), a person is connected with another person if he or she has control over that other person, or if the other person has control over the first-mentioned person, or if both persons are controlled by another person or persons;

(iv) a body of persons is connected with another person if that person, or persons connected with him or her, have control of that body of persons, or the person and persons connected with him or her together have control of it;

(v) a body of persons is connected with another body of persons—

(I) if the same person has control of both or a person has control of one and persons connected with that person or that person and persons connected with that person have control of the other,

(II) if a group of 2 or more persons has control of each body of persons and the groups either consist of the same persons or could be regarded as consisting of the same persons by treating (in one or more cases) a member of either group as replaced by a person with whom he or she is connected,

(III) if both bodies of persons act in pursuit of a common purpose,

(IV) if any person or any group of persons or groups of persons having a reasonable commonality of identity have or had the means or power, either directly or indirectly, to determine the activities carried on or to be carried on by both bodies of persons, or

(V) if both bodies of persons are under the control of any person or group of persons or groups of persons having a reasonable commonality of identity;

(vi) a person in the capacity as trustee of a settlement is connected with—

(I) any person who in relation to the settlement is a settlor, or

(II) any person who is a beneficiary under the settlement.

(4) A landlord’s option to tax may not be exercised in respect of all or part of a house or apartment or other similar establishment to the extent that those immovable goods are used or to be used for residential purposes, including any such letting—

(a) governed by the Residential Tenancies Act 2004 ,

(b) governed by the Housing (Rent Books) Regulations 1993 ( S.I. No. 146 of 1993 ),

(c) governed by section 10 of the Housing Act 1988 ,

(d) of a dwelling to which Part II of the Housing (Private Rented Dwellings) Act 1982 applies, or

(e) of accommodation which is provided as a temporary dwelling for emergency residential purposes.

(5) A landlord’s option to tax, once exercised, shall immediately cease to have effect to the extent that the immovable goods which are the subject of the letting to which the option applies come to be used for residential purposes which fall within subsection (4).

Valuation of an interest in immovable goods.

[VATA s. 10(9) (in part) and (10) (in part)]

98.—(1) In this section—

“interest”, in relation to immovable goods, shall be construed in accordance with section 93 (1);

“open market value” has the meaning assigned to it by section 36 .

(2)(a) Where the Revenue Commissioners wish to ascertain the open market value of an interest in immovable goods, they may authorise a person to inspect the immovable goods and to report to them the open market value of that interest for the purposes of this Act, and a person having custody or possession of those goods shall permit the person so authorised to inspect the goods at such reasonable times as the Commissioners consider necessary.

(b) Where the Revenue Commissioners require a valuation to be made by a person named by them, the costs of that valuation shall be defrayed by the Commissioners.

PART 12

Refunds and Repayments of Tax

General provisions on refund of tax.

[VATA s. 20(1) to (1B), (4), (6) and (7)]

99.—(1) Subject to subsections (2) and (3), where in relation to a return lodged under Chapter 3 of Part 9 or a claim made in accordance with regulations, it is shown to the satisfaction of the Revenue Commissioners that, as respects any taxable period, the amount of tax (if any) actually paid to the Collector-General in accordance with Chapter 3 of Part 9 together with the amount of tax (if any) which qualified for deduction under Chapter 1 of Part 8 exceeds the tax (if any) which would properly be payable if no deduction were made under Chapter 1 of Part 8 , the Commissioners shall refund the amount of the excess less any sums previously refunded under this subsection or repaid under Chapter 1 of Part 8 and may include in the amount refunded any interest which has been paid under section 114 .

(2) Where the Revenue Commissioners apply section 15 to a number of persons, the Commissioners may defer repayment of all or part of any tax refundable under subsection (1) to any one or more of those persons prior to the application of that section if any one or more of those persons have not furnished all returns and remitted all amounts of tax referred to in section 76 or 77 , as may be appropriate, at the time of such application.

(3)(a) Subject to paragraph (b), the Revenue Commissioners may, where it appears requisite to them to do so for the protection of the revenue, require as a condition for making a refund in accordance with subsection (1) the giving of security of such amount and in such manner and form as they may determine.

(b) The amount of security referred to in paragraph (a) shall not, in any particular case, exceed the amount to be refunded.

(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.

(5) Where the Revenue Commissioners refund any amount due under subsection (1) or section 100 , they may, if they so determine, refund any such amount directly into an account, specified by the person to whom the amount is due, in a financial institution.

(6) The Revenue Commissioners shall not refund any amount of tax except as provided for in this Act or any order or regulations made under this Act.

Unjust enrichment.

[VATA s. 20(5)]

100.—(1) Where, due to a mistaken assumption in the operation of the tax, whether that mistaken assumption was made by an accountable person, any other person or the Revenue Commissioners, a person—

(a) accounted, in a return furnished to the Revenue Commissioners, for an amount of tax for which that person was not properly accountable,

(b) did not, because that person’s supplies of goods and services were treated as exempted activities, furnish a return to the Revenue Commissioners and, therefore, did not receive a refund of an amount of tax in accordance with section 99 (1), or

(c) did not deduct an amount of tax in respect of qualifying activities, within the meaning of section 59 (1), which that person was entitled to deduct,

then, in respect of the total amount of tax referred to in paragraph (a), (b) or (c) (in this section referred to as the “overpaid amount”), that person may claim a refund of the overpaid amount and the Revenue Commissioners shall, subject to this section, refund to the claimant the overpaid amount unless they determine that the refund of that overpaid amount or part thereof would result in the unjust enrichment of the claimant.

(2) A person who claims a refund of an overpaid amount under this section shall—

(a) make that claim in writing setting out full details of the circumstances of the case and identifying the overpaid amount in respect of each taxable period to which the claim relates, and

(b) furnish such relevant documentation to support the claim as the Revenue Commissioners may request.

(3)(a) For the purposes of determining whether a refund of an overpaid amount or part thereof would result in the unjust enrichment of a claimant, the Revenue Commissioners shall have regard to—

(i) the extent to which the cost of the overpaid amount was, for practical purposes, passed on by that claimant to other persons in the price charged by the claimant for goods or services supplied by the claimant,

(ii) any net loss of profits which they have reason to believe, based on their own analysis and on any information that may be provided to them by that claimant, was borne by the claimant due to the mistaken assumption made in the operation of the tax, and