Value-Added Tax Act, 1972

Payment based on cash receipts.

14.—(1) (a) A person who satisfies the Revenue Commissioners that, taking one taxable period with another, he derives not less than 90 per cent. of the total amount on which, but for this section, tax payable by him would be chargeable by virtue of section 2 (1) (a), from the delivery of taxable goods to persons who are not registered persons or the rendering of taxable services to such persons, may, in accordance with regulations, be authorised to treat the moneys which he has received in respect of the delivery of taxable goods or rendering of taxable services as the consideration in respect of such delivery of goods or rendering of services and, during the period during which he is so authorised, references in this Act to consideration shall, in relation to the person so authorised, be construed, for the purposes of section 10 (1), as references to moneys which he has actually received.

(b) A person, other than a person to whom paragraph (a) applies, may, in accordance with regulations, be authorised to treat the moneys which he has received in respect of the rendering of taxable services as the consideration for the rendering of such services, and during the period during which he is so authorised, references in this Act to consideration shall, in relation to services rendered by the person so authorised, be construed, for the purposes of section 10 (1), as references to moneys which he has actually received.

(2) Where a person, who for any period of time is authorised under subsection (1) to treat the moneys which he has received for the delivery of goods or the rendering of services as the consideration for such delivery or rendering, ceases to be so authorised or ceases to be an accountable person, his liability for the taxable period in which the cesser occurs shall, in accordance with regulations, be adjusted by reference to the amounts, if any, due to him at the commencement and end of that period of time in respect of such deliveries and such rendering of services.