Value-Added Tax Act, 1972

Rendering of services.

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

(2) The rendering of a service by a person for the purposes of any business activity in which he engages shall, subject to regulations, be deemed, for the purposes of this Act, to be the rendering of a service in the course of business.

(3) The place where a service is rendered shall be deemed, for the purposes of this Act, to be the place where the act is performed or the situation is tolerated or, in the case of the omission of an act, the place where the person responsible for the omission resides or is established:

Provided that in the case of a service rendered by a person who, by virtue of section 8 (8), is not an accountable person to an unregistered person residing or established within the State, the following provisions shall apply if the service is rendered for the purposes of any business activities of the unregistered person carried on within the State:

(a) the service shall be deemed to be rendered at the place where the person to whom it is rendered resides or is established, and

(b) the person to whom the service is rendered shall, in relation to the said service, be an accountable person and shall be accountable for and liable to pay the tax charged under section 2 (1) (a) in respect of such rendering.

(4) (a) A person who satisfies the Revenue Commissioners—

(i) that he is engaged in business,

(ii) that by virtue of section 8 (8) he is not an accountable person,

(iii) that he has suffered tax on services rendered to him within the State for the purposes of the said business, and

(iv) that the said services were not rendered to him in his capacity as agent for or otherwise on behalf of, and were not used by him in the course of rendering services to, another person residing or established within the State who, if the first-mentioned services had been rendered directly to that other person, would not be entitled to a deduction under section 12 in respect of the tax borne or paid in respect of them,

shall, subject to paragraph (b) and section 20, be entitled to be repaid the tax borne on the services.

(b) The provisions of section 12 (3) shall apply in relation to a computation under this section of the amount of tax repayable to a person as if the person were an accountable person and the computation related to a claim for a deduction under the said section 12.

(5) (a) Notwithstanding anything in subsection (1), where the value of movable goods supplied under an agreement for the rendering of services exceeds two-thirds of the total consideration under the agreement for the supply of those goods and the rendering of the services, other than transport services, in relation to them, such consideration shall be deemed, for the purposes of this Act, to be referable solely to the delivery of the goods and tax shall be charged at the appropriate rate or rates specified in section 11 on the basis of any apportionment of such total consideration made in accordance with paragraph (b).

(b) Where goods of different kinds are supplied under an agreement of the kind referred to in paragraph (a), the amount of the consideration referable to the delivery of goods of each kind shall be ascertained for the purposes of that paragraph by apportioning the total consideration in proportion to the value of the goods of each kind supplied under the agreement.