S.I. No. 121/1988 - Value-Added Tax (Second-Hand Motor Vehicles) Regulations, 1988.

S.I. No. 121 of 1988.


The Revenue Commissioners, in exercise of the powers conferred on them by sections 12 (1) and 32 of the Value-Added Tax Act, 1972 (No. 22 of 1972), and with the consent of the Minister for Finance, hereby make the following Regulations:

1. These Regulations may be cited as the Value-Added Tax (Second-hand Motor Vehicles) Regulations, 1988.

2. These Regulations shall be deemed to have come into operation on the 1st day of November, 1987.

3. (1) In these Regulations—

"the Act" means the Value-Added Tax Act, 1972 ;

"qualifying vehicle" means a second-hand mechanically propelled vehicle, designed and constructed for the conveyance by road of persons or goods, which is acquired in the State for resale in the State.

(2) In these Regulations, a reference to a Regulation is to a Regulation of these Regulations and a reference to a paragraph, subparagraph or clause is to a paragraph, subparagraph or clause of the provision in which the reference occurs, unless it is indicated that reference to some other provision is intended.

4. (1) Section 12 (1) (a) (vi) (inserted by the Finance Act, 1987 (No. 10 of 1987)) of the Act shall have effect subject to, and insofar as is provided for in, these Regulations.

(2) For the purposes of giving effect by these Regulations to the said section 12 (1) (a) (vi), each of the following terms in that section shall have the meaning ascribed to it in this Regulation, that is to say—

"the amount of tax, as defined" means the amount obtained by multiplying the consideration payable in each case by a fraction, the numerator of which is the number of percentage points for the time being specified in section 11 (1) (a) of the Act and the denominator of which is the said number of percentage points and one hundred;

"specified second-hand goods or categories of second-hand goods" means qualifying vehicles.

5. A taxable person may not deduct an amount of tax in accordance with section 12 (1) (a) (vi) of the Act unless the following conditions, and such other conditions as the Revenue Commissioners may, from time to time, impose, are fulfilled—

( a ) he is in possession of an invoice and a declaration issued in accordance with Regulation 6 in respect of the supply to him of the qualifying vehicle concerned,

( b ) such deduction is made in computing the amount of tax payable by him in respect of the taxable period in which the qualifying vehicle is resold by him: provided that such taxable period commences not later than the last day of the period of three hundred and sixty five days next following the date on which the qualifying vehicle is acquired by him,

( c ) the amount of such deduction is not in excess of the amount of tax chargeable on the resale by him of the said vehicle: provided that in relation to the calculation of such amount of tax chargeable, the proviso to section 10 (2) of the Act, if it were to apply, were, for the purposes of this Regulation, disregarded.

6. A person who supplies a qualifying vehicle to a taxable person shall—

( a ) on the date of such supply, or within the ten days next following that date, issue to the taxable person, who acquires that vehicle, an invoice in respect of that supply, which sets out the following particulars:

(i) the name and address of the person who is supplying the vehicle to which the invoice relates,

(ii) the name, address and tax registration number of the said taxable person,

(iii) the date upon which the invoice is issued,

(iv) the date upon which the vehicle to which the invoice relates is supplied,

(v) a description of the vehicle, including details of the make, model, engine number, registration number and year of manufacture,

(vi) the total consideration for the supply, and

(vii) the signature or acknowledgement of the person by whom the invoice is issued,

( b ) sign or acknowledge a declaration to the effect that—

(i) he is not a taxable person,


(ii) he is a taxable person and—

(I) the said qualifying vehicle was used by him for the purposes of a business carried on by him,

(II) he has borne tax on the acquisition or application of the vehicle, and

(III) the vehicle is of such a kind or was used in such circumstances that no part of the said tax was deductible under section 12 of the Act,

and the taxable person to whom the qualifying vehicle is supplied shall provide the form for the purpose of the said invoice and said declaration, enter the appropriate particulars thereon, and give a copy of the invoice and declaration to the supplier of the vehicle.

7. Every taxable person shall, in relation to a qualifying vehicle which he has acquired in the circumstances specified in section 12 (1) (a) (vi) of the Act, keep full and true records, entered up to date, of the acquisition and resale of the said vehicle, together with cross-references between all such records.

GIVEN this 9th day of June, 1988.


Revenue Commissioner.

The Minister for Finance hereby consents to the making of the foregoing Regulations.

GIVEN under the Official Seal of the Minister for Finance, this 9th day of June, 1988.


Minister for Finance.


These Regulations, which have effect from 1 November 1987, provide, subject to conditions, for VAT relief in relation to the acquisition, for the purposes of resale, by taxable persons from non-taxable persons (or from taxable persons in certain circumstances) of certain second-hand road motor vehicles.