S.I. No. 363/1995 - European Communities (Value-Added Tax) Regulations, 1995.

S.I. No. 363 of 1995.

EUROPEAN COMMUNITIES (VALUE-ADDED TAX) REGULATIONS, 1995.

I, RUAIRÍ QUINN, Minister for Finance, in exercise of the powers conferred on me by section 3 of the European Communities Act, 1972 (No. 27 of 1972), and for the purpose of giving effect to provisions of Council Directive No. 95/7/EC of 10 April 1995*, hereby make the following regulations:

*O.J. No. L102, 5 May 1995, p.18.

1. (1) These Regulations may be cited as the European Communities (Value-Added Tax) Regulations, 1995.

(2) These Regulations shall be construed together with the Value-Added Tax Acts, 1972 to 1995.

2. These Regulations shall come into operation on the 1st day of January, 1996.

3. In these Regulations—

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

"the Act of 1978" means the Value-Added Tax (Amendment) Act, 1978 ;

"the Act of 1992" means the Finance Act, 1992 .

4. Section 1 of the Principal Act is hereby amended by the insertion after the definition of "Community" of the following definitions:

"'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;".

5. Section 3 of the Principal Act is hereby amended in subsection (1)—

( a ) by the substitution of the following paragraph for paragraph (c):

"(c) 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,",

and

( b ) in paragraph (g)—

(i) by the deletion of subparagraph (iii), and

(ii) by the addition of the following proviso to subparagraph (iiia):

"Provided that the goods which were so transferred by the person are, after being worked upon, returned to that person in the State,".

6. Section 5 (inserted by the Act of 1978) of the Principal Act is hereby amended—

( a ) in paragraph (c) of subsection (6)—

(i) by the insertion in subparagraph (iii) after "movable goods" of "except where the provisions of subparagraph (iv) of paragraph (f) apply,", and

(ii) by the insertion in subparagraph (iv) after "movable goods" of ", including contract work, except where the provisions of subparagraph (iv) of paragraph (f) apply",

and

( b ) in paragraph (f) of subsection (6), by the insertion of the following subparagraph after subparagraph (iii):

"(iv) valuation of or work (including contract work) on movable goods, in cases where the goods are dispatched or transported out of the Member State where the valuation or work was physically carried out.".

7. Section 11 of the Principal Act is hereby amended by the insertion of the following subsection after subsection (1AA):

"(1AB) Notwithstanding subsection (1), 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:

Provided that this subsection shall not apply to a supply of contract work in the circumstances specified in paragraph (xvi) of the Second Schedule.".

8. Section 15 (inserted by the Act of 1978) of the Principal Act is hereby amended in subsection (3) by the insertion after "duties" of ", 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,".

9. The Second Schedule to the Principal Act is hereby amended by the insertion of the following paragraph after paragraph (xvi):

"(xvia) the supply of transport services relating to the importation of goods where the value of such services is included in the taxable amount in accordance with section 15 (3);".

10. The Sixth Schedule (inserted by the Act of 1992) to the Principal Act is hereby amended in subparagraph (b) of paragraph (xviii) by the insertion after "other than" of "contract work or".

GIVEN under my Official Seal, this 21st day of December, 1995.

RUAIRÍ QUINN

Minister for Finance.

EXPLANATORY NOTE

These Regulations transpose into the VAT Act, 1972 certain provisions of Council Directive No. 95/7/EC, which amends the Council Directive No. 77/388/EEC. The areas affected are contract work, valuation of and work on movable goods and transport costs following importation. These Regulations come into effect on 1 January, 1996.