S.I. No. 196/1999 - European Communities (Value-Added Tax) Regulations, 1999

I, CHARLIE McCREEVY, 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 certain provisions of Council Directive No. 77/388/EEC of 17 May 1977* on the harmonization of the laws of the Member States relating to turnover taxes — Common system of value-added tax: uniform basis of assessment, in consequence of the cessor of Article 28k thereof, hereby make the following Regulations:

1. (1) These Regulations may be cited as the European Communities (Value-Added Tax) Regulations, 1999.

(2) These Regulations shall be construed together with the Value-Added Tax Acts, 1972 to 1999.

2. These Regulations shall come into operation on the 1st day of July, 1999.

3. In these Regulations “the Principal Act” means the Value-Added Tax Act, 1972 (No. 22 of 1972).

4. Section 32 of the Principal Act is hereby amended in paragraph (ag) (inserted by the Finance Act, 1992 (No. 9 of 1992)) of subsection (1) by the deletion of “by tax-free shops”.

5. The Second Schedule to the Principal Act is hereby amended—

(a) by the substitution of the following paragraph for paragraph (ia) (inserted by the Finance Act, 1994 (No. 13 of 1994));

(ia) subject to such conditions and in such amounts as may be specified in regulations—

(a) the supply of goods, in a tax-free shop approved by the Revenue Commissioners, to travellers departing the State for a place outside the Community, or

(b) the supply, other than by means of a vending machine, of food, drink and tobacco products on board a vessel or aircraft to passengers departing the State for another Member State, for consumption on board that vessel or aircraft;”,


(b) by the insertion in paragraph (vb) (inserted by the Finance Act, 1993 (No. 13 of 1993)) after “paragraph (v)” of “but not including goods for supply on board such vessels or aircraft to passengers for the purpose of those goods being carried off such vessels or aircraft”.


GIVEN under my Official Seal, this 30th day of June, 1999.


Minister for Finance.


(This note is not part of the Instrument and does not purport to be a legal interpretation.)

These Regulations amend the VAT Act, 1972, so as to give effect to the abolition of duty-free sales to passengers making intra-EU journeys after 30 June, 1999. From then on sales of goods to such passengers will be liable to VAT at the appropriate rate. However, certain food, drink and tobacco products supplied to passengers for consumption on board a vessel or an aircraft during an intra-EU journey will continue to be liable to VAT at the zero rate.

Duty-free sales will, however, continue to apply in respect of journeys outside the Community.

* O.J. No. L145, 13 June, 1977, p.1.