Value-Added Tax Act, 1972

Special provisions for tax invoiced by farmers and fishermen.

13.—(1) Subject to subsection (2), where a person who carries on the business of farming or fishing and—

(a) who is not an accountable person under the provisions of section 8 (3) (a), and

(b) who is not an accountable person by election,

delivers goods or renders services to an accountable person, the first-mentioned person shall, subject to section 17 (2), issue to the accountable person an invoice, and the accountable person shall be entitled to treat as tax deductible under section 12 an amount equal to 1 per cent. of the consideration stated in the invoice, including any tax stated separately therein.

(2) Subsection (1) shall apply if, but only if—

(a) the goods in question are goods of a kind specified in subparagraph (i) or (ii) of section 8 (3) (a) or the services in question are services of a kind specified in subparagraph (iii) of the said section 8 (3) (a), and

(b) a deduction could have been claimed under section 12 by the accountable person if such goods or services had been delivered or rendered to him by another accountable person and an invoice charging the appropriate tax had been issued in accordance with regulations.

(3) (a) The Minister may by order vary the percentage of consideration which may, in accordance with subsection (1), be treated as tax deductible under section 12 and may by order make corresponding variations in the percentage of total consideration specified in section 10 (7) on which tax is chargeable on the delivery of livestock and in the percentage of value specified in section 15 (4) (b) on which tax is chargeable on the importation of livestock.

(b) The Minister may by order amend or revoke an order under this subsection, including this paragraph,

(c) An order under this subsection shall be laid before Dáil Éireann as soon as may be after it has been made and, if a resolution annulling the order is passed by Dáil Éireann within the next twenty-one days on which Dáil Éireann has sat after the order is laid before it, the order shall be annulled accordingly, but without prejudice to the validity of anything previously done thereunder.

(4) For the purposes of this section “farming or fishing” does not include—

(a) the operation of a nursery or garden for the sale of produce,

(b) commercial production of poultry or eggs,

(c) fur farming, or

(d) fish farming,

by a person other than a person to whom paragraph (c) or (d) of section 8 (3) applies.