Value-Added Tax (Amendment) Act, 1978

Amendment of section 3 of Principal Act.

4.—Section 3 of the Principal Act is hereby amended—

(a) by the substitution in subsection (1) of “In this Act ‘supply’, in relation to goods, means—” for “In this Act ‘delivery’, in relation to goods, shall, subject to subsection (1A), include—”, and of the following paragraphs for paragraphs (e) and (f):

“(e) the application (otherwise than by way of disposal to another person) by a person for the purposes of any business carried on by him of the goods, being goods which were developed, constructed, assembled, manufactured, produced, extracted, purchased or imported by him or by another person on his behalf, except where tax chargeable in relation to the application would, if it were charged, be wholly deductible under section 12, and

(f) the appropriation by a taxable person for any purpose other than the purpose of his business or the disposal free of charge of the goods where tax chargeable in relation to the goods—

(i) upon their acquisition by the taxable person, if they had been so acquired, or

(ii) upon their development, construction, assembly, manufacture, production, extraction, importation or application under paragraph (e),

as the case may be, was wholly or partly deductible under section 12,”,

(b) by the substitution of the following subsection for subsection (1A):

“(1A) Anything which is a supply of goods by virtue of paragraph (e) or (f) of subsection (1) shall be deemed, for the purposes of this Act, to have been effected for consideration in the course or furtherance of the business concerned:

Provided, however, that the following shall not be deemed to have been effected for consideration, that is to say:

(a) a gift of goods made in the course or furtherance of the business (otherwise than as one forming part of a series or succession of gifts made to the same person) the cost of which to the donor does not exceed a sum specified for that purpose in regulations,

(b) the gift, in reasonable quantity, to the actual or potential customer, of industrial samples in a form not ordinarily available for sale to the public.”,

(c) by the insertion of the following subsection:

“(1B) The provision of electricity, gas and any form of power, heat, refrigeration or ventilation shall be deemed, for the purposes of this Act, to be a supply of goods and not a supply of services”, and

(d) by the substitution for subsection (3) of the following subsection:

“(3) (a) The supply by auction of goods being—

(i) livestock, horses, greyhounds, vegetables, fruit, flowers, poultry, eggs or fish, or

(ii) immovable goods supplied in circumstances in which tax is not chargeable,

shall be deemed, for the purposes of this Act, to constitute a supply of the goods to and simultaneously by the auctioneer.

(b) The supply through an estate agent or other agent of—

(i) livestock, horses or greyhounds, or

(ii) immovable goods supplied in circumstances in which tax is not chargeable,

shall be deemed, for the purposes of this Act, to constitute a supply of the goods to and simultaneously by the agent.”.