PART III

Value-Added Tax

74. —In this Part—

“the Principal Act” means the Value-Added Tax Act, 1972 ;

“the Act of 1976” means the Finance Act, 1976 ;

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

“the Act of 1981” means the Finance (No. 2) Act, 1981 .

75. —Section 3 of the Principal Act is hereby amended by the substitution of the following subsection for subsection (3):

“(3) (a) The supply by auction of livestock, live horses, live greyhounds, vegetables, fruit, flowers, poultry, eggs or fish 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 agent of livestock, live horses or live greyhounds shall be deemed, for the purposes of this Act, to constitute a supply of the goods to and simultaneously by the agent.”.

76. —Section 5 of the Principal Act is hereby amended by the insertion after subsection (4) of the following subsection—

“(4A) Where services are supplied by a person and the person is not legally entitled to recover consideration in respect of or in relation to such supply but moneys are received in respect of or in relation to such supply, the services in question shall be deemed, for the purposes of this Act, to have been supplied for consideration and the moneys received shall be deemed to be consideration that the person who supplied the services in question became entitled to receive in respect of or in relation to the supply of those services.”.

77. —Section 8 of the Principal Act is hereby amended—

(a) by the substitution in subsection (3) (inserted by the Act of 1978) of the following paragraph for paragraph (b):

“(b) a person whose supplies of taxable goods or services consist exclusively of—

(i) supplies to taxable persons and persons to whom section 13 (3) applies of fish (not further processed than gutted, salted and frozen) which he has caught in the course of a sea-fishing business, or

(ii) supplies of the kind specified in subparagraph (i) and of either or both of the following, that is to say:

(I) supplies of machinery, plant or equipment which have been used by him in the course of a sea-fishing business, and

(II) supplies of other goods and services the total consideration for which has not exceeded and is not likely to exceed £15,000 in any continuous period of 12 months.”,

(b) by the insertion after subsection (3) of the following subsection:

“(3A) Where a person who supplies services consisting of the training of horses for racing, the consideration for which has exceeded £15,000 in any continuous period of 12 months, would, but for the supply of such services, be a farmer, he shall be deemed to be a taxable person only in respect of the supply of those services and, in the absence of an election, shall, in relation to the supply of any of the goods and services specified in paragraph (a) and subparagraphs (i) and (iii) of paragraph (b) of the definition of ‘farmer’ in subsection (9) (inserted by the Act of 1978), be deemed not to be a taxable person.”,

and

(c) by the substitution in subsection (9) for the definition of “farmer” of the following definition:

“‘farmer’ means a person who engages in at least one Annex A activity and—

(a) whose supplies consist exclusively of either or both of the following, that is to say:

(i) supplies of agricultural produce, or

(ii) supplies of agricultural services, or

(b) whose supplies consist exclusively of either or both of the supplies specified in paragraph (a) and of one or more of the following, that is to say:

(i) supplies of machinery, plant or equipment which has been used by him for the purposes of an Annex A activity,

(ii) supplies of services consisting of the training of horses for racing the total consideration for which has not exceeded and is not likely to exceed £15,000 in any continuous period of 12 months, or

(iii) supplies of goods and services, other than those referred to in subparagraphs (i) and (ii) or paragraph (a), the total consideration for which has not exceeded and is not likely to exceed £15,000 in any continuous period of 12 months.”.

78. —Section 10 (inserted by the Act of 1978) of the Principal Act is hereby amended by the insertion of the following subsection after subsection (4):

“(4A) Where goods chargeable with a duty of excise are supplied while warehoused, and before payment of the duty, to an unregistered person, the amount on which tax is chargeable in respect of the supply shall be increased by an amount equal to the amount of duty that would be payable in relation to the goods if the duty had become due at the time of the supply.”.

79. —(1) Section 11 of the Principal Act is hereby amended—

(a) in subsection (1) (inserted by the Act of 1978)—

(i) in paragraph (a), by the substitution of “18 per cent.” for “15 per cent.” (inserted by the Act of 1981),

(ii) in paragraph (b), by the substitution of “(xva)” for “(xv)”, and

(iii) in paragraph (c) (inserted by the Finance Act, 1980 ), by the substitution of “30 per cent.” for “25 per cent.” (inserted by the Act of 1981),

(b) in subsection (2)—

(i) in paragraph (b) (inserted by the Act of 1978), by the substitution of “16.67 per cent.” for “20 per cent.” (inserted by the Act of 1981), and

(ii) in paragraph (c) (inserted by the Act of 1981), by the substitution of “16.67 per cent.” for “20 per cent.”, and

(iii) by the insertion after the said paragraph (c) of the following paragraphs:

“(d) On the supply by an auctioneer, solicitor, estate agent or other agent of services directly related to the supply of immovable goods used for the purposes of an Annex A activity tax shall be chargeable at the rate specified in subsection (1) (a) on 16.67 per cent. of the total amount on which tax is chargeable and at the rate of zero per cent. on the balance of the said total amount.

(e) On the supply of farm accountancy services or farm management services tax shall be chargeable at the rate specified in subsection (1) (a) on 16.67 per cent. of the total amount on which tax is chargeable and at the rate of zero per cent. on the balance of the said total amount.”.

(2) This section other than subsection (1) (b) (iii) shall have, and be deemed to have had, effect as on and from the 1st day of May, 1982.

80. —Section 12 of the Principal Act is hereby amended—

(a) in subsection (1) (inserted by the Act of 1978), by the substitution of the following paragraph for paragraph (b):

“(b) in respect of goods imported by him in the period, the tax paid by him or deferred as established from the relevant customs documents kept by him in accordance with section 16 (3),”,

and

(b) in subsection (3) (inserted by the Act of 1978), in subparagraph (v) of paragraph (a), by the insertion after “his business” of “or for activities in relation to which he is, in accordance with section 8 (3A), deemed not to be a taxable person”.

81. —(1) Section 12A of the Principal Act (inserted by the Act of 1978) is hereby amended—

(a) in subsection (1), by the substitution of “1.8 per cent.” for “1.5 per cent.” (inserted by the Act of 1981), and

(b) by the substitution of the following subsection for subsection (2)—

“(2) In this Act ‘flat-rate farmer’ means a farmer who is not a taxable person and, in relation to the supplies specified in the definition of ‘farmer’ in section 8(9), includes a person who in accordance with section 8 (3A), is deemed not to be a taxable person.”.

(2) Subsection (1)(a) of this section shall have, and be deemed to have had, effect as on and from the 1st day of May, 1982.

82. —Section 13 of the Principal Act (inserted by the Act of 1978) is hereby amended by the deletion of subsections (4) and (5).

83. —Section 14 of the Principal Act (inserted by the Act of 1978) is hereby amended by the insertion in subsection (1) (b) after “of taxable services” of “(including services which, if they were supplied in such taxable period, would be taxable services)”.

84. —(1) Section 15 (inserted by the Act of 1978) of the Principal Act is hereby amended by—

(a) the substitution in subsection (2) of “(xva)” for “(xv)”, and

(b) the insertion after subsection (6) of the following subsection:

“(6A) Regulation 26 of the Value-Added Tax Regulations, 1979 (S.I. No. 63 of 1979), is hereby revoked and tax charged under section 2 (1) (b) shall, in accordance with the provisions of the Customs Consolidation Act, 1876, and of other law in force in the State relating to customs, as applied to tax by subsection (6) and regulations thereunder, be paid in the manner and at the time that it would have been payable if that regulation had not been made.”.

(2) Subsection (1)(a) shall have, and be deemed to have had, effect as on and from the 1st day of May, 1982.

85. —Section 16 of the Principal Act is hereby amended:

(a) in subsection (2), by the insertion after “such business” of “and, in respect of goods imported by him, copies, stamped on behalf of the Revenue Commissioners, of the relevant customs entries”, and

(b) in subsection (3)—

(i) by the deletion of “and invoices”,

(ii) by the insertion after “any books” of “invoices, copies, stamped on behalf of the Revenue Commissioners, of customs entries”, and

(iii) by the insertion after “the supply of goods or services” of “, or the importation of goods,”,

and the said subsections (other than the proviso to subsection (3)), as so amended, are set out in the Table to this section.

TABLE

(2) Every person, other than a taxable person, who supplied goods or services in the course or furtherance of any business shall keep all invoices issued to him in connection with the supply of goods or services to him for the purpose of such business and, in respect of goods imported by him, copies, stamped on behalf of the Revenue Commissioners, of the relevant customs entries.

(3) Records kept by a person pursuant to this section and any books, invoices, copies, stamped on behalf of the Revenue Commissioners, of customs entries, credit notes, debit notes, receipts, accounts, vouchers, bank statements or other documents whatsoever which relate to the supply of goods or services, or the importation of goods, by the person and are in the power, possession or procurement of the person, and in the case of any such book, invoice, credit note, debit note, receipt, account, voucher or other document which has been issued by the person to another person, any copy thereof which is in the power, possession or procurement of the person shall be retained in his power, possession or procurement for a period of six years from the date of the latest transaction to which the records or invoices or any of the other documents relate:

86. —Section 26 of the Principal Act is hereby amended—

(a) by the substitution of the following subsection for subsection (1):

“(1) A person who does not comply with section 9 (2), 11 (7), 12A, 16, 17, 18 (2) or 19 or any provision of regulations in regard to any matter to which the foregoing sections relate shall be liable to a penalty of £800.”,

(b) in subsection (2), by the substitution of “£500” for “£20”,

(c) in subsection (2A) (inserted by the Act of 1978), by the substitution of “£500” for “£20”,

(d) in subsection (3), by the substitution of “£500” for “£20”,

(e) in subsection (3A) (inserted by the Finance Act, 1973 ), by the substitution of “£800” for “£100”, and

(f) by the deletion of subsection (5).

87. —The First Schedule to the Principal Act (inserted by the Act of 1978) is hereby amended—

(a) by the deletion of paragraph (viii),

(b) by the substitution of the following subparagraph for subparagraph (b) of paragraph (ix):

“(b) the collection of insurance premiums,”,

and

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

“(x) services supplied in the course of their profession by veterinary surgeons;”.

88. —(1) The Second Schedule (inserted by the Act of 1976) to the Principal Act is hereby amended—

(a) by the substitution of the following subparagraph for subparagraph (b) of paragraph (i) (inserted by the Act of 1978):

“(b) by a registered person within the customs-free airport to another registered person within the customs-free airport;”,

and

(b) by the insertion after paragraph (xv) (inserted by the Finance Act, 1973 ) of the following paragraph:

“(xva) printed books and booklets including atlases but not including newspapers, periodicals, brochures, catalogues, programmes, books of stationery, cheque books, diaries, albums, books of stamps, of tickets or of coupons;”.

(2) This section, other than subsection (1)(a), shall have, and be deemed to have had, effect as on and from the 1st day of May, 1982.

89. —(1) Part I of the Third Schedule (inserted by the Act of 1976) to the Principal Act is hereby amended—

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

“(vii) printed books and booklets other than—

(I) those specified in paragraph (xva) of the Second Schedule to which section 11 applies, and

(II) books of stationery, cheque books, diaries, albums and books of stamps, of tickets or of coupons;”,

(b) by the insertion in paragraph (x) after subparagraph (r) of the following subparagraph:

“(rr) timber joinery; and doors, door frames, window frames, window panels, staircases and roofing trusses of any material,”,

and

(c) by the substitution of the following paragraphs for paragraph (xxxi) (inserted by the Act of 1978):

“(xxxi) gramophone records;

(xxxii) furniture, including sections and parts thereof and furniture in kit form, of the following descriptions, that is to say—

(a) beds, including cots and cradles, but not including baby carriages,

(b) chairs, stools, kneelers, couches, and similar goods,

(c) tables, dressing tables, wardrobes, chests of drawers, tallboys, presses, lockers, desks, and similar goods,

(d) cabinets, including cabinets specially constructed for radios, record players, speakers and television sets,

(e) playpens, safety screens, shelves, shelving and shelving units, serving trolleys, hat and coat stands, and similar stands,

but not including furniture constructed or adapted for the playing of games or for physical exercise, musical instruments, ornaments, lamps, ash trays, log boxes, coal scuttles and other hearth furniture or furniture which incorporates or is fitted with any machine or appliance;

(xxxiii) (a) floor coverings, blinds, curtains including curtain materials and parts and accessories for the manufacture of curtains, and similar furnishings, but not including wall or ceiling coverings,

(b) blankets, mattresses, sheets, pillows and other articles of bed clothing, towels and towelling material,

(c) carpet wool and canvas,

(d) fabrics, padding materials, trimming materials, webbing and springs and springing material of a kind normally used in the manufacture of furniture, and

(e) curtain rails, tracks and pelmets including parts, accessories and curtain cord, parts and accessories for blinds, stair nosings and carpet grips;

(xxxiv) coffins and other goods of a kind commonly used to hold the remains of the dead including materials and accessories commonly used in the manufacture of such goods and not commonly used for any other purposes.”.

(2) This section shall have, and be deemed to have had, effect as and from the 1st day of May, 1982.

90. —(1) In this section “qualifying service” means a service consisting of the supply, for the benefit of persons not resident in the State, under an agreement made before the 1st day of January, 1982, of sleeping accommodation, with or without board, or of motor cars upon hire, boats upon hire or entertainment, at charges fixed at the time of the making of the agreement, to persons carrying on the business of travel agent, tour operator or the hiring out of motor cars or boats.

(2) In respect of the taxable periods commencing on the 1st day of May, 1982, the 1st day of July, 1982, the 1st day of September, 1982, and the 1st day of November, 1982, notwithstanding the provisions of section 11 of the Principal Act (as amended by this Act), tax shall, in relation to the supply of a qualifying service, be, and be deemed to have been, chargeable, at the rate of 15 per cent.