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13 1994

FINANCE ACT, 1994

PART III

Value-Added Tax

Interpretation ( Part III ).

90. —In this Part—

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 1982” means the Finance Act, 1982 ;

the Act of 1989” means the Finance Act, 1989 ;

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

Amendment of section 1 (interpretation) of Principal Act.

91. —Section 1 of the Principal Act is hereby amended in subsection (1), in subparagraph (b) of the definition of “new means of transport” (inserted by the Act of 1992):

(a) by the substitution of the following clause for clause (i):

“(i) which in the case of vessels and aircraft were supplied three months or less after the date of first entry into service and in the case of land vehicles were supplied six months or less after the date of first entry into service, or”,

and

(b) by the substitution in clause (ii) of “6,000 kilometres” for “3,000 kilometres”.

Amendment of section 3 (supply of goods) of Principal Act.

92. —Section 3 of the Principal Act is hereby amended in subparagraph (ii) of paragraph (g) (inserted by the Act of 1992) of subsection (1) by the insertion after “(va)” of “, (vb)”.

Person liable to pay tax in relation to certain supplies of immovable goods.

93. —The Principal Act is hereby amended by the insertion of the following section after section 4:

“4A. (1) Subject to the provisions of subsection (3), where tax is chargeable in respect of the letting of immovable goods which is deemed to be a supply of goods in accordance with section 4 and the lessee would, but for the operation of this section, have been entitled to claim a deduction under section 12 (1) (a) (i) for all the said tax borne in relation to that supply, the lessor shall not be liable to pay the said tax and, in that case, the lessee shall be liable to pay the said tax as if the lessee had supplied the goods in the course or furtherance of business.

(2) Where, in relation to a supply, the lessor and the lessee wish the provisions of subsection (1) to apply they shall—

(a) complete such application form as may be provided by the Revenue Commissioners for that purpose,

(b) certify the particulars shown on such form to be correct, and

(c) submit to the Revenue Commissioners the completed and certified application form, together with such further information in support of the application as may be requested by the said Commissioners.

(3) Where, in relation to a supply of goods referred to in subsection (1), the lessor and lessee have furnished the particulars referred to in subsection (2), the Revenue Commissioners shall, where they are satisfied that it is in order to apply the provisions in subsection (1) in relation to that supply, notify the lessor and the lessee by notice in writing that the provisions of subsection (1) are to be applied in relation to that supply.

(4) Where the provisions of subsection (1) apply in relation to a supply, the invoice issued by the lessor in accordance with section 17 shall show the following endorsement in lieu of the amount of tax chargeable:

‘In accordance with section 4A of the Value-Added Tax Act, 1972 , the lessee is liable for the value-added tax of £X.’,

and, in that endorsement, the lessor shall substitute the amount of tax chargeable in respect of that supply of goods for ‘£X’.

(5) Every notification received by a taxable person, which has been issued to that person by the Revenue Commissioners in accordance with subsection (3), shall be part of the records which that person is required to keep in accordance with section 16.

(6) For the purposes of this section, and subject to the direction and control of the Revenue Commissioners, any power, function or duty conferred or imposed on them may be exercised or performed on their behalf by an officer of the Revenue Commissioners.

(7) In this section—

lessee’ means the person who receives the goods referred to in subsection (1);

lessor’ means the person who supplies the goods referred to in subsection (1).”.

Amendment of section 8 (taxable persons) of Principal Act.

94. —Section 8 of the Principal Act is here by amended—

(a) in subparagraph (iii) of paragraph (e) of subsection (1A) (inserted by the Finance Act, 1993 ) by the substitution of “specified in the First Schedule” for “specified in paragraph (vi), (vii), (xxii) or (xxiii) of the First Schedule”,

(b) in subsection (3) (inserted by the Act of 1992) by the substitution—

(i) in paragraph (a) of “£20,000” for “£15,000”,

(ii) in paragraph (b) (ii) of the following clause for clause (II):

“(II) supplies of other goods and services the total consideration for which is such that such person would not, because of the provisions of paragraph (c) or (e), be a taxable person if such supplies were the only supplies made by such person,”,

(iii) in paragraph (c) (i) of “£40,000” for “£32,000”, and

(iv) in paragraph (e) of “£20,000” for “£15,000”,

(c) in subsection (3A) (inserted by the Act of 1982) by the substitution of “£20,000” for “£15,000” (inserted by the Act of 1989), and

(d) in subsection (9) (inserted by the Act of 1978), in paragraph (b) of the definition of “farmer” (inserted by the Act of 1982)—

(i) by the substitution in subparagraph (ii) of “£20,000” for “£15,000” (inserted by the Act of 1989),

and

(ii) by the substitution of the following subparagraph for subparagraph (iii):

“(iii) supplies of goods and services other than those referred to in subparagraphs (i) and (ii) or paragraph (a), the total consideration for which is such that such person would not, because of the provisions of paragraph (c) or (e) of subsection (3), be a taxable person if such supplies were the only supplies made by such person.”.

Amendment of section 10 (amount on which tax is chargeable) of Principal Act.

95. —Section 10 of the Principal Act is hereby amended in paragraph (c) of subsection (3) by the insertion of the following proviso to that paragraph:

“Provided that in any event this paragraph shall not apply in the case of the letting of immovable goods which is a taxable supply of goods in accordance with section 4.”.

Amendment of section 12 (deductions for tax borne or paid) of Principal Act.

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

(a) in paragraph (a) of subsection (1) by the insertion of the following subparagraph after subparagraph (iiia) (inserted by the Finance Act, 1991 ):

“(iiib) the tax chargeable during the period, being tax for which he is liable by virtue of section 4A (1), in respect of goods received by him,”,

and

(b) in subsection (3)—

(i) in paragraph (a) by the insertion of the following subparagraph after subparagraph (i):

“(ia) expenditure incurred by the taxable person on food or drink, or accommodation or other entertainment services, where such expenditure forms all or part of the cost of providing an advertising service in respect of which tax is due and payable by the taxable person,”,

and

(ii) by the insertion of the following paragraphs after paragraph (b):

“(c) In subparagraph (i) of paragraph (a), reference to the provision of accommodation includes expenditure by the taxable person on a building, including the fitting out of such building, to provide such accommodation.

(d) In subparagraph (ii) of paragraph (a), ‘entertainment expenses’ includes expenditure on a building or facility, including the fitting out of such building or facility, to provide such entertainment.”.

Amendment of section 14 (determination of tax due by reference to cash receipts) of Principal Act.

97. —Section 14 (inserted by the Act of 1978) of the Principal Act is hereby amended—

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

“(1) A person who satisfies the Revenue Commissioners that—

(a) taking one period with another, not less than 90 per cent. of such person's turnover is derived from taxable supplies to persons who are not registered persons, or

(b) the total consideration which such person is entitled to receive in respect of such person's taxable supplies has not exceeded and is not likely to exceed £250,000 in any continuous period of twelve months,

may, in accordance with regulations, be authorised to determine the amount of tax which becomes due by such person during any taxable period (or part thereof) during which the authorisation has effect by reference to the amount of the moneys which such person receives during such taxable period (or part thereof) in respect of taxable supplies.”,

and

(b) in subsection (2)—

(i) by the deletion of “paragraph (a) of”, and

(ii) by the substitution of “that subsection” for “the said paragraphs (a)”.

Amendment of section 27 (fraudulent returns, etc.) of Principal Act.

98. —Section 27 of the Principal Act is hereby amended by the insertion in subsection (9A) (inserted by the Act of 1992) after paragraph (3) of the following:

“(4) For the purposes of subparagraph (b) of paragraph (1), ‘the declaration of an incorrect registration number’ means—

(a) the declaration by a person of another person's registration number,

(b) the declaration by a person of a number which is not an actual registration number which he purports to be his registration number,

(c) the declaration by a person of a registration number which was obtained from the Revenue Commissioners by supplying incorrect information, or

(d) the declaration by a person of a registration number which was obtained from the Revenue Commissioners for the purposes of acquiring goods without payment of value-added tax referred to in Council Directive No. 77/388/EEC of 17 May, 1977, and not for any bona fide business purpose.”.

Amendment of First Schedule to Principal Act.

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

(a) in paragraph (ix) by the insertion after “excluding” of “the services of loss adjusters and excluding”, and

(b) in paragraph (xv) (inserted by the Finance Act, 1980 ) by the insertion after “the Finance Act, 1926 ,” of “of bets of the kind referred to in section 89 of the Finance Act, 1994,”.

Amendment of Second Schedule to Principal Act.

100. —The Second Schedule (inserted by the Finance Act, 1976 ) to the Principal Act is hereby amended by the substitution of the following paragraph for paragraph (ia) (inserted by the Act of 1992):

“(ia) subject to such conditions and in such amounts as may be specified in regulations, the supply of goods—

(a) to travellers departing the State, in a tax-free shop approved by the Revenue Commissioners, or

(b) to travellers on board vessels or aircraft, where the goods are deemed to be supplied in the State in accordance with section 3 (6) (cc);”

Amendment of Sixth Schedule to Principal Act.

101. —The Sixth Schedule (inserted by the Act of 1992) to the Principal Act is hereby amended—

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

“(vii) amusement services of the kind normally supplied in fairgrounds or amusement parks:

Provided that this paragraph shall not apply to—

(I) services consisting of dances,

(II) services consisting of circuses,

(III) services consisting of gaming, as defined in section 2 of the Gaming and Lotteries Act, 1956 (including services provided by means of a gaming machine of the kind referred to in section 43 of the Finance Act, 1975 ), or

(IV) services provided by means of an amusement machine of the kind referred to in section 120 of the Finance Act, 1992 ;”,

(b) in paragraph (x) by the insertion after “services” of “of a kind”, and

(c) in paragraph (xi) by the substitution in subparagraph (ai) of “(other than farm accountancy or farm management services)” for “(not being services of the kind specified in paragraph (xxii) of the Seventh Schedule)”.