PART 3

Value-Added Tax

92 .— In this Part “Principal Act” means the Value-Added Tax Act 1972 .

93 .— (1) Section 1 of the Principal Act is amended in subsection (1)—

(a) by inserting the following after the definition of “agricultural service”:

“ ‘ancillary supply’ means a supply, forming part of a composite supply, which is not physically and economically dissociable from a principal supply and is capable of being supplied only in the context of the better enjoyment of that principal supply;”,

(b) by inserting the following after the definition of “Community”:

“ ‘composite supply’ means a supply made by a taxable person to a customer comprising two or more supplies of goods or services or any combination of these, supplied in conjunction with each other, one of which is a principal supply;”,

(c) by inserting the following after the definition of “importation of goods”:

“ ‘individual supply’ means a supply of goods or services which is a constituent part of a multiple supply and which is physically and economically dissociable from the other goods or services forming part of that multiple supply, and is capable of being supplied as a good or service in its own right;”,

(d) by inserting the following after the definition of “movable goods”:

“ ‘multiple supply’ means two or more individual supplies made by a taxable person to a customer where those supplies are made in conjunction with each other for a total consideration covering all those individual supplies, and where those individual supplies do not constitute a composite supply;”,

and

(e) by inserting the following after the definition of “a person registered for value-added tax”:

“ ‘principal supply’ means the supply of goods or services which constitutes the predominant element of a composite supply and to which any other supply forming part of that composite supply is ancillary;”.

(2) Subsection (1) comes into operation on such day as the Minister for Finance may appoint by order.

94 .— Section 5 of the Principal Act is amended in subsection (3) by substituting the following for paragraphs (a) to (d):

“(a) the use of goods forming part of the assets of a business—

(i) for the private use of a taxable person or of such person’s staff, or

(ii) for any purposes other than those of the taxable person’s business,

where the tax on such goods is wholly or partly deductible,

(b) the supply of services carried out free of charge by a taxable person for such person’s own private use or that of the staff of such person or for any purposes other than those of such person’s business,

(c) the supply by a taxable person of services for the purposes of such person’s business where the tax on such services, were they supplied by another taxable person, would not be wholly deductible.”.

95 .— Section 8 of the Principal Act is amended—

(a) in subsections (3), (3A) and (9), with effect from 1 May 2006, by substituting “€27,500” for “€25,500” and by substituting “€55,000” for “€51,000” wherever it occurs, and

(b) in subsection (8) paragraph (a) by substituting “where it seems necessary or appropriate to them for the purpose of efficient and effective administration, including collection, of the tax” for “that it would be expedient in the interest of efficient administration of the tax”.

96 .— Section 10 of the Principal Act is amended in subsection (4)—

(a) by substituting “for the purposes of paragraph (a) or (b) of section 5(3)” for “for the purposes of section 5(3)”, and

(b) by inserting “, and the amount on which tax is chargeable in relation to a supply of services by virtue of regulations made for the purposes of section 5(3)(c) shall be the open market price of the services supplied” after “as the case may be”.

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

(a) in subsection (1B) by substituting the following for paragraph (c):

“(c) A determination under this subsection shall have effect for all the purposes of this Act—

(i) in relation to a taxable person who makes an application for the determination, as on and from the date which shall be specified for the purpose in the determination communicated to the taxable person in accordance with paragraph (e)(i), and

(ii) in relation to any other person, as on and from the date which shall be specified for the purpose in the determination as published in the Iris Oifigiúil.”,

and

(b) by substituting the following for subsection (3):

“(3) (a) Subject to section 10(8)—

(i) in the case of a composite supply, the tax chargeable on the total consideration which the taxable person is entitled to receive for that composite supply shall be at the rate specified in subsection (1) which is appropriate to the principal supply, but if that principal supply is an exempted activity, tax shall not be chargeable in respect of that composite supply,

(ii) in the case of a multiple supply, the tax chargeable on each individual supply in that multiple supply shall be at the rate specified in subsection (1) appropriate to each such individual supply and, in order to ascertain the taxable amount referable to each individual supply for the purpose of applying the appropriate rate thereto, the total consideration which the taxable person is entitled to receive in respect of that multiple supply shall be apportioned between those individual supplies in a way that correctly reflects the ratio which the value of each such individual supply bears to the total consideration for that multiple supply.

(b) In the case where a person acquires a composite supply or a multiple supply by means of an intra-Community acquisition, the provisions of this subsection shall apply to that acquisition.

(c) The Revenue Commissioners may make regulations as necessary specifying—

(i) the circumstances or conditions under which a supply may or may not be treated as an ancillary supply, a composite supply, an individual supply, a multiple supply or a principal supply,

(ii) the methods of apportionment which may be applied for the purposes of paragraphs (a) and (b),

(iii) a minimum amount, or an element of a supply, which may be disregarded for the purposes of applying this subsection.”.

(2) Paragraph (b) of subsection (1) comes into operation on such day as the Minister for Finance may appoint by order.

98 .— Section 12 of the Principal Act is amended in subsection (1)(b)—

(a) by substituting “the Community,” for “the Community, and” in subparagraph (ii)(II), and

(b) by inserting the following after subparagraph (ii):

“(iia) services consisting of the issue of new stocks, new shares, new debentures or other new securities by the taxable person in so far as such issue is made to raise capital for the purposes of the taxable person’s taxable supplies, and”.

99 .— (1) Section 32 of the Principal Act is amended—

(a) by substituting the following for subsection (1)(e):

“(e) (i) the manner in which any amount may be apportioned, including the methods of apportionment which may be applied for the purposes of paragraphs (a) and (b) of section 11(3),

(ii) the circumstances or conditions under which a supply may or may not be treated as an ancillary supply, a composite supply, an individual supply, a multiple supply or a principal supply,

(iii) a relatively small amount, or an element of a supply, which may be disregarded for the purposes of applying section 11(3);”,

and

(b) by inserting the following after subsection (2A):

“(2B) Regulations under this Act may contain such incidental, supplementary and consequential provisions as appear to the Revenue Commissioners to be necessary for the purposes of giving full effect to—

(a) Council Directive No. 77/388/EEC of 17 May 1977 ¹⁹ ,

(b) Council Directive No. 79/1072/EEC of 6 December 1979 ²⁰ ,

(c) Council Directive No. 86/560/EEC of 17 November 1986 ²¹ .”.

(2) Paragraph (a) of subsection (1) comes into operation on such day as the Minister for Finance may appoint by order.

100 .— The First Schedule (inserted by the Value-Added Tax (Amendment) Act 1978 ) to the Principal Act is amended—

(a) in paragraph (i)(a) by inserting “other than the issue of new stocks, new shares, new debentures or new securities made to raise capital, the” after “the issue,”, and

(b) in paragraph (i)(b) by substituting “of stocks, shares, debentures and other securities, other than documents establishing title to goods,” for “specified in subparagraph (a),”.

101 .— With effect from 1 May 2006, the Sixth Schedule to the Principal Act is amended in paragraphs (viib) and (viic) by substituting “€27,500” for “€25,500”.

¹⁹OJ No. L145 of 13.6.1977, p.1

²⁰OJ No. L331 of 6.12.1979, p.11

²¹OJ No. L326 of 21.11.1986, p.40