Accounting for VAT
VALUE-ADDED TAX CONSOLIDATION ACT
Chapter 3
Returns and payment of tax (ss. 74-79)
74.
Tax due on supplies.
(1)Tax chargeable under section 3(a) or (c) shall be due –
(a)in case an invoice is required under Chapter 2 to be issued, at the time of issue of the invoice or, if the invoice is not issued in due time, upon the expiration of the period within which the invoice should have been issued,
(b)in case a person is liable under section 69(1) or (2) to pay an amount of tax by reference to an invoice, or credit note, issued by him or her, at the time of issue of that invoice or credit note,
(c)in the case of continuous supplies of telecommunications services or electricity, or of gas which has the meaning assigned to it in paragraph 17(3) of Schedule 3 –
(i)supplied to a person other than a person to whom an invoice is required to be issued under Chapter 2, and
(ii)for which there is a statement of account (being a balancing statement or demand for payment which issues at least once every 3 months),
at the time of issue of the statement of account in respect of those supplies,
(ca)in the case of a supply of goods in accordance with section 91G, at the time payment for the goods has been accepted, and
(d)in any other case, at the time the goods or services are supplied.
(2)Notwithstanding anything in this Act but subject to subsection (3), the tax chargeable under section 3(a) or (c), other than tax chargeable in respect of supplies of the kind specified in paragraph 1(1) or (2) of Schedule 2, shall be due not later than the time when the amount in respect of which it is payable has been received in full or in part, and where the amount is received in full or in part before the supply of the goods or services to which it relates, a supply for a consideration equal to the amount received of such part of the goods or services as is equal in value to the amount received, shall be deemed, for the purposes of this Act, to have taken place at the time of such receipt.
(3)Subsection (2) does not apply to the tax chargeable in respect of supplies of goods or services where tax is due in accordance with subsection (1)(a), (b) or (c) by an accountable person who is not authorised under section 80 to account for tax due by reference to the amount of the moneys received during a taxable period or part thereof.
(4)[deleted]
75.
Tax due on intra-Community acquisitions.
Tax chargeable under section 3(d) or (e) shall be due –
(a)on the 15th day of the month following that during which the intra-Community acquisition occurs,
(b)in case an invoice is issued before the date specified in paragraph (a) by the supplier in another Member State to the person acquiring the goods, when that invoice is issued.
76.
Returns and remittances.
(1)Subject to subsection (2) and sections 91C(3), 91E(3) and 91K(3), an accountable person shall, within 9 days immediately after the 10th day of the month immediately following a taxable period –
(a)furnish to the Collector-General a true and correct return, prepared in accordance with regulations, of –
(i)the amount of tax which became due by the person during that taxable period (other than tax already paid by him or her in relation to goods imported by him or her),
(ii)the amount (if any) which may be deducted in accordance with Chapter 1 of Part 8 in computing the amount of tax payable by the person in respect of that taxable period, and
(iii)such other particulars as may be specified in regulations,
and
(b)remit to the Collector-General, at the same time as so furnishing such return, the amount of tax (if any) payable by the person in respect of that taxable period.
(2)A person who disposes of goods or supplies services which pursuant to section 22(3) or 28(4) or (5) are deemed to be supplied by an accountable person in the course or furtherance of his or her business shall –
(a)within 9 days immediately after the 10th day of the month immediately following a taxable period –
(i)furnish to the Collector-General –
(I)a true and correct return, prepared in accordance with regulations, of the total amount of tax which became due in that taxable period, by –
(A)the accountable person in relation to the disposal of the goods or the supply of the services, and
(B)the receiver, liquidator or other person exercising a power, in relation to any adjustment required under Chapter 2 of Part 8 or section 95(4)(c),
and
(II)such other particulars as may be specified in regulations,
and
(ii)remit to the Collector-General, at the same time as so furnishing such return, the amount of tax payable in respect of that taxable period,
(b)send to the accountable person deemed to have disposed of the goods or supplied the services a statement containing such particulars as may be specified in regulations, and
(c)treat the amount of tax referred to in paragraph (a) as a necessary disbursement out of the proceeds of the disposal or the income from the services deemed to be supplied by the accountable person.
(3)The owner of the goods or the supplier of the services which pursuant to section 22(3) or 28(4) or (5) are deemed to be supplied by an accountable person in the course or furtherance of the accountable person’s business shall exclude from any return which the owner is or, but for this subsection, would be required to furnish under this Act, the tax payable in accordance with subsection (2).
(4)
(a)
(i)A return required to be furnished by an accountable person under this section, or section 77 or an adjustment to a return as referred to in section 77A, may be furnished by the accountable person or another person acting under the accountable person’s authority for that purpose.
(ii)A return purporting to be a return furnished by a person acting under an accountable person’s authority shall be deemed to be a return furnished by the accountable person unless the contrary is proved.
(b)Where a return in accordance with paragraph (a) is furnished by a person acting under an accountable person’s authority, the provisions of any enactment relating to value-added tax shall apply as if that return had been furnished by the accountable person.
77.
Authorisations in relation to filing dates.
(1)
(a)In this section –
“accounting period” means a period, as determined by the Collector-General from time to time in any particular case, consisting of a number of consecutive taxable periods not exceeding 6 or such other period not exceeding a continuous period of 12 months as may be specified by the Collector-General;
“authorised person” means an accountable person who has been authorised in writing by the Collector-General for the purposes of this section, and “authorise” and “authorisation” shall be construed accordingly.
(b)Where an accounting period begins before the end of a taxable period, the period of time from the beginning of the accounting period to the end of the taxable period during which the accounting period begins shall, for the purposes of this section, be treated as if such period of time were a taxable period, and any references in this section to a taxable period shall be construed accordingly.
(c)Where an accounting period ends after the beginning of a taxable period, the period of time from the beginning of the taxable period during which the accounting period ends to the end of the accounting period shall, for the purposes of this section, be treated as if such period of time were a taxable period, and any references in this section to a taxable period shall be construed accordingly.
(2)Notwithstanding section 76(1) –
(a)the Collector-General may, from time to time, authorise in writing an accountable person for the purposes of this section unless the accountable person objects in writing to the authorisation,
(b)an authorised person may, within 9 days immediately after the 10th day of the month immediately following an accounting period –
(i)furnish to the Collector-General a true and correct return prepared in accordance with regulations of –
(I)the amount of tax which became due by the person during the taxable periods which comprise the accounting period (other than tax already paid by him or her in relation to goods imported by him or her),
(II)the amount (if any) which may be deducted in accordance with Chapter 1 of Part 8 in computing the amount of tax payable by the person in respect of those taxable periods, and
(III)such other particulars as may be specified in regulations,
and
(ii)remit to the Collector-General, at the same time as so furnishing such return, any amount of tax payable by the person in respect of those taxable periods,
(c)in the case of an authorised person referred to in subsection (5), the amount of tax referred to in paragraph (b)(ii) shall be the balance of tax remaining to be paid (if any) after deducting from it the amount of tax paid by the person by direct debit in respect of his or her accounting period,
(d)where the authorised person concerned furnishes and remits in accordance with this subsection, the person shall be deemed to have complied with section 76(1) in relation to those taxable periods.
(3)For the purposes of issuing an authorisation to an accountable person, the Collector-General shall, where he or she considers it appropriate, have regard to the following matters:
(a)he or she has reasonable grounds to believe that –
(i)the authorisation will not result in a loss of tax, and
(ii)the accountable person will meet all of his or her obligations under the authorisation;
and
(b)the accountable person –
(i)has been a registered person during all of the period consisting of the 6 taxable periods immediately preceding the period in which an authorisation would, if it were issued, have effect, and
(ii)has complied with section 76(1).
(4)An authorisation may –
(a)be issued without conditions or subject to such conditions as the Collector-General, having regard in particular to the considerations referred to in subsection (3), considers proper and specifies in writing to the accountable person concerned when issuing the authorisation,
(b)without prejudice to the generality of paragraph (a), require an authorised person to remit to the Collector-General, within 9 days immediately after the 10th day of the month immediately following each taxable period (other than the final taxable period) which is comprised in an accounting period, such an amount as may be specified by the Collector-General.
(5)
(a)Without prejudice to the generality of subsection (4), an authorisation may require an authorised person to agree with the Collector-General a schedule of amounts of money (in this subsection referred to as “the schedule”) which he or she undertakes to pay on dates specified by the Collector-General by monthly direct debit from his or her account with a financial institution.
(b)The total of the amounts specified in the schedule shall be the authorised person’s best estimate of his or her total tax liability for his or her accounting period.
(c)The authorised person shall review on an on-going basis whether the total of the amounts specified in the schedule is likely to be adequate to cover his or her actual liability for his or her accounting period and, where this is not the case or is not likely to be the case, he or she shall agree a revised schedule of amounts with the Collector-General and adjust his or her monthly direct debit amounts accordingly.
(6)The Collector-General may, by notice in writing, terminate an authorisation and, where an accountable person requests the Collector-General to do so, he or she shall terminate the authorisation.
(7)For the purposes of terminating an authorisation, the Collector-General shall, where he or she considers it appropriate, have regard to the following matters:
(a)he or she has reasonable grounds to believe that the authorisation has resulted or could result in a loss of tax; or
(b)the accountable person –
(i)has furnished, or there is furnished on his or her behalf, any incorrect information for the purposes of the issue to him or her of an authorisation, or
(ii)has not complied with section 76(1) or this section, including the conditions (if any) specified by the Collector-General under subsection (4) or (5) in relation to the issue to him or her of an authorisation.
(8)In relation to any taxable period in respect of which he or she has not complied with section 76(1), a person whose authorisation is terminated shall be deemed to have complied with that section if, within 14 days of the issue to him or her of a notice of termination, he or she –
(a)furnishes to the Collector-General the return specified in section 76(1), and
(b)remits to the Collector-General, at the same time as so furnishing such return, the amount of tax payable by him or her in accordance with section 76(1).
(9)
(a)An authorisation shall be deemed to have been terminated by the Collector-General on the date that an authorised person –
(i)ceases to trade (other than for the purposes of disposing of the stocks and assets of his or her business), whether for reasons of insolvency or any other reason,
(ii)being a body corporate, goes into liquidation, whether voluntarily or not, or
(iii)ceases to be an accountable person, dies or becomes bankrupt.
(b)An accountable person to whom this subsection relates shall, in relation to any taxable period (or part of a taxable period) comprised in the accounting period which was in operation in his or her case on the date to which paragraph (a) relates, be deemed to have complied with section 76(1) if he or she –
(i)furnishes to the Collector-General the return specified in subsection (2)(b), and
(ii)remits to the Collector-General, at the same time as so furnishing such return, the amount of tax payable by him or her for the purposes of subsection (2)(b) as if he or she were an authorised person whose accounting period ended on the last day of the taxable period during which the termination occurred.
(c)For the purposes of paragraph (b), the personal representative of a person who was an authorised person shall be deemed to be the accountable person concerned.
77A.
Adjustments to returns
(1)Where, following the submission to the Collector-General of a return (in this section referred to as an ‘original return’) required to be furnished under section 76 or 77, as appropriate, that return is adjusted by an accountable person by means of –
(a)a correction to the original return,
(b)a replacement of the original return, or
(c)a supplement to the original return,
(in this section and in section 76(4) referred to as an ‘adjustment to a return’) the provisions of any enactment relating to value-added tax shall apply to that adjustment to a return as if it were a return required to be furnished under section 76 or 77, as appropriate.
(2)Any adjustment to a return to which subsection (1) applies shall, where applicable, be deemed to be a claim for a refund of tax and be subject to the provisions of section 99.
78.
Electronic remittances and returns.
(1)In this section –
“electronic remittance” means a remittance made by such electronic means (within the meaning of section 917EA of the Taxes Consolidation Act 1997) as are required by the Revenue Commissioners;
“electronic return” means a return made by electronic means and in accordance with Chapter 6 of Part 38 of the Taxes Consolidation Act 1997;
“relevant provisions” mean sections 76(1) and (2) and 77(2)(b) and (4)(b).
(2)Subject to subsection (3), where an electronic remittance or, as the case may be, an electronic return and electronic remittance of the amount payable (if any) referred to in the relevant provisions is or are made, then the relevant provisions shall apply and have effect as if “13 days” were substituted for “9 days” in each place where the latter occurs in the relevant provisions.
(3)Where the remittance or return referred to in subsection (2) is made after the period provided for in that subsection, this Act shall apply and have effect without regard to the other provisions of this section.
79.
Special provisions in relation to payment dates.
(1)In this section –
“registration of the vehicle” means the registration of the vehicle in accordance with section 131 of the Finance Act 1992;
“vehicle registration tax” means the tax referred to in section 132 of the Finance Act 1992.
(2)Notwithstanding sections 76 and 77, where a person makes an intra-Community acquisition of a new means of transport (other than a vessel or aircraft) in respect of which he or she is not entitled to a deduction under Chapter 1 of Part 8, then –
(a)the tax shall be payable –
(i)subject to subparagraphs (ii) and (iii), at the time of payment of the vehicle registration tax,
(ii)subject to subparagraph (iii), if no vehicle registration tax is payable, at the time of registration of the vehicle,
(iii)if section 131 of the Finance Act 1992 does not provide for the registration of the vehicle, at a time not later than the time when the tax is due in accordance with section 75,
(b)the person shall complete such form as may be provided by the Revenue Commissioners for the purpose of this subsection, and
(c)the provisions relating to the recovery and collection of vehicle registration tax shall apply, with such exceptions and modifications (if any) as may be specified in regulations, to tax referred to in this subsection as if it were vehicle registration tax.
(3)Notwithstanding sections 76 and 77, where a person makes an intra-Community acquisition of a new means of transport which is a vessel or aircraft, in respect of which he or she is not entitled to a deduction under Chapter 1 of Part 8, then –
(a)the tax shall be payable at a time and in a manner to be determined by regulations, and
(b)the provisions relating to the recovery and collection of a duty of customs shall apply, with such exceptions and modifications (if any) as may be specified in regulations, to tax referred to in this subsection as if it were a duty of customs.
(4)Notwithstanding sections 76 and 77, where section 11(2) applies –
(a)the tax shall be payable at the time of payment of the duty of excise on the goods, and
(b)the provisions relating to the recovery and collection of that duty of excise shall apply, with such exceptions and modifications (if any) as may be specified in regulations, to tax referred to in this subsection as if it were that duty of excise.
(5)Notwithstanding sections 76 and 77, where section 91, 91C or 91E applies, the tax shall be payable at the time specified in section 91(6), 91C(4) or 91E(4), as the case may be.
Chapter 4
Tax due on moneys received (s. 80)
80. Tax due on moneys received basis.
(1)A person who satisfies the Revenue Commissioners that –
(a)taking one period with another, at least 90 per cent of the person’s turnover is derived from taxable supplies to persons who are not registered persons, or
(b)the total consideration which the person is entitled to receive in respect of the person’s taxable supplies has not exceeded and is not likely to exceed €2,000,000 in any continuous period of 12 months,
may, in accordance with regulations, be authorised to determine the amount of tax which becomes due by the person during any taxable period (or part thereof) during which the authorisation has effect by reference to the amount of the moneys which the person receives during that taxable period (or part thereof) in respect of taxable supplies.
(2)Where an authorisation to which subsection (1) relates has not been cancelled under subsection (4), then –
(a)the rate of tax due by the person concerned in respect of a supply shall be the rate of tax chargeable at the time the goods or services are supplied,
(b)if tax on a supply has already been due and payable under any other provisions of this Act prior to the issue of that authorisation, tax shall not be due again in respect of any such supply as a result of the application of subsection (1), and
(c)if no tax is due or payable on a supply made prior to the issue of that authorisation, tax shall not be due in respect of any such supply as a result of the application of subsection (1).
(3)
(a)The Minister may, by order –
(i)increase the amount specified in subsection (1)(b), or
(ii)where an amount stands specified by virtue of an order under this paragraph, including an order relating to this subparagraph, further increase the amount so specified.
(b)An order under paragraph (a) shall be laid before Dáil Éireann as soon as may be after it is made and, if a resolution annulling the order is passed by Dáil Éireann within the next 21 sitting 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)The Revenue Commissioners –
(a)may, in accordance with regulations, cancel an authorisation under subsection (1), and
(b)may, by regulations, exclude from the application of subsection (1) any tax due in respect of specified descriptions of supplies of goods or services and any moneys received in respect of such supplies.
(5)Where an authorisation has issued to any person in accordance with subsection (1) and the person fails to issue a credit note in accordance with section 67(1)(b) in respect of any supply where the consideration as stated in the invoice issued by that person for that supply is reduced or a discount is allowed, then, at the time when a credit note should have issued in accordance with section 70(1) –
(a)such tax as is attributable to the reduction or discount shall be treated as being excluded from the application of subsection (1), and
(b)the person shall be liable for that tax as if it were tax due in accordance with Chapter 3 at that time.
(6)This section does not apply to tax provided for by section 3(b), (d) or (e).
Chapter 5 Expression of doubt (s. 81)
81.
Letter of expression of doubt.
(1)For the purposes of this section –
“accountable person” includes a person who is not a registered person and is in doubt as to whether he or she is an accountable person in respect of a transaction and, in that case, references to a return and records are to be construed as referring to a return that would be due under Chapter 3 and records that would be kept for the purposes of Chapter 7 or section 124(7), if that person were in fact an accountable person;
“the law” has the meaning assigned to it by subsection (2);
“letter of expression of doubt” means a communication received in legible form which –
(a)sets out full details of the circumstances of the transaction and makes reference to the provisions of the law giving rise to the doubt
(b)identifies the amount of tax in doubt in respect of the taxable period to which the expression of doubt relates
(c)is accompanied by supporting documentation as relevant, and
(d)is clearly identified as a letter of expression of doubt for the purposes of this section,
and reference to “an expression of doubt” shall be construed accordingly.
(2)
(a)Subject to paragraph (b), where an accountable person is in doubt as to the correct application of any enactment relating to value-added tax (in this section referred to as “the law”) to a transaction which could –
(i)give rise to a liability to tax by that person, or
(ii)affect that person’s liability to tax or entitlement to a deduction or refund of tax,
then the accountable person may, at the same time as the accountable person furnishes to the Collector-General the return due in accordance with Chapter 3 for the period in which the transaction occurred, lodge a letter of expression of doubt with the Revenue Commissioners at the office of the Commissioners which would normally deal with the examination of the records kept by that person in accordance with Chapter 7 or section 124(7).
(b)This section shall apply only if the return referred to in paragraph (a) is furnished within the time limits prescribed in Chapter 3.
(3)A person whose expression of doubt concerns whether he or she is an accountable person shall lodge that expression of doubt for the purposes of applying subsection (4) not later than the 19th day of the month following the taxable period in which the transaction giving rise to the expression of doubt occurred.
(4)Subject to subsection (5), where a return and a letter of expression of doubt relating to a transaction are furnished by an accountable person to the Revenue Commissioners in accordance with this section, section 114 shall not apply to any additional liability arising from a notification to that person by the Revenue Commissioners of the correct application of the law to that transaction, on condition that such additional liability is accounted for and remitted to the Collector-General by the accountable person as if it were tax due for the taxable period in which the notification is issued.
(5)Subsection (4) does not apply where the Revenue Commissioners do not accept as genuine an expression of doubt in respect of the application of the law to a transaction, and an expression of doubt shall not be accepted as genuine in particular where the Commissioners –
(a)have issued general guidelines concerning the application of the law in similar circumstances,
(b)are of the opinion that the matter is otherwise sufficiently free from doubt as not to warrant an expression of doubt, or
(c)are of the opinion that the accountable person was acting with a view to the evasion or avoidance of tax.
(6)Where the Revenue Commissioners do not accept an expression of doubt as genuine, they shall notify the accountable person accordingly, and the accountable person shall account for any tax, which was not correctly accounted for in the return referred to in subsection (2), as tax due for the taxable period in which the transaction occurred, and section 114 shall apply accordingly.
(7)An accountable person who is aggrieved by a decision of the Revenue Commissioners that the person’s expression of doubt is not genuine may appeal the decision to the Appeal Commissioners, in accordance with section 949I of the Taxes Consolidation Act 1997, within the period of 30 days after the date of the notice of that decision.
(8)A letter of expression of doubt shall be deemed not to have been made unless its receipt is acknowledged by the Revenue Commissioners and that acknowledgement forms part of the records kept by the accountable person for the purposes of Chapter 7 or section 124(7).
Chapter 6
Recapitulative statements (ss. 82-83)
82.
Statement of intra-Community supplies of goods.
(1)In this section –
“intra-Community supplies of goods” means supplies of goods to a person registered for value-added tax in another Member State;
“prescribed threshold” means –
(a)subject to paragraph (b), €100,000
(b)on and from 1 January 2012, €50,000.
(2)An accountable person shall, not later than the deadline fixed by this section, lodge with the Revenue Commissioners a statement –
(a)of the person’s intra-Community supplies of goods,
(b)prepared in accordance with, and containing such particulars as may be specified in, regulations (if any), and
(c)including information about the value-added tax identification number of the taxable person to whom goods are intended to be supplied, where those goods are dispatched or transported by the accountable person under call-off stock arrangements referred to in Article 17a of the VAT Directive, and any subsequent change to such information.
(3)
(a)Subject to paragraph (b), in the case of intra-Community supplies of goods, or the transfer of goods under call-off stock arrangements in accordance with the conditions set out in Article 17a of the VAT Directive, made during a calendar month, the deadline referred to in subsection (2) is the 23rd day of the month immediately following the end of that calendar month.
(b)This subsection does not apply to intra-Community supplies of goods –
(i)in respect of which an authorisation has been given under subsection (4), or
(ii)when an accountable person elects to lodge statements as permitted by subsection (5).
(4)The Revenue Commissioners may, on written request, authorise an accountable person who makes no supplies of the kind referred to in section 83 but who makes intra-Community supplies of goods that do not exceed, or are not likely to exceed, in a calendar year, an amount or amounts specified in regulations (if any), to lodge by 23 January following that calendar year a statement –
(a)setting out details of those intra-Community supplies of goods,
(b)prepared in accordance with, and containing such particulars as may be specified in, regulations (if any).
(5)
(a)Subject to paragraph (b), if, when subsection (4) does not apply, the total value of an accountable person’s intra-Community supplies of goods for a period of a calendar quarter, or of any of the previous 4 calendar quarters, does not exceed the prescribed threshold, the person may lodge a statement setting out details of those supplies not later than the 23rd day of the month immediately following the quarter during which the supplies were made.
(b)Where the value of the supplies referred to in paragraph (a) exceeds the prescribed threshold in any month, the deadline for lodging a statement in respect of those supplies is as provided by subsection (3).
(6)An accountable person who has made no intra-Community supplies of goods during a relevant period, but was required to lodge with the Revenue Commissioners a statement in respect of a previous period, shall, unless otherwise authorised by the Commissioners, lodge with them before the relevant deadline a statement to the effect that he or she made no such supplies during that period.
83.
Statement of intra-Community supplies of taxable services.
(1)In this section “intra-Community supplies of services” means supplies of services to a taxable person in another Member State or any other person registered for value-added tax in another Member State.
(2)An accountable person shall, not later than the deadline fixed by this section, lodge with the Revenue Commissioners a statement –
(a)of the person’s intra-Community supplies of services where the recipient is liable to pay the tax as provided by Article 196 of the VAT Directive,
(b)prepared in accordance with, and containing such particulars as may be specified in, regulations (if any).
(3)In the case of intra-Community supplies of services made during a calendar quarter, the deadline referred to in subsection (2) is the 23rd day of the month immediately following the end of that quarter, except where the accountable person elects to lodge statements monthly as provided by subsection (4).
(4)An accountable person who makes intra-Community supplies of services may elect to lodge statements of details of those services monthly, in which case the deadline for lodging those statements is not later than the 23rd day of each calendar month immediately following the month in which the supplies are made.
(5)For the purposes of statements to be lodged in accordance with subsection (2), services that are supplied continuously over a period of more than one year, in respect of which no statements of account or payments are made during that year, are to be regarded as being completed at the end of each calendar year until the date when the supply is finally completed.
(6)An accountable person who has made no intra-Community supplies of services to which this section applies during a relevant period, but who was required to lodge with the Revenue Commissioners a statement in respect of a previous period, shall, unless otherwise authorised by the Commissioners, lodge with them before the relevant deadline a statement to the effect that he or she made no such supplies during that period.
Part 12 Refunds and Repayments of Tax (ss. 99-105)
99.
General provisions on refund of tax.
(1)Subject to subsections (2) and (3), where in relation to a return lodged under Chapter 3 of Part 9 or a claim made in accordance with regulations, it is shown to the satisfaction of the Revenue Commissioners that, as respects any taxable period, the amount of tax (if any) actually paid to the Collector-General in accordance with Chapter 3 of Part 9 together with the amount of tax (if any) which qualified for deduction under Chapter 1 of Part 8 exceeds the tax (if any) which would properly be payable if no deduction were made under Chapter 1 of Part 8, the Commissioners shall refund the amount of the excess less any sums previously refunded under this subsection or repaid under Chapter 1 of Part 8 and may include in the amount refunded any interest which has been paid under section 114.
(2)Where the Revenue Commissioners apply section 15 to a number of persons, the Commissioners may defer repayment of all or part of any tax refundable under subsection (1) to any one or more of those persons prior to the application of that section if any one or more of those persons have not furnished all returns and remitted all amounts of tax referred to in section 76 or 77, as may be appropriate, at the time of such application.
(3)
(a)Subject to paragraph (b), the Revenue Commissioners may, where it appears requisite to them to do so for the protection of the revenue, require as a condition for making a refund in accordance with subsection (1) the giving of security of such amount and in such manner and form as they may determine.
(b)The amount of security referred to in paragraph (a) shall not, in any particular case, exceed the amount to be refunded.
(4)A claim for a refund under this Act may be made only within 4 years after the end of the taxable period to which it relates.
(5)Where the Revenue Commissioners refund any amount due under subsection (1) or section 100, they may, if they so determine, refund any such amount directly into an account, specified by the person to whom the amount is due, in a financial institution.
(6)The Revenue Commissioners shall not refund any amount of tax except as provided for in this Act or any order or regulations made under this Act.
100.
Unjust enrichment.
(1)Where, due to a mistaken assumption in the operation of the tax, whether that mistaken assumption was made by an accountable person, any other person or the Revenue Commissioners, a person –
(a)accounted, in a return furnished to the Revenue Commissioners, for an amount of tax for which that person was not properly accountable,
(b)did not, because that person’s supplies of goods and services were treated as exempted activities, furnish a return to the Revenue Commissioners and, therefore, did not receive a refund of an amount of tax in accordance with section 99(1), or
(c)did not deduct an amount of tax in respect of qualifying activities, within the meaning of section 59(1), which that person was entitled to deduct,
then, in respect of the total amount of tax referred to in paragraph (a), (b) or (c) (in this section referred to as the “overpaid amount”), that person may claim a refund of the overpaid amount and the Revenue Commissioners shall, subject to this section, refund to the claimant the overpaid amount unless they determine that the refund of that overpaid amount or part thereof would result in the unjust enrichment of the claimant.
(2)A person who claims a refund of an overpaid amount under this section shall –
(a)make that claim in writing setting out full details of the circumstances of the case and identifying the overpaid amount in respect of each taxable period to which the claim relates, and
(b)furnish such relevant documentation to support the claim as the Revenue Commissioners may request.
(3)
(a)For the purposes of determining whether a refund of an overpaid amount or part thereof would result in the unjust enrichment of a claimant, the Revenue Commissioners shall have regard to –
(i)the extent to which the cost of the overpaid amount was, for practical purposes, passed on by that claimant to other persons in the price charged by the claimant for goods or services supplied by the claimant,
(ii)any net loss of profits which they have reason to believe, based on their own analysis and on any information that may be provided to them by that claimant, was borne by the claimant due to the mistaken assumption made in the operation of the tax, and
(iii)any other factors that that claimant brings to their attention in this context.
(b)The Revenue Commissioners may request from the claimant all reasonable information relating to the circumstances giving rise to the claim as may assist them in reaching a determination for the purposes of paragraph (a).
(4)Where, in accordance with subsection (3), the Revenue Commissioners determine that a refund of an overpaid amount or part thereof would result in the unjust enrichment of a claimant, they shall refund only so much of the overpaid amount as would not result in the unjust enrichment of that claimant.
(5)Where, in relation to any claim under subsection (1), the Revenue Commissioners have withheld an amount of the overpaid amount claimed under subsection (1) as it would result in the unjust enrichment of the claimant, the Commissioners shall, notwithstanding subsection (1), refund to the claimant that part of the withheld amount together with any interest payable in accordance with section 105 which the claimant has undertaken to repay to the persons to whom the cost of the overpaid amount was passed on if they are satisfied that the claimant has adequate arrangements in place to identify and repay those persons.
(6)Where a claimant receives a refund in accordance with subsection (5) and fails to repay the persons concerned at the latest by the 30th day next following the payment by the Revenue Commissioners of that refund, then any amount not so repaid shall, for the purposes of this Act, be treated as if it were tax due by the claimant for the taxable period within which that day falls.
101.
Intra-Community refunds of tax.
(1)For the purposes of this section –
“applicant” means a taxable person who –
(a)not being established in the Member State of refund, but being established in another Member State, and
(b)having entered into transactions that give rise to a right of deduction in that other Member State
makes a refund application;
“deductible transactions” means transactions that give rise to a right of deduction in the Member State concerned;
“Member State of refund”, in relation to an applicant, means the Member State in which value-added tax (as referred to in the VAT Directive) was charged to the applicant in respect of –
(a)goods or services supplied to the applicant by other taxable persons in that Member State, or
(b)the importation of goods into that Member State;
“non-deductible transactions” means transactions that do not give rise to a right of deduction in the Member State concerned;
“refund application” means an electronic application submitted for a refund of tax charged in the Member State of refund to an applicant in respect of goods or services supplied to the applicant by taxable persons in that Member State or in respect of the importation of goods into that Member State.
(2)The Revenue Commissioners shall, in accordance with this section and regulations (if any), make a refund to an applicant of tax charged to the applicant by accountable persons in the State or tax charged to that applicant on the importation of goods into the State, in cases where a full and correct refund application has been received by them from the Member State in which the applicant is established.
(3)
(a)Subject to paragraph (b), where the State is the Member State of refund, the amount of tax that is refundable in accordance with subsection (2) is the amount of tax charged to an applicant by an accountable person in respect of supplies of goods or services in the State, or on the importation of goods by the applicant into the State, if those goods or services are used by the applicant for the purpose of the applicant’s business, but only to the extent that the applicant would be able to deduct that amount under Chapter 1 of Part 8 if the applicant were an accountable person in the State.
(b)Where an applicant undertakes in the applicant’s Member State of establishment both deductible transactions and non-deductible transactions, the amount to be refunded by the Member State of refund is the proportion of tax attributable to the deductible transactions as determined in accordance with the law of the applicant’s Member State of establishment.
(4)An applicant who wishes to claim a refund of tax may apply for the refund only through the electronic portal set up for the purpose by the applicant’s Member State of establishment.
(5)
(a)Where an applicant who carries out transactions of the kind referred to in subsection (3)(b) makes a refund application and the proportion of tax referred to in that subsection is subsequently adjusted, the applicant shall make a correction to the original amount that was applied for or has already been refunded.
(b)The applicant shall make the correction in a refund application during the calendar year following the period for which the relevant refund application was made or, if the applicant makes no refund applications during that calendar year, by lodging a separate declaration via the electronic portal established by the Member State of establishment of the applicant.
(6)
(a)
(i)Where the State is the Member State of refund, the applicant shall ensure that the refund application covers tax charged in respect of supplies of goods or services invoiced to the applicant and importations by the applicant during a refund period, being a period of not more than one calendar year and, subject to subparagraph (ii), not less than 3 calendar months.
(ii)A refund period may be less than 3 calendar months if the application in respect of the period relates to the last quarter of a calendar year.
(b)A refund application may be lodged only on or before 30 September in the calendar year following the refund period.
(ba)[deleted]
(c)A refund application may cover tax charged in respect of transactions omitted from the applicant’s previous refund applications, but only if those transactions were completed during the relevant calendar year.
(7)
(a)An applicant is not entitled to make a refund application under this section for an amount less than €400 if the claim is for a period of less than one calendar year but at least 3 months.
(b)An applicant is not entitled to make a refund application under this section for an amount less than €50 if the claim is for a period that represents a full calendar year or the last quarter of a calendar year.
(8)As soon as is practicable after deciding not to forward to another Member State a refund application made by an applicant established in the State on the grounds that the applicant is not entitled to a refund, the Revenue Commissioners shall notify the decision to the applicant by electronic means.
(9)
(a)This subsection applies to a refund application in respect of which the State is the Member State of refund.
(b)As soon as is practicable after receiving from an applicant a refund application to which this subsection applies, the Revenue Commissioners shall notify the applicant by electronic means of the date on which they received the application.
(c)Within 4 months after the date on which they received a refund application from an applicant, the Revenue Commissioners shall, except as otherwise provided by this subsection –
(i)decide whether or not to approve the application (whether wholly or partly), and
(ii)notify their decision to the applicant by electronic means.
(d)
(i)At any time within 4 months after the date on which they received a refund application from an applicant established in another Member State, the Revenue Commissioners may request additional information in support of the details provided in the application.
(ii)A request referred to in subparagraph (i) may be made to the applicant, the competent authority of the Member State where the applicant is established or any other person whom the Revenue Commissioners reasonably believe to be capable of providing relevant information.
(e)Where the Revenue Commissioners request additional information in accordance with paragraph (d), they shall, except when paragraph (g) applies –
(i)decide whether or not to approve the application (whether wholly or partly), and
(ii)notify their decision to the applicant by electronic means,
within 2 months after the relevant date.
(f)For the purpose of this subsection, the relevant date is –
(i)where the Revenue Commissioners receive the requested information within one month after the date on which the request was notified to the recipient, the date on which the Commissioners received the additional information,
(ii)where the Revenue Commissioners do not receive the requested information within one month after the date on which the request was made to the recipient, the date on which that period ends,
(iii)where the Revenue Commissioners receive the requested information within one month referred to in subparagraph (i), or that period expires without the Commissioners having received that information, the date that is 6 months after the date on which the refund application was made.
(g)Where the Revenue Commissioners consider it necessary to do so, they may, at any time before they make a decision with respect to a refund application, request any of the persons referred to in paragraph (d) to provide further additional information concerning the application or the applicant.
(h)Where the Revenue Commissioners request further additional information with respect to a refund application or the applicant as provided by paragraph (g), they shall –
(i)decide whether or not to approve the application (whether wholly or partly), and
(ii)notify their decision to the applicant by electronic means,
within 8 months after the date on which they received the refund application.
(i)Where the Revenue Commissioners have reasonable doubts about the validity or accuracy of a refund application, they may request the original or a copy of the relevant invoice or importation document to be produced for inspection.
(j)Without limiting the grounds on which the Revenue Commissioners may refuse a refund application, they may refuse to approve such an application on the ground that a request made by them under this subsection has been refused or has not been complied with within a reasonable time.
(k)Where the Revenue Commissioners notify an applicant of their decision to approve a refund application either wholly or partly, they shall refund the amount due not later than 10 working days after the notification of the decision to the applicant.
(l)Where the Revenue Commissioners decide to refuse to approve a refund application either wholly or partly, they shall include in their decision the grounds for the refusal.
(10)Where the State is the Member State of refund, and the applicant requests payment of the refund to be made in another Member State, the Revenue Commissioners shall deduct from the refund amount any bank charges in respect of the payment.
(11)
(a)An applicant who has obtained a refund from the Revenue Commissioners based on an incorrect refund application containing an erroneous claim or declaration (whether or not the error was made intentionally, recklessly or carelessly) shall –
(i)repay to the Commissioners the amount incorrectly obtained as a refund, and
(ii)pay an amount of interest to the Commissioners.
(b)Any such interest is to be calculated at the rate provided for in section 114(2) from the date on which the refund was made to the day on which the applicant repays to the Revenue Commissioners the amount incorrectly obtained as a refund.
(c)The liability imposed on an applicant by this subsection is in addition to the liability imposed by section 116 or 116A, as appropriate.
(12)While an applicant to whom subsection (11) applies continues to fail to pay the Revenue Commissioners an amount payable under that subsection, the Commissioners shall withhold any further refund to that applicant up to the amount that is due from the applicant under that subsection.
(13)
(a)Subject to paragraph (b), where the Revenue Commissioners refund an amount due to an applicant but not within the time limits prescribed by subsection (9), they shall pay an amount of interest to the applicant calculated at the rate provided for in section 105(4) from the day following the last day of the period within which payment of the amount due is required to be made to the day on which the amount due is paid to the applicant.
(b)Paragraph (a) does not apply if the applicant –
(i)provides additional information in accordance with a request made by the Revenue Commissioners but not within one month after the date on which the request was notified to the applicant, or
(ii)fails to provide all of the additional information requested within that period.
(14)This section does not apply to an applicant who supplies –
(a)goods or services in respect of which the place of supply is the Member State of refund, other than –
(i)goods or services for which the person who receives them is liable,
(ii)services, the supply of which is taxable in accordance with section 34(kc), to which the Union scheme (within the meaning of section 91A) applies, or
(iii)goods, the supply of which is taxable in accordance with section 30, to which the import scheme (within the meaning of section 91A) applies,
or
(b)a transport service, or a service ancillary to such a service, that is exempted in the Member State of supply in accordance with Article 144, 146, 148, 149, 151, 153, 159 or 160 of the VAT Directive.
102.
Refunds to taxable persons established outside the Community.
(1)In this section “deductible tax”, in relation to a person to whom this section applies –
(a)subject to paragraph (b), means tax chargeable (including any flat-rate addition) in respect of goods or services used by the person for the purposes of any business carried on by him or her to the extent that such tax would be deductible by that person under Chapter 1 of Part 8 if the business were carried on by that person within the State
(b)does not include tax chargeable in respect of goods for supply within the State.
(2)In accordance with regulations, the Revenue Commissioners shall repay, to a person to whom this section applies, deductible tax chargeable in respect of supplies of goods or services to that person or in respect of goods imported by him or her.
(3)This section applies to a person who satisfies the Revenue Commissioners that the person –
(a)carries on a business outside the Community, and
(b)supplies no goods or services in the State other than –
(i)services for which, in accordance with section 10, 12, 16(3)(b) or 17(1), the person to whom they are supplied is solely liable for the tax that is chargeable,
(ii)services, the supply of which is taxable in accordance with section 34(kc), to which the non-Union scheme (within the meaning of section 91A) applies, or
(iii)goods, the supply of which is taxable in accordance with section 30, to which the import scheme (within the meaning of section 91A) applies.
103.
Ministerial refund orders.
(1)Subject to subsection (2A), the Minister may by order provide that a person who fulfils to the satisfaction of the Revenue Commissioners such conditions as may be specified in the order shall be entitled to be repaid so much, as is specified in the order, of any tax borne or paid by the person as does not qualify for deduction under Chapter 1 of Part 8.
(2)Subject to subsection (2A), the Minister may by order amend or revoke an order under this section, including an order under this subsection.
(2A)Where the Minister makes an order under this section, the Minister, in making the order, shall have regard to one or both of the following:
(a)the nature or purpose, including any social purpose, of the goods or services to which the refund the subject of the order relates;
(b)the nature or purpose of the person referred to in subsection (1) in relation to the goods or services to which the refund the subject of the order relates.
(2AA)Where a person referred to in subsection (1) has received a refund of tax, which is the subject of an order made under this section, and where, at any time after the refund of tax has been made, the Revenue Commissioners have reasonable grounds to believe that details of the claim giving rise to the refund were incorrect and that the person was therefore not entitled to all or part of that refund, it shall be considered that the conditions as specified in the order were not fulfilled by that person and accordingly that person shall be required to repay all or part of the refund, as appropriate, to the Revenue Commissioners.
(2B)Where the Minister makes an order under this section, the Minister may specify requirements in the order, to be complied with by the person referred to in subsection (1) after the refund the subject of the order has been paid to him or her, relating to –
(a)the carrying out of a review –
(i)at such time, or
(ii)upon the occurrence of such event,
as may be specified in the requirement concerned, to ascertain whether the conditions specified in the order continue to be fulfilled in relation to that person, or in relation to the goods or services to which such refund relates, or both, and
(b)the repayment to the Revenue Commissioners of all or part of such refund, as specified in the requirement concerned, if, following such review, it is ascertained that one or more of those conditions –
(i)is no longer fulfilled, or
(ii)has, at any stage after such refund has been paid to that person, temporarily ceased to be fulfilled.
(3)An order under this section may, if so expressed, have retrospective effect.
(4)An order under this section shall be laid before Dáil Éireann as soon as may be after it is made and, if a resolution annulling the order is passed by Dáil Éireann within the next 21 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 under it.
104.
Repayments in specific circumstances.
(1)
(a)In accordance with regulations, the Revenue Commissioners shall repay, to a person to whom this subsection applies, the residual tax included in the consideration for supply of a new means of transport where such new means of transport is subsequently dispatched or transported to another Member State.
(b)This subsection applies to a person who is not entitled to a deduction under Chapter 1 of Part 8 of the tax borne or paid by the person on the purchase, intra-Community acquisition or importation of the new means of transport in question.
(2)
(a)[deleted]
(b)[deleted]
(c)[deleted]
(d)Where a telephone card is used to access a telecommunications service, the value of the telephone card so used shall, for the purposes of section 37(3), be disregarded.
(3)Notwithstanding anything in this Act, a refund of the tax paid in respect of radio broadcasting reception apparatus and parts thereof belonging to an institution or society may be made to the institution or society but only if –
(a)in the opinion of the Revenue Commissioners, it has for its primary object the amelioration of the lot of blind persons, and
(b)it shows, to the satisfaction of the Revenue Commissioners, that the goods in question are intended for the use of blind persons.
(4)Regulations may make provision for remitting or repaying, subject to such conditions (if any) as may be specified in the regulations or as the Revenue Commissioners may impose, the tax chargeable in respect of the supply of goods, or of such goods as may be specified in the regulations, in cases where the Commissioners are satisfied that –
(a)the goods have been shipped on board an aircraft or ship proceeding to a place outside the State,
(b)the goods are, or are to be used in, a fishing vessel used or to be used for the purposes of commercial sea fishing.
(5)Regulations may make provision for remitting or repaying, subject to such conditions (if any) as may be specified in the regulations or as the Revenue Commissioners may impose, the tax chargeable in respect of the supply of both or any one (as may be specified in the regulations) of the following services:
(a)the repair, maintenance and hiring of plant or equipment used in a vessel or an aircraft specified in paragraph 4(2) of Schedule 2,
(b)the repair, maintenance and hiring of a vessel used, or of plant or equipment used in a vessel used, for the purposes of commercial sea fishing.
105.
Interest on refunds of tax.
(1)For the purposes of this section –
“claimant” means a person who submits a valid claim for a refundable amount;
“overpaid amount” means an amount which is a refundable amount as a result of a claimant having made a payment of tax;
“refundable amount” means an amount which a person is entitled to receive from the Revenue Commissioners in accordance with this Act or any order or regulations made under this Act and which is claimed within the period provided for in section 99(4), but such amount does not include interest payable under this section;
“valid claim” means a return or a claim, furnished in accordance with this Act or any order or regulations made under this Act, and which includes all information required by the Revenue Commissioners to establish the refundable amount.
(2)Where a mistaken assumption in the operation of the tax is made by the Revenue Commissioners and, as a result, a refundable amount is payable to a claimant, interest at the rate set out in subsection (4) or prescribed by order under subsection (7) shall, subject to section 960H(4) of the Taxes Consolidation Act 1997, be payable by the Revenue Commissioners on that amount from –
(a)in the case of an overpaid amount, the day that overpaid amount was received by the Revenue Commissioners,
(b)
(i)subject to subparagraph (ii), in the case of any other refundable amount, the 19th day of the month following the taxable period in respect of which a claimant would have been entitled to receive a refundable amount but for the mistaken assumption in the operation of the tax by the Revenue Commissioners,
(ii)where a return was due in accordance with Chapter 3 of Part 9 from the claimant referred to in subparagraph (i) in respect of the taxable period referred to in that subparagraph, the day such return was received,
to the day on which the refundable amount is paid by the Revenue Commissioners to the claimant.
(3)Where, for any reason other than a mistaken assumption in the operation of the tax made by the Revenue Commissioners, a refundable amount is payable to a claimant but is not paid until after the expiry of 93 days from the day the Revenue Commissioners receive a valid claim for that amount, interest at the rate specified in subsection (4) or prescribed by order under subsection (7) shall, subject to section 960H(4) of the Taxes Consolidation Act 1997, be payable by the Revenue Commissioners on that amount from the day on which that 93 days expires to the day on which the refundable amount is paid by the Revenue Commissioners to the claimant.
(4)Interest payable in accordance with this section shall be simple interest payable at the rate of 0.011 per cent per day or part of a day, or such other rate as may be prescribed by the Minister by order under subsection (7).
(5)Interest shall not be payable if it amounts to less than €10.
(6)
(a)The Revenue Commissioners shall not pay interest in respect of any amount under this Act except as provided for by this section.
(b)This section shall not apply in relation to any refund of tax in respect of which interest is payable under or by virtue of section 941 of the Taxes Consolidation Act 1997 as it applies for the purposes of value-added tax.
(7)
(a)The Minister may, from time to time, make an order prescribing a rate for the purposes of subsection (4).
(b)Every order made by the Minister under paragraph (a) shall be laid before Dáil Éireann as soon as may be after it is made and, if a resolution annulling the order is passed by Dáil Éireann within the next 21 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 under it.
(8)The Revenue Commissioners may make regulations as necessary governing the operation of this section.