Purchase VAT Reclaim
VALUE-ADDED TAX CONSOLIDATION ACT
Value-Added Tax Consolidation Act 2010 (No. 31)
Part 1 Preliminary and General (ss. 1-3)
1. Short title.
This Act may be cited as the Value-Added Tax Consolidation Act 2010.
2.
Interpretation – general.
(1)In this Act –
“accountable person” has the same meaning as it has in Part 2;
“accounting year” means a period of 12 months ending on 31 December, but if a taxable person customarily makes up accounts for periods of 12 months ending on another fixed date, then, for such a person, a period of 12 months ending on that fixed date;
“agricultural produce” has the meaning assigned to it by section 4(1);
“agricultural service” has the meaning assigned to it by section 4(1);
“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;
“antiques” has the meaning assigned to it by section 87(1);
“Appeal Commissioner” has the meaning given to it by section 2 of the Finance (Tax Appeals) Act 2015;
“assignment”, in relation to an interest in immovable goods, means the assignment by a person of that interest in those goods or any part of those goods to another person, except that, if that other person at the time of the assignment retains the reversion on that interest in those goods, that assignment shall be a surrender;
“auction scheme” has the meaning assigned to it by section 89(1);
“body of persons” means any body politic, corporate or collegiate, and any company, partnership, fraternity, fellowship and society of persons, whether corporate or not corporate;
“building”, in the definition of “development”, includes, in relation to a transaction, any prefabricated or like structure in respect of which the following conditions are satisfied
(a)the structure –
(i)has a rigid roof and one or more rigid walls and (other than in the case of a structure used for the cultivation of plants) a floor
(ii)is designed so as to provide for human access to, and free movement in, its interior
(iii)is for a purpose that does not require that it be mobile or portable, and
(iv)does not have or contain any aids to mobility or portability; and
(b)
(i)neither the agreement in respect of the transaction nor any other agreement between the parties to that agreement contains a provision relating to the rendering of the structure mobile or portable or the movement or re-location of the structure after its erection, and
(ii)the person (in this subparagraph referred to as the “relevant person”) for whom the structure is constructed, extended, altered or reconstructed signs and delivers, at the time of the transaction, to the person who constructed, extended, altered or reconstructed the structure, a declaration of the relevant person’s intention to retain it on the site on which it is at that time located;
“business” means an economic activity, whatever the purpose or results of that activity, and includes any activity of producers, traders or persons supplying services, including mining and agricultural activities and activities of the professions, and the exploitation of tangible or intangible property for the purposes of obtaining income therefrom on a continuing basis;
“calendar quarter” means a period of 3 months beginning on 1 January, 1 April, 1 July or 1 October;
“call-off stock arrangements” means the dispatch or transport of goods from one Member State to another Member State where, at the time of the dispatch or transport of the goods to such other Member State, the identity of the person to whom those goods will be supplied at a later stage and after the goods have arrived in the Member State of destination is known to the supplier;
“capital goods” means developed immovable goods and includes refurbishment within the meaning of section 63(1), and a reference to a capital good includes a reference to any part thereof and the term “capital good” shall be construed accordingly;
“clothing” does not include footwear;
“Collector-General” means the Collector-General appointed under section 851 of the Taxes Consolidation Act 1997;
“collectors’ items” has the meaning assigned to it by section 87(1);
“Community”, subject to subsection (4A), has the same meaning as it has in Articles 5 to 8 of the VAT Directive, and cognate references shall be construed accordingly;
“completed”, in respect of immovable goods, has the meaning assigned to it by section 94(1);
“composite supply” means a supply made by a taxable person to a customer comprising 2 or more supplies of goods or services or any combination of those, supplied in conjunction with each other, one of which is a principal supply;
“contractor”, in relation to contract work, means a person who makes or assembles movable goods;
“contract work” means the service of handing over by a contractor to another person of movable goods made or assembled by the contractor from goods entrusted to the contractor by that other person, whether or not the contractor has provided any part of the goods used;
“Customs Acts” has the meaning given to it by section 2(3) of the Customs Act 2015;
“customs-free airport” means the land which, under the Customs-free Airport Act 1947, for the time being constitutes the Customs-free airport;
“development”, in relation to any land, means –
(a)the construction, demolition, extension, alteration or reconstruction of any building on the land, or
(b)the carrying out of any engineering or other operation in, on, over or under the land to adapt it for materially altered use;
“distance sales of goods imported from third territories or third countries”, means supplies of goods dispatched or transported by or on behalf of the supplier, including where the supplier intervenes indirectly in the transport or dispatch of the goods, from outside the Community, to a customer in a Member State, where –
(a)the supply of goods is carried out for a taxable person, or a non-taxable legal person, whose intra-Community acquisitions of goods are not subject to value-added tax pursuant to Article 3(1), or for any other non-taxable person, and
(b)the goods supplied are neither new means of transport nor goods supplied after assembly or installation, with or without a trial run, by or on behalf of the supplier;
“electronically supplied services” includes –
(a)website supply, web-hosting, distance maintenance of programmes and equipment
(b)supply of software and updating of it
(c)supply of images, text and information, and making databases available
(d)supply of music, films and games (including games of chance and gambling games) and of political, cultural, artistic, sporting, scientific and entertainment broadcasts and events, and
(e)supply of distance teaching,
and “electronic service” shall be construed accordingly, but where the supplier of a service and his or her customer communicate by means of electronic mail, this shall not of itself mean that the service performed is an electronic service;
“enactment” means an Act or statutory instrument or any part of an Act or statutory instrument;
“excisable products” means the products referred to in section 97 of the Finance Act 2001;
“exempted activity” means –
(a)a supply of immovable goods in respect of which, pursuant to sections 93(2)(a)(i), 94(2) and 95(3) and (7)(b), tax is not chargeable, and
(b)a supply of any goods or services of a kind specified in Schedule 1;
“exportation of goods” means the exportation of goods to a destination outside the Community, and cognate words shall be construed accordingly;
“farmer” has the meaning assigned to it by section 4(1);
“flat-rate addition” has the meaning assigned to it by section 86(1);
“flat-rate farmer” means –
(a)a farmer who is not an accountable person
(b)a farmer who is an accountable person referred to in section 9(4) or 12(3), or
(c)a person who, in accordance with section 17(2), is deemed not to be an accountable person with respect to supplies of a kind specified in the definition of “farmer” in section 4(1)
in so far as that farmer engages in the supply of agricultural produce or agricultural services within the State;
“footwear” includes shoes, boots, slippers and the like but does not include stockings, under-stockings, socks, ankle-socks or similar articles or footwear without soles or footwear which is or incorporates skating or swimming equipment;
“free port” means the land declared to be a free port for the purposes of the Free Ports Act 1986 by an order made under section 2 of that Act;
“freehold equivalent interest” means an interest in immovable goods (other than a freehold interest) the transfer of which constitutes a supply of goods in accordance with Chapter 1 of Part 3;
“fur skin” means any skin with the fur, hair or wool attached except the skin of woolled sheep or lamb;
“goods” means all movable and immovable objects (other than things in action or money), and references to goods include references to both new and used goods;
“goods threshold” means €80,000;
“hire”, in relation to movable goods, includes a letting on any terms including a leasing;
“immovable goods” has the same meaning as ‘immovable property’ has in Article 13b (inserted by Council Implementing Regulation 1042/2013 of 7 October 2013 [OJ No. L284, 26.10.2013, p.1]) of Council Implementing Regulation 282/2011/EU of 15 March 2011 [OJ No. L77, 23.3.2011, p.1];
“importation of goods” means the importation of goods from outside the Community into the State –
(a)directly, or
(b)through one or more than one other Member State where value-added tax referred to in the VAT Directive has not been chargeable on the goods in such other Member State or Member States in respect of the transaction concerned, and cognate words shall be construed accordingly;
“independently”, in relation to a taxable person, excludes a person who is employed or who is bound to an employer by a contract of employment or by any other legal ties creating the relationship of employer and employee as regards working conditions, remuneration and the employer’s liability;
“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;
“inspector of taxes” means an inspector of taxes appointed under section 852 of the Taxes Consolidation Act 1997;
“intra-Community acquisition”, in relation to goods, has the meaning assigned to it by section 24;
“intra-Community distance sales of goods”, means supplies of goods dispatched or transported by or on behalf of the supplier, including where the supplier intervenes indirectly in the transport or dispatch of the goods, from a Member State other than that in which the dispatch or transport of the goods to the customer ends, where –
(a)the supply of goods is carried out for a taxable person, or for a non-taxable legal person, whose intra-Community acquisitions of goods are not subject to value-added tax pursuant to Article 3(1) of the VAT Directive, or for any other non-taxable person, and
(b)the goods supplied are neither new means of transport nor goods supplied after assembly or installation, with or without a trial run, by or on behalf of the supplier;
“joint option for taxation” has the meaning assigned to it by section 94;
“landlord’s option to tax” has the meaning assigned to it by section 97;
“livestock” means live –
(a)cattle, sheep, goats, pigs and deer, and
(b)horses normally intended for use in the preparation of foodstuffs or in agricultural production;
“local authority” has the meaning assigned to it by the Local Government Act 2001;
“margin scheme” has the meaning assigned to it by section 87(1);
“Minister” means the Minister for Finance;
“movable goods” means goods other than immovable goods;
“multiple supply” means 2 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 of those individual supplies, and where those individual supplies do not constitute a composite supply;
“new means of transport” means motorised land vehicles with an engine cylinder capacity exceeding 48 cubic centimetres or a power exceeding 7.2 kilowatts, vessels exceeding 7.5 metres in length and aircraft with a take-off weight exceeding 1,550 kilogrammes –
(a)which are intended for the transport of persons or goods, and
(b)
(i)which in the case of vessels and aircraft were supplied 3 months or less after the date of first entry into service and in the case of land vehicles were supplied 6 months or less after the date of first entry into service, or
(ii)which have travelled 6,000 kilometres or less in the case of land vehicles, sailed for 100 hours or less in the case of vessels or flown for 40 hours or less in the case of aircraft
other than vessels and aircraft of the kind referred to in paragraph 4(2) of Schedule 2;
“person registered for value-added tax”
(a)in relation to another Member State, means a person currently issued with an identification number in that State for the purposes of accounting for value-added tax referred to in the VAT Directive
(b)in relation to the State, means a registered person;
“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;
“public body” means –
(a)a Department of State
(b)a local authority, or
(c)a body established by any enactment;
“registered person” means a person who is registered in the register maintained under section 65;
“regulations” means regulations under section 120;
“repealed enactment” has the meaning assigned to it by section 121;
“second-hand goods” has the meaning assigned to it by section 87(1);
“secretary” includes such persons as are referred to in section 1044(2) of the Taxes Consolidation Act 1997 and section 55(1) of the Finance Act 1920;
“services threshold” means €40,000;
“stock-in-trade”, in relation to a person, means goods that are –
(a)movable goods of a kind that the person has supplied in the ordinary course of the person’s business and that –
(i)are held for supply (otherwise than because of section 19(1)(f)), or
(ii)would be so held if they were mature or if their manufacture, preparation or construction had been completed
(b)materials incorporated into immovable goods of a kind that –
(i)are supplied by the person in the ordinary course of the person’s business, and
(ii)have not been supplied by the person since the goods were developed, but are held for supply, or would be so held if their development had been completed
and such materials shall be taken to have been supplied to the same extent as the immovable goods into which they have been incorporated are taken to have been supplied
(c)consumable materials that the person has incorporated into immovable goods in the course of a business that consists of the supply of a service involving constructing, repairing, painting or decorating immovable goods where that service has yet to be completed, and such materials shall be taken to have been supplied to the extent that the service in relation to which they have been used has been supplied, or
(d)materials that have not been incorporated in goods and –
(i)are used by the person in the manufacture or construction of goods of a kind that the person supplies in the ordinary course of the person’s business, or
(ii)if the person’s ordinary business consists of repairing, painting or decorating immovable goods, are used by the person as consumable materials in the course of that business;
“supply”
(a)in relation to goods, has the meaning assigned to it by subsection (3) and Chapter 1 of Part 3
(b)in relation to services, has the meaning assigned to it by Chapter 3 of Part 3
and cognate words shall be construed accordingly;
“surrender”, in relation to an interest in immovable goods –
(a)means the surrender by a person (in this definition referred to as the “lessee”) of an interest in those goods or any part of those goods to the person (in this definition referred to as the “lessor”) who, at the time of the surrender, retains the reversion on that interest in those goods, and
(b)includes –
(i)the abandonment of that interest in those goods by the lessee
(ii)the failure of the lessee to exercise any option of the kind referred to in section 93(1)(a) in relation to that interest in those goods (but excluding any such failure if such interest were created on or after 1 July 2008), and
(iii)the recovery by the lessor of that interest in those goods by ejectment or forfeiture prior to the date that the interest would, but for its surrender, have expired;
“tax” means value-added tax chargeable by virtue of this Act;
“taxable dealer”
(a)in relation to supplies of gas through the natural gas distribution system, or of heat or cooling energy through heating or cooling networks, or of electricity, has the meaning assigned to it by section 31(1)(a), and
(b)in relation to supplies of movable goods (including a means of transport and agricultural machinery) has the meaning assigned to it by section 87(1);
“taxable goods”, in relation to any supply, intra-Community acquisition or importation, means goods the supply of which is not an exempted activity;
“taxable period” means a period of 2 months beginning on 1 January, 1 March, 1 May, 1 July, 1 September or 1 November;
“taxable person” means a person who independently carries on a business in the Community or elsewhere;
“taxable services” means services the supply of which is not an exempted activity;
“telecommunications services” means services relating to the transmission, emission or reception of signals, writing, images and sounds or information of any nature by wire, radio, optical or other electromagnetic systems, and includes –
(a)the related transfer or assignment of the right to use capacity for such transmission, emission or reception, and
(b)the provision of access to global information networks;
“telephone card” means a card, or a means other than money –
(a)that confers a right to access a telecommunications service and, in cases where the supplier of the telecommunications service so agrees with another supplier (in this definition referred to as a “contracted third party supplier”), a right to receive other services or goods from that contracted third party supplier, and
(b)that, when the card or other means is supplied to a person other than for the purpose of resale, entitles the supplier to a consideration for the supply under circumstances that preclude the user of the card or means from being liable for any further charge for access to the telecommunications service or for the receipt of services or goods from a contracted third party supplier;
“VAT Directive” means Council Directive No. 2006/112/EC of 28 November 2006 [OJ No. L347, 11.12.2006, p.1] on the common system of value-added tax;
“vessel”, in relation to transport, means a waterborne craft of any type, whether self-propelled or not, and includes a hovercraft;
“works of art” has the meaning assigned to it by section 87(1).
(2)In this Act references to moneys received by a person include references to –
(a)money lodged or credited to the account of the person in any bank, savings bank, building society, hire purchase finance concern or similar financial concern,
(b)money (other than money referred to in paragraph (a)) which under an agreement (other than an agreement providing for discount or a price adjustment made in the ordinary course of business or an arrangement with creditors) has ceased to be due to the person,
(c)money due to the person which, in accordance with section 1002 of the Taxes Consolidation Act 1997, is paid to the Revenue Commissioners by another person and has thereby ceased to be due to the person by that other person, and
(d)money, which, in relation to money received by a person from another person, has been deducted in accordance with –
(i)Chapter 1 of Part 18 of the Taxes Consolidation Act 1997, or
(ii)Chapter 2 of Part 18 of the Taxes Consolidation Act 1997,
and has thereby ceased to be due to the first-mentioned person by the other person,
and money so lodged or credited to the account of a person shall be deemed to have been received by the person on the date of the making of the lodgement or credit and money which has so ceased to be due to a person shall be deemed to have been received by the person on the date of the cesser.
(3)For the purposes of this Act, the provision of electricity, gas and any form of power, heat, refrigeration or ventilation shall be deemed to be a supply of goods and not a supply of services.
(4)In this Act, a reference to the territory of a Member State has the same meaning as it has in Articles 5 to 8 of the VAT Directive, and , subject to subsection (4A), references to Member States and cognate references shall be construed accordingly.
(4A)In this Act, each reference to –
(a)Community, and
(b)Member State,
shall apply as if the reference included a reference to Northern Ireland,save –
(i)where the reference occurs in a provision specified in Part 1 of Schedule 9, and
(ii)in the case of a provision specified in Part 2 of Schedule 9, in so faras the provision applies to services.
(5)References in any other enactment to the “Value-Added Tax Acts” mean this Act and every enactment which is to be read together with this Act.
3.
Charge of value-added tax.
Except as expressly otherwise provided by this Act, a tax called value-added tax is, subject to and in accordance with this Act and regulations, chargeable, leviable and payable on the following transactions:
(a)the supply for consideration of goods by a taxable person acting in that capacity when the place of supply is the State;
(b)the importation of goods into the State;
(c)the supply for consideration of services by a taxable person acting in that capacity when the place of supply is the State;
(d)the intra-Community acquisition for consideration by an accountable person of goods (other than new means of transport) when the acquisition is made within the State;
(e)the intra-Community acquisition for consideration of new means of transport when the acquisition is made within the State.
Part 2 Accountable persons (ss. 4-18)
Chapter 1 Interpretation (s. 4)
4. Definitions – Part 2.
(1)In this Act –
“agricultural produce”, in relation to a farmer, means goods (other than live greyhounds) produced by the farmer in the course of an Annex VII activity;
“agricultural service”, in relation to a farmer, means any Annex VIII service supplied by the farmer using his or her own labour or that of his or her employees or effected by means of machinery, plant or other equipment normally used for the purposes of an Annex VII activity carried on by the farmer;
“Annex VII activity” means any activity of a description specified in Annex VII of the VAT Directive (the text of which Annex is contained in Part 1 of Schedule 4) and Article 295(2);
“Annex VIII service” means any service of a description specified in Annex VIII of the VAT Directive (the text of which Annex is contained in Part 2 of Schedule 4);
“farmer” means a person who engages in at least one Annex VII activity, and –
(a)whose supplies consist exclusively of either or both of the following:
(i)supplies of agricultural produce
(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:
(i)supplies of machinery, plant or equipment which has been used by such person for the purposes of an Annex VII 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 the services threshold in any continuous period of 12 months
(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 section 6(1)(c) or (d), be an accountable person if such supplies were the only supplies made by him or her.
(2)In this Part “control”
(a)in relation to a body corporate, means the power of a person to secure, by means of the holding of shares or the possession of voting power in or in relation to that or any other body corporate, or by virtue of any powers conferred by the articles of association or other document regulating that or any other body corporate, that the affairs of the first-mentioned body corporate are conducted in accordance with the wishes of that person
(b)in relation to a partnership, means the right to a share of more than one-half of the assets, or of more than one-half of the income, of the partnership.
Chapter 2
Part 8 Deductions (ss. 59-64)
Chapter 1 General provisions (ss. 59-62)
59.
Deduction for tax borne or paid.
(1)In this subsection and subsection (2) –
“qualifying activities” means –
(a)transport outside the State of passengers and their accompanying baggage
(b)supplies of goods which, by virtue of section 30, are deemed to have taken place in the territory of another Member State but only if the supplier of those goods is registered for value-added tax in that other Member State
(d)services specified in paragraph 6(1), 7(1) or 8 of Schedule 1 supplied –
(i)outside the Community, or
(ii)directly in connection with the export of goods to a place outside the Community, and
(e)[deleted]
(f)supplies of goods or services outside the State which would be taxable supplies if made in the State;
“qualifying vehicle” means a motor vehicle which, for the purposes of vehicle registration tax, is first registered, in accordance with section 131 of the Finance Act 1992 –
(a)in the period on or after 1 January 2009 and up to 31 December 2020, and has, for the purposes of that registration, a level of CO2 emissions of less than 156g/km, or
(b)on or after 1 January 2021, and has, for the purposes of that registration, a level of CO2 emissions of less than 140g/km.
(2)Subject to subsection (3), in computing the amount of tax payable by an accountable person in respect of a taxable period, that person may, in so far as the goods and services are used by him or her for the purposes of his or her taxable supplies or of any of the qualifying activities, deduct –
(a)the tax charged to him or her during the period by other accountable persons by means of invoices, prepared in the manner prescribed by regulations, in respect of supplies of goods or services to him or her,
(b)in respect of goods imported by him or her in the period, the tax paid by him or her or deferred as established from the relevant customs documents kept by him or her in accordance with section 84(3),
(c)subject to such conditions (if any) as may be specified in regulations, the tax chargeable during the period, being tax for which he or she is liable in respect of intra-Community acquisitions of goods,
(d)subject to section 61 and regulations (if any), 20 per cent of the tax charged to the accountable person by means of invoices or other documents prepared in the manner prescribed by regulations or by relevant customs documents, in respect of the purchase, hiring, intra-Community acquisition or importation of a qualifying vehicle, where that vehicle is used primarily for business purposes, being at least 60 per cent of the use to which that vehicle is put, and where the accountable person subsequently disposes of that vehicle the tax deducted by that person in accordance with this subsection shall be treated as if it were not deductible by that person for the purposes of paragraph 12(c) of Schedule 1,
(e)the tax chargeable during the period, being tax for which the accountable person is liable by virtue of section 1(1) in respect of the supply to such person of gas through the natural gas distribution network, or of heat or cooling energy through heating or cooling networks, or of electricity, but only where the accountable person would be entitled to a deduction of that tax elsewhere under this subsection if that tax had been charged to such person by another accountable person,
(f)the tax chargeable during the period, being tax for which the accountable person is liable by virtue of section 10(2) in respect of goods which are installed or assembled but only where the accountable person would be entitled to a deduction of that tax elsewhere under this subsection if that tax had been charged to such person by another accountable person,
(g)the tax chargeable during the period, being tax for which he or she is liable by virtue of section 12 or 17(1) in respect of services received by him or her,
(h)the tax chargeable during the period, being tax for which the recipient (within the meaning of section 16(2)) is liable by virtue of section 16(2) in respect of greenhouse gas emission allowances (within the meaning of section 16 (2)) received by that recipient, but only where the recipient would be entitled to a deduction of that tax elsewhere under this subsection if that tax had been charged to such recipient by an accountable person,
(i)the tax chargeable during the period, being tax for which the principal is liable by virtue of section 16(3) in respect of construction operations services received by that principal but only where that principal would be entitled to a deduction of that tax elsewhere under this subsection if that tax had been charged to such principal by another accountable person,
(ia)the tax chargeable during the period, being tax for which the recipient (within the meaning of section 16(4)(b)) is liable by virtue of section 16(4)(b) in respect of scrap metal (within the meaning of section 16(4)(a)) received by that recipient, but only where the recipient would be entitled to a deduction of that tax elsewhere under this subsection if that tax had been charged to such recipient by an accountable person,
(ib)the tax chargeable during the period, being tax for which the recipient (within the meaning of section 16(5)(b)) is liable by virtue of section 16(5)(b) in respect of supplies of construction work received by that recipient, but only where that recipient would be entitled to a deduction of that tax elsewhere under this subsection if that tax had been charged to such recipient by an accountable person,
(ic)the tax chargeable during the period, being tax for which the recipient (within the meaning of section 16(6)(b)) is liable by virtue of section 16(6)(b) in respect of supplies of gas or of electricity received by that recipient, but only where that recipient would be entitled to a deduction of that tax elsewhere under this subsection if that tax had been charged to such a recipient by an accountable person,
(id)the tax chargeable during the period, being tax for which the recipient (within the meaning of section 16(7)(b)) is liable by virtue of section 16(7)(b) in respect of a gas or an electricity certificate received by that recipient, but only where that recipient would be entitled to a deduction of that tax elsewhere under this subsection if that tax had been charged to such a recipient by an accountable person,
(j)the tax chargeable during the period, being tax for which the accountable person is liable by virtue of section 16(1), 94(6)(a) or (7) or 95(8)(c) to (e), in respect of a supply to that person of immovable goods,
(k)the tax chargeable during the period in respect of goods (other than supplies of goods referred to in section 30) treated as supplied by him or her in accordance with section 19(1)(f),
(l)subject to and in accordance with regulations, in respect of goods supplied under section 19(1)(h) an amount equal to any residual tax included in the consideration for the supply,
(m)[deleted]
(n)the tax chargeable during the period in respect of services treated as supplied by him or her for consideration in the course or furtherance of his or her business in accordance with section 27(1)(c),
(o)a flat-rate addition, which shall be deemed to be tax, charged to him or her during the period by means of invoices prepared in the manner prescribed by regulations and issued to him or her in accordance with section 86(1),
(p)the tax chargeable during the period, being tax for which he or she is liable by virtue of section 90(5)(a) in respect of investment gold (within the meaning of section 90) received by him or her, and
(q)subject to such conditions (if any) as may be specified in regulations, in respect of goods referred to in section 92, the tax due in the period in accordance with that section.
(2A)[deleted]
(3)Subsection (2) shall not apply to –
(a)an accountable person referred to in section 9(4) or 12(3), or
(b)an accountable person referred to in section 9(6) or 12(5) unless the tax relates to racehorse training services supplied by him or her.
(4)
(a)A person who, by election or in accordance with section 5(2) is deemed to become an accountable person, shall, in accordance with regulations, be entitled, in computing the amount of tax payable by him or her in respect of the first taxable period for which he or she is so deemed to be an accountable person, to treat as tax deductible under subsection (2) such part of the value of the stock-in-trade held by him or her immediately before the commencement of that taxable period as could reasonably be regarded as the amount which he or she would be entitled to claim under subsection (2) if that person had been an accountable person at the time of the delivery to him or her of such stock-in-trade.
(b)No claim shall lie under this subsection for a deduction for the tax relating to any stock-in-trade if, and to the extent that, a deduction under subsection (2) could be claimed apart from this subsection.
(5)Where, in relation to any taxable period, the total amount deductible under this Chapter exceeds the amount which, but for this Chapter, would be payable in respect of such period, the excess shall be refunded to the accountable person in accordance with section 99(1), but subject to section 100.
60. General limits on deductibility.
(1)In this subsection and subsection (2) –
“delegate” means a taxable person or a taxable person’s employee or agent who attends a qualifying conference in the course or furtherance of the taxable person’s business;
“motor vehicles” means motor vehicles designed and constructed for the conveyance of persons by road and sports motor vehicles, estate cars, station wagons, motor cycles, motor scooters, mopeds and auto cycles, whether or not so designed and constructed, excluding vehicles designed and constructed for the carriage of more than 16 persons (inclusive of the driver), invalid carriages and other vehicles of a type designed for use by invalids or infirm persons;
“qualifying accommodation” means the supply to a delegate of a service consisting of the letting of immovable goods or accommodation covered by paragraph 11 of Schedule 3, for a maximum period starting from the night prior to the date on which the qualifying conference commences and ending on the date on which the conference concludes;
“qualifying conference” means a conference or meeting in the course or furtherance of business organised to cater for 50 or more delegates, which takes place at a venue designed and constructed for the purposes of hosting 50 or more delegates and in respect of which the person responsible for organising the conference issues in writing the details of the conference to each taxable person who attends or sends a delegate, and such details shall include –
(a)the location and dates of the conference
(b)the nature of the business being conducted
(c)the number of delegates for whom the conference is organised, and
(d)the name, business address and value-added tax registration number of the person responsible for organising the conference.
(2)
(a)Notwithstanding anything in this Chapter, a deduction of tax under this Chapter shall not be made if, and to the extent that, the tax relates to –
(i)expenditure incurred by the accountable person on food or drink, or accommodation (other than qualifying accommodation in connection with attendance at a qualifying conference), or other personal services, for the accountable person, the accountable person’s agents or employees, except to the extent (if any) that such expenditure is incurred in relation to a supply of services in respect of which that accountable person is accountable for tax,
(ii)expenditure incurred by the accountable 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 accountable person,
(iia)expenditure incurred by the accountable person on the acquisition or development, on or after 1 January 2011, of immovable goods forming part of the assets of a business where such goods are used or to be used for any purpose other than those of the accountable person’s business,
(iii)entertainment expenses incurred by the accountable person, his or her agents or his or her employees,
(iv)subject to section 59(2)(d), the purchase, hiring, intra-Community acquisition or importation of motor vehicles otherwise than as stock-in-trade or for the purpose of the supply thereof by a person supplying financial services of the kind specified in paragraph 6(1)(e) of Schedule 1 in respect of those motor vehicles as part of an agreement of the kind referred to in section 19(1)(c) or for the purposes of a business which consists in whole or part of the hiring of motor vehicles or for use, in a driving school business, for giving driving instruction,
(v)the purchase, intra-Community acquisition or importation of petrol otherwise than as stock-in-trade, or
(vi)the procurement of a supply of contract work where such supply consists of the handing over of goods to which this paragraph applies.
(b)
(i)In subparagraph (i) of paragraph (a), reference to the provision of accommodation includes expenditure by the accountable person on a building, including the fitting out of such building, to provide such accommodation.
(ii)In subparagraph (iii) 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.
(3)Notwithstanding anything in this Chapter, where section 87(3) or (8) or 89(3) has been applied to a supply of goods to an accountable person, that accountable person shall not deduct, in accordance with section 59(2), any tax in relation to the supply to him or her.
61.
Apportionment for dual-use inputs.
(1)In this section –
“deductible supplies or activities” means the supply of taxable goods or taxable services, or the carrying out of qualifying activities within the meaning of section 59(1);
“dual-use inputs” means movable goods or services (other than goods or services on the purchase or acquisition of which, by virtue of section 60(2), a deduction of tax shall not be made, or services related to the development of immovable goods that are subject to Chapter 2) which are not used solely for the purposes of either deductible supplies or activities or non-deductible supplies or activities;
“non-deductible supplies or activities” means the supply of goods or services or the carrying out of activities other than deductible supplies or activities, and, in the case of immovable goods acquired or developed by an accountable person on or after 1 January 2011, includes any activity consisting of the use of those goods, or part of those goods, for any purpose other than the accountable person’s business;
“total supplies and activities” means deductible supplies or activities and non-deductible supplies or activities.
(2)Where an accountable person engages in both deductible supplies or activities and non-deductible supplies or activities, then, in relation to the person’s acquisition of dual-use inputs for the purpose of that person’s business for a period, the person shall be entitled to deduct in accordance with section 59(2) only such proportion of tax, borne or payable on that acquisition, which is calculated in accordance with this section and regulations, as being attributable to his or her deductible supplies or activities and such proportion of tax is, for the purposes of this section, referred to as the “proportion of tax deductible”.
(3)For the purposes of this section, the reference in subsection (2) to “tax, borne or payable” shall, in the case of an acquisition of a qualifying vehicle (within the meaning of section 59(1)) be deemed to be a reference to “20 per cent of the tax, borne or payable”.
(4)Subject to subsection (5), the proportion of tax deductible by an accountable person in a taxable period shall be calculated on the basis of the ratio which the amount of the person’s tax-exclusive turnover from deductible supplies or activities in the accounting year in which that taxable period ends bears to the person’s tax-exclusive turnover from total supplies and activities in that accounting year
(5)Where the proportion of tax deductible calculated in accordance with subsection (4) does not –
(a)correctly reflect the extent to which the dual-use inputs are used for the purposes of the person’s deductible supplies or activities, or
(b)have due regard to the range of the person’s total supplies and activities, the accountable person shall use any other basis which results in a proportion of tax deductible which –
(i)correctly reflects the extent to which the dual-use inputs are used for the purposes of the person’s deductible supplies or activities, and
(ii)has due regard to the range of the person’s total supplies and activities.
(6)Where it is necessary to do so to ensure that the proportion of tax deductible by an accountable person is in accordance with this section, the accountable person shall –
(a)calculate a separate proportion of tax deductible for any part of that person’s business, or
(b)exclude, from the calculation of the proportion of tax deductible, amounts of turnover from incidental transactions by that person of the kind specified in paragraph 6 of Schedule 1 or amounts of turnover from incidental transactions by that person in immovable goods.
(7)The proportion of tax deductible as calculated by an accountable person for a taxable period shall be adjusted in accordance with regulations if, for the accounting year in which the taxable period ends, that proportion does not –
(a)correctly reflect the extent to which the dual-use inputs are used for the purposes of the person’s deductible supplies or activities, or
(b)have due regard to the range of the person’s total supplies and activities.
62.
Reduction of tax deductible in relation to qualifying vehicles.
(1)
(a)This subsection applies where an accountable person deducts tax in relation to the purchase, intra-Community acquisition or importation of a qualifying vehicle (within the meaning of section 59(1)) in accordance with section 59(2)(d), and disposes of that vehicle within 2 years of that purchase, acquisition or importation.
(b)The accountable person shall be obliged to reduce the amount of the tax deductible by that person for the taxable period in which the qualifying vehicle is disposed of by an amount calculated in accordance with the formula –
where –
TDis the amount of tax deducted by that person on the purchase, acquisition or importation of that vehicle, and
Nis a number that is equal to the number of days from the date of purchase, acquisition or importation of that vehicle by that person to the date of disposal by that person, divided by 182 and rounded down to the nearest whole number,
but if that N is greater than 4 then N shall be 4.
(2)
(a)This subsection applies where an accountable person deducts tax in relation to the purchase, intra-Community acquisition or importation of a qualifying vehicle (within the meaning of section 59(1)) in accordance with section 59(2)(d) and that vehicle is subsequently used for less than 60 per cent business purposes in a taxable period.
(b)The accountable person is obliged to reduce the amount of tax deductible by that person for that taxable period by an amount calculated in accordance with the formula –
where –
TDis the amount of tax deducted by that person on the purchase, acquisition or importation of the qualifying vehicle, and
Nis a number that is equal to the number of days from the date of purchase, acquisition or importation of that vehicle by that person to the first day of the taxable period in which that vehicle is used for less than 60 per cent business purposes, divided by 182 and rounded down to the nearest whole number,
but if that N is greater than 4 then N shall be 4.
62A.
Adjustment of tax deductible in relation to unpaid consideration.
(1)Subject to subsection (4), where –
(a)an accountable person has, during a taxable period (referred to in this section as the ‘initial period’), deducted tax in accordance with subsection (2) of section 59, and
(b)the consideration, or part thereof, due to the supplier of the goods or services has not been paid by that accountable person on or before the last day of the third taxable period following the initial period,
that accountable person shall reduce the amount of tax deductible by him or her in accordance with subsection (2).
(2)Where subsection (1) applies, the accountable person shall reduce the amount of tax deductible by him or her, in the third taxable period following the initial period, by an amount calculated in accordance with the following formula, subject to any apportionment arising in accordance with section 61:
(A-B) x C
where –
Ais the total consideration (exclusive of value-added tax),
Bis the consideration or part thereof (exclusive of value-added tax) that has been paid, and
Cis the percentage rate of tax chargeable in relation to the supply of the goods or services.
(3)Where an accountable person has reduced the amount of tax deductible in a taxable period in accordance with subsection (2) and subsequently that accountable person pays the consideration, or part thereof, due to the supplier of the goods or services, that accountable person shall, in the taxable period in which that consideration, or part thereof, was paid, increase the amount of the tax deductible by him or her, by an amount calculated in accordance with the following formula, subject to any apportionment arising in accordance with section 61:
D x C
where –
Dis the consideration or part thereof (exclusive of value-added tax) paid during that period, and
Cis the percentage rate of tax chargeable in relation to the supply of the goods or services.
(4)Where, on or before the due date for submission of the return required under section 76 or 77 relating to the third taxable period after the initial period, an accountable person satisfies the Revenue Commissioners that there are reasonable grounds for not having paid the full consideration, or part thereof, to the supplier on or before the date referred to in subsection (1)(b), this section shall not apply.
(5)The Revenue Commissioners may make regulations in relation to the operation of this section.