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13 1986

FINANCE ACT, 1986

PART III

Value-Added Tax

Interpretation ( Part III ).

79. —In this Part—

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

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

the Act of 1985” means the Finance Act, 1985 .

Amendment of section 1 (interpretation) of Principal Act.

80. —Section 1 of the Principal Act is hereby amended by the insertion in subsection (1) after the definition of “footwear” of the following definition:

“‘free port’ means the land declared to be a free port for the purposes of the Free Ports Act, 1986 (No. 6 of 1986), by order made under section 2 of that Act;”.

Amendment of section 5 (rendering of services) of Principal Act.

81. —Section 5 (inserted by the Act of 1978) of the Principal Act is hereby amended—

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

“(3A) Where a person is in receipt of a service, other than a service specified in the Fourth Schedule, for the purposes of his business and the circumstances are such that value-added tax referred to in Community Council Directive No. 77/388/EEC1 is not payable on the supply or, if it is payable, is, in accordance with the laws of the country in which the supplier has his establishment, repayable to or deductible by the person, that person shall be deemed, for the purposes of this Act, to have himself supplied the service for consideration in the course or furtherance of his business and shall be liable for tax on the supply except where such tax, if it were chargeable, would be wholly deductible under section 12.”, and

(b) in subsection (6)—

(i) by the insertion after paragraph (c) of the following paragraph:

“(d) In confirmation of the provisions contained in the Value-Added Tax (Place of Supply of Certain Services) Regulations, 1985 (S.I. No. 343 of 1985), which regulations are hereby revoked, the place of supply of services consisting of the hiring out of movable goods by a person established outside the Community shall be deemed to be the place where the movable goods are, or are to be, effectively used.”,

and

(ii) by the substitution of the following paragraph for paragraph (e):

“(e) The place of supply of services of any of the descriptions specified in the Fourth Schedule, with the exception of services of the description specified in paragraph (ia) of the said Schedule supplied by a person who has his establishment outside the Community, shall be deemed, for the purposes of this Act, to be—

(i) in case they are received, otherwise than for a business purpose, by a person whose usual place of residence is situated outside the Community, the place where he usually resides,

(ii) in case they are received, for the purposes of any business carried on by him, by a person—

(I) who has his establishment outside the Community and has not also an establishment in the Community, or

(II) who has his establishment in the Community but does not have his establishment or, if he has more than one establishment, his principal establishment in the country in which, but for this subparagraph, the services would be deemed to be supplied,

the place where he has his establishment or, if he has more than one establishment, the establishment of his at which or for the purposes of which the services are most directly used or to be used, as the case may be,

(iii) in case they are received, for the purposes of any business carried on by him, by a person resident in the Community who has no establishment anywhere, the place where he usually resides,

(iv) in case they are received by a department of State, by a local authority or by a body established by statute, and are supplied—

(I) by a person who has his establishment outside the Community and has not also an establishment in the Community, or

(II) by a person who has his establishment in another Member State of the Community, in circumstances in which value-added tax referred to in Community Council Directive No. 77/388/EEC is not payable in that Member State in respect of the supply,

the State,

(v) in any other case, the place specified in subsection (5) that is appropriate to the circumstances.”.

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

82. —Section 8 of the Principal Act is hereby amended by the insertion in subsection (2) (inserted by the Act of 1978) after “section 5 (6) (e) (ii)” of “, (iii) or (iv)”.

Amendment of section 11 (rates of tax) of Principal Act.

83. —Section 11 (inserted by the Act of 1978) of the Principal Act is hereby amended—

(a) in subsection (1)—

(i) in paragraph (a) by the substitution of “25 per cent.” for “23 per cent.”, and

(ii) in paragraph (d) by the substitution of “2.4 per cent.” for “2.2 per cent.”,

and

(b) in subsection (4A) (inserted by the Finance Act, 1973 ) by the substitution of “section 11 (1) (c)” for “section 11 (1) (a)”.

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

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

(a) in subsection (1) (inserted by the Act of 1978) by the insertion after paragraph (d) of the following paragraph:

“(dd) the tax chargeable during the period, being tax for which he is liable by virtue of section 5 (3A), in respect of services received by him,”

and

(b) in subsection (2) by the insertion after “section 20 (1)” of “, but subject to section 20 (1A)”.

Amendment of section 12A (special provisions for tax invoiced by flat-rate farmers) of Principal Act.

85. —Section 12A (inserted by the Act of 1978) of the Principal Act is hereby amended by the substitution of “2.4 per cent.” for “2.2 per cent.” (inserted by the Act of 1985).

Amendment of section 17 (invoices) of Principal Act.

86. —Section 17 of the Principal Act is hereby amended by the insertion after subsection (1) of the following subsection:

“(1A) (a) An invoice or other document required to be issued under this section shall, subject to paragraph (b), be deemed to be so issued if the particulars which are required by regulations to be contained in such invoice or other document, as the case may be, are recorded and retained in an electronic data processing system and are transmitted by electronic means without the issue of any invoice or other document.

(b) An invoice or other document required to be issued under this section shall not be deemed by paragraph (a) to be issued unless the person who is required to issue such invoice or other document, as the case may be, has given to the Revenue Commissioners at least one month's notice in writing that he proposes to keep and retain such records and make such transmissions as are referred to in that paragraph, and he complies with such other conditions as may be specified by regulations.

(c) A person who receives the transmissions referred to in paragraphs (a) and (b) shall not be deemed to be issued with an invoice or other document, as the case may be, required to be issued under this section unless he has given to the Revenue Commissioners at least one month's notice in writing that he proposes to receive such transmissions, and he complies with such other conditions as may be specified by regulations.”.

Amendment of section 20 (refund of tax) of Principal Act.

87. —Section 20 of the Principal Act is hereby amended—

(a) in subsection (1) by the substitution of “Subject to subsection (1A), where” for “Where”,

and

(b) by the insertion after subsection (1) of the following subsection:

“(1A) The Revenue Commissioners may defer repayment of all or part of any tax refundable to any taxable person under subsection (1) where they are satisfied that the business activities of that taxable person are so interlinked with the business activities of one or more other taxable persons that it would have been expedient to apply the provisions of section 8 (8) in relation to all the taxable persons concerned, if the request specified in that section had been made, and any of the said one or more other taxable persons has not furnished all returns and remitted all amounts of tax referred to in section 19 (3).”.

Amendment of section 32 (regulations) of Principal Act.

88. —Section 32 of the Principal Act is hereby amended—

(a) in paragraph (h) by the insertion after “documents” of “or other recorded data”,

and

(b) by the substitution of the following paragraph for paragraph (i):

“(i) the form of invoice, credit note, debit note and settlement voucher, including electronic form, required to be used for the purposes of this Act, the particulars required to be inserted in such documents or electronically recorded and the period within which such documents or electronic data are required to be issued or transmitted and such other conditions in relation to the issue or receipt, in any form, of an invoice, credit note, debit note and settlement voucher as may be imposed by the Revenue Commissioners;”.

Amendment of First Schedule to Principal Act.

89. —The First Schedule (inserted by the Act of 1978) to the Principal Act is hereby amended by the insertion after paragraph (iii) of the following paragraph:

“(iiia) supply by dental technicians of services of a dental nature and of dentures or other dental prostheses;”.

Amendment of Second Schedule to Principal Act.

90. —The Second Schedule (inserted by the Finance Act, 1976 ) to the Principal Act is hereby amended—

(a) in paragraph (i)—

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

“(aa) by a registered person within a free port to another registered person within a free port,”,

and

(ii) by the insertion in subparagraph (b), after “customs-free airport” where that secondly occurs, of “or a free port”,

and

(b) in paragraph (xii)—

(i) by the insertion after “food and drink of a kind used for human consumption” of “, other than the supply thereof specified in paragraph (xic) of the Sixth Schedule”,

and

(ii) by the deletion in subparagraph (e) of “, potato chips”.

Amendment of Sixth Schedule to Principal Act.

91. —The Sixth Schedule (inserted by the Act of 1985) to the Principal Act is hereby amended—

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

“(x) (a) newspapers, normally published daily, the contents of each issue of which consist, wholly or mainly, as regards the quantity of printed matter contained in them, of information on the principal current events and topics of general public interest,

(b) newspapers, normally published at least fort-nightly, which are similar in range and nature of contents to any newspaper of a kind specified in subparagraph (a) and are also similar in format to any newspaper published in the State which is of a kind specified in subparagraph (a);”,

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

“(xia) the provision of food and drink of a kind specified in paragraph (xii) of the Second Schedule in a form suitable for human consumption without further preparation—

(a) by means of a vending machine,

(b) in the course of operating a hotel, restaurant, cafe, refreshment house, canteen, establishment licensed for the sale for consumption on the premises of intoxicating liquor, catering business or similar business, or

(c) in the course of operating any other business in connection with the carrying on of which facilities are provided for the consumption of the food or drink supplied;

(xib) the supply, in the course of the provision of a meal, of goods of a kind specified in subparagraph (c), (d) or (e) of paragraph (xii) of the Second Schedule, and fruit juices other than fruit juices chargeable with a duty of excise—

(a) in the course of operating a hotel, restaurant, cafe, refreshment house, canteen, establishment licensed for the sale for consumption on the premises of intoxicating liquor, catering business or similar business, or

(b) in the course of operating any other business in connection with the carrying on of which facilities are provided for the consumption of the food or drink supplied;

(xic) the supply of food and drink (other than beverages specified in subparagraph (a) or (b) of paragraph (xii) of the Second Schedule) which is, or includes, food or drink which—

(a) has been heated for the purposes of enabling it to be consumed at a temperature above the ambient air temperature, or

(b) has been retained heated after cooking for the purpose of enabling it to be consumed at a temperature above the ambient air temperature, or

(c) is supplied, while still warm after cooking, for the purpose of enabling it to be consumed at a temperature above the ambient air temperature,

and is above the ambient air temperature at the time of supply;

(xid) promotion of and admissions to cinematographic performances;

(xie) promotion of and admissions to live theatrical or musical performances, excluding—

(a) dances to which section 11 (7) relates, and

(b) performances specified in paragraph (viii) of the First Schedule;

(xif) entertainment services, other than dances to which section 11 (7) relates and circuses, supplied in fair-grounds by travelling showmen where, in any particular case, the total period spent in any one locality in relation to a series of successive performances does not exceed 19 consecutive days and an interval of at least one month elapses before the next performance in the same locality;”,

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

“(xiia) services consisting of—

(a) the repair or maintenance of movable goods, or

(b) the alteration of second-hand movable goods,

other than any such services specified in paragraph (v) or (xvi) of the Second Schedule,

but excluding the provision in the course of any such repair, maintenance or alteration service of—

(I) accessories, attachments or batteries, or

(II) tyres, tyre cases, interchangeable tyre treads, inner tubes and tyre flaps, for wheels of all kinds;

(xiib) services consisting of work on immovable goods, other than services consisting of such work specified in paragraph (xiv) and services specified in paragraph (iii);

(xiic) services consisting of the care of the human body, excluding such services specified in the First Schedule, but including services supplied in the course of a health studio business or similar business;”,

and

(d) by the deletion of paragraph (xiii).

1 O.J. No. L145/1 of 13.6.1977.