Value Added Tax Act

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VALUE-ADDED TAX (AMENDMENT) ACT 1978

VALUE-ADDED TAX (AMENDMENT) ACT 1978 – LONG TITLE

AN ACT TO AMEND THE VALUE-ADDED TAX ACT, 1972, AND THE ACTS
AMENDING THAT ACT AND TO PROVIDE FOR RELATED MATTERS.
[20th December, 1978] BE IT ENACTED BY THE OIREACHTAS AS FOLLOWS:

VALUE-ADDED TAX (AMENDMENT) ACT 1978 – SECT 1
Principal Act.

1.—In this Act “the Principal Act” means the Value-Added Tax Act,
1972.

VALUE-ADDED TAX (AMENDMENT) ACT 1978 – SECT 2
Amendment of section 1 of Principal Act.

2.—Section 1 of the Principal Act is hereby amended by—

( a ) the deletion of the definitions of “accountable person”
“established”, “manufacturer”, “rendering” and “residing”;

( b ) the substitution of “‘establishment'” for “‘permanent
establishment'” and

( c ) the insertion of the following definitions:

“‘agricultural produce’ has the meaning assigned to it by section
8;”,

“‘agricultural service’ has the meaning assigned to it by section
8;”,

“‘Community’ means the European Economic Community;”,

“‘farmer’ has the meaning assigned to it by section 8;”,

“‘flat-rate addition’ has the meaning assigned to it by section
12A;”,

“‘flat-rate farmer’ has the meaning assigned to it by section 12A;”,

“‘supply’, in relation to goods, has the meaning assigned to it by
section 3 and, in relation to services, has the meaning assigned to
it by section 5, and cognate words shall be construed accordingly;
and

“‘taxable person’ has the meaning assigned to it by section 8;”.

VALUE-ADDED TAX (AMENDMENT) ACT 1978 – SECT 3
Amendment of section 2 of Principal Act.

3.—Section 2 (1) of the Principal Act is hereby amended by the

substitution for paragraph (a) of the following paragraph:

“( a ) on the supply of goods and services effected within the
State for consideration by a taxable person in the course or
furtherance of any business carried on by him, and”.

VALUE-ADDED TAX (AMENDMENT) ACT 1978 – SECT 4
Amendment of section 3 of Principal Act.

4.—Section 3 of the Principal Act is hereby amended—

( a ) by the substitution in subsection (1) of “In this Act
‘supply’, in relation to goods, means—” for “In this Act ‘delivery’,
in relation to goods, shall, subject to subsection (1A), include—”,

and of the following paragraphs for paragraphs (e) and (f):

“( e ) the application (otherwise than by way of disposal to
another person) by a person for the purposes of any business
carried on by him of the goods, being goods which were developed,
constructed, assembled, manufactured, produced, extracted, purchased or
imported by him or by another person on his behalf, except where
tax chargeable in relation to the application would, if it were
charged, be wholly deductible under section 12, and

( f ) the appropriation by a taxable person for any purpose other
than the purpose of his business or the disposal free of charge of
the goods where tax chargeable in relation to the goods—

(i) upon their acquisition by the taxable person, if they had been
so acquired, or

(ii) upon their development, construction, assembly, manufacture,
production, extraction, importation or application under paragraph (e)
,

as the case may be, was wholly or partly deductible under section
12,”,.

( b ) by the substitution of the following subsection for
subsection (1A):

“(1A) Anything which is a supply of goods by virtue of paragraph
(e) or (f) of subsection (1) shall be deemed, for the purposes of
this Act, to have been effected for consideration in the course or
furtherance of the business concerned:

Provided, however, that the following shall not be deemed to have
been effected for consideration, that is to say:

( a ) a gift of goods made in the course or furtherance of the
business (otherwise than as one forming part of a series or
succession of gifts made to the same person) the cost of which to
the donor does not exceed a sum specified for that purpose in
regulations,

( b ) the gift, in reasonable quantity, to the actual or potential
customer, of industrial samples in a form not ordinarily available
for sale to the public,”,

( c ) by the insertion of the following subsection:

“(1B) The provision of electricity, gas and any form of power,
heat, refrigeration or ventilation shall be deemed, for the purposes
of this Act, to be a supply of goods and not a supply of
services.”, and

( d ) by the substitution for subsection (3) of the following
subsection:

“(3) ( a ) The supply by auction of goods being—

(i) livestock, horses, greyhounds, vegetables, fruit, flowers, poultry
,
eggs or fish, or

(ii) immovable goods supplied in circumstances in which tax is not
chargeable,

shall be deemed, for the purposes of this Act, to constitute a
supply of the goods to and simultaneously by the auctioneer.

( b ) The supply through an estate agent or other agent of—

(i) livestock, horses or greyhounds, or

(ii) immovable goods supplied in circumstances in which tax is not
chargeable,

shall be deemed, for the purposes of this Act, to constitute a
supply of the goods to and simultaneously by the agent.”.

VALUE-ADDED TAX (AMENDMENT) ACT 1978 – SECT 5
Supply of services.

5.—The following section shall be substituted for section 5 of the
Principal Act:

“5. (1) In this Act ‘supply’, in relation to a service, means the
performance or omission of any act or the toleration of any
situation other than the supply of goods and other than a
transaction specified in section 3 (5).

(2) 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,

shall be deemed, for the purposes of this Act, to be a supply of
services and not a supply of goods.

(3) Any of the following shall, if so provided by regulations, and
in accordance therewith, be deemed, for the purposes of this Act,
to be a supply of services by a person for consideration in the
course or furtherance of his business—

( a ) the use of goods forming part of the assets of his
business for purposes other than those of his business,

( b ) the supply by him of services for his own private or
personal use and the supply by him of services free of charge for
the private or personal use of his staff or for any purposes other
than those of his business,

( c ) the supply of services for his own private or personal use
or that of his staff, for the supply of which he provides
materials or facilities or towards the cost of which he contributes
in whole or in part,

( d ) the supply by him of services, other than those referred to
in the preceding paragraphs of this subsection, for the purposes of
his business except where tax on such services, if it were
chargeable, would be wholly deductible under section 12.

(4) The supply of services through a person (in this subsection
referred to as the agent) who, while purporting to act on his own
behalf, concludes agreements in his own name but on the instructions
of and for the account of another person, shall be deemed, for the
purposes of this Act, to constitute a supply of the services to
and simultaneously by the agent.

(5) Subject to subsections (6) and (7), the place where a service
is supplied shall be deemed, for the purposes of this Act, to be
the place where the person supplying the service has his
establishment or (if more than one) the establishment of his which
is most concerned with the supply or (if he has no establishment)
his usual place of residence.

(6) ( a ) The place of supply of services connected with immovable
goods, including the services of estate agents, architects and firms
providing on-site supervision in relation to such goods, shall be
deemed, for the purposes of this Act, to be the place where the
goods are situated.

( b ) Transport services shall be deemed, for the purposes of this
Act, to be supplied where the transport takes place.

( c ) The following services shall be deemed, for the purposes of
this Act, to be supplied where they are physically performed:

(i) cultural, artistic, sporting, scientific, educational,
entertainment
or similar services.

(ii) ancillary transport activities such as loading, unloading and
handling,

(iii) valuation of movable goods,

(iv) work on movable goods,

( d ) he place of supply of services consisting of the hiring out
of movable goods (other than means of transport) which are exported
by the person from whom they are hired from one member State of
the Community with a view to their being used in another such
member State shall be deemed, for the purposes of this Act, to be
the place of utilisation.

( e ) The place of supply of services of any of the descriptions
specified in the Fourth Schedule 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 by a person who has no
establishment in the country in which, but for this subparagraph,
the services would be deemed to be supplied and are so received
for the purposes of any business carried on by him, the place
where he has his establishment or (if more than one) the
establishment of his at which or for the purposes of which the
services are most directly used or to be used or (if he has no
establishment anywhere) the place where he usually resides,

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

(7) Provision may be made by regulations for varying, in relation
to services generally or of a description specified therein, the
rules for determining their place of supply, and for that purpose
the Fourth Schedule may be added to or varied.

(8) The transfer of the goodwill or other intangible assets of a
business, in connection with the transfer of the business or part
thereof, to another taxable person shall be deemed, for the purposes
of this Act, not to be a supply of services.”.

VALUE-ADDED TAX (AMENDMENT) ACT 1978 – SECT 6
Amendment of section 8 of Principal Act.

6.—Section 8 of the Principal Act is hereby amended by the
substitution of the following subsections for subsections (1), (2),
(3), (7), (8) and (9):

“(1) A person who, otherwise than as an employee of another person,
engages in the supply, within the State, of taxable goods or
services in the course of business shall, in addition to the
persons referred to in section 4 (5) and subsections (2) and (2A),

be a taxable person and shall be accountable for and liable to pay
the tax charged in respect of such supply.

(2) Where by virtue of section 5 (6) (e) (ii) a taxable service
that, apart from that provision, would be treated as supplied
abroad, is deemed to be supplied in the State, the person who
receives the service shall, in relation thereto, be a taxable person
and be liable to pay the tax charged as if he had himself
supplied the service for consideration in the course or furtherance
of his business.

( 2A ) ( a ) The Minister may, following such consultations as he
may deem appropriate, by order provide that the State and every
local authority shall be taxable persons with respect to specified
categories of supplies made by them of goods or services and,
accordingly, during the continuance in force of any such order but
not otherwise, the State and every local authority shall be
accountable for and liable to pay tax in respect of any such
supplies made by them as if the supplies had been made in the
course of business.

( b ) The Minister may by order amend or revoke an order under
this subsection, including an order under this paragraph.

( c ) An order under this subsection 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
twenty-one 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.

(3) The following persons shall not, unless they otherwise elect and
then only during the period for which such election has effect, be
taxable persons—

( a ) a farmer,

( b ) a person whose supplies of taxable, goods or services
consist exclusively of—

(i) supplies to taxable persons and persons to whom section 13 (3)
applies of fish (not further processed than gutted, salted and
frozen) which he has caught in the course of a sea-fishing
business,

(ii) supplies of machinery, plant or other equipment which have been
used by him in the course of a sea-fishing business, and

(iii) supplies of goods and services, other than those referred to
in subparagraphs (i) and (ii), the total consideration for which has

not exceeded and is not likely to exceed £3,000 in any period
consisting of 6 consecutive taxable periods,

( c ) (i) subject to subparagraph (ii), a person for whose supply
of taxable goods and services the total consideration has not
exceeded and is not likely to exceed £3,000 in any taxable period,

(ii) subparagraph (i) shall apply if, but only if, not less than
90 per cent. of the total consideration referred to therein is

derived from the supply of taxable goods which the person has
imported or which have been supplied to him by other taxable
persons or which, being goods of a kind chargeable with tax at the
rate of zero per cent., were supplied to him by persons other than
taxable persons and not less than 50 per cent. of such
consideration is derived from the supply of goods and services
chargeable with tax at either of the rates for the time being
specified in paragraph (a) or (b) of section 11 (1),

( d ) (i) subject to subparagraph (ii), a person for whose supply
of taxable goods and services the total consideration has not
exceeded and is not likely to exceed £1,500 in any taxable period,

(ii) subparagraph (i) shall apply if, but only if, not less than
90 per cent. of the total consideration referred to therein is
derived from the supply of taxable goods.

( e ) a person, other than a person to whom paragraph (a), (b),
(c) or (d) applies, for whose supply of taxable goods and services
the total consideration has not exceeded and is not likely to
exceed £500 in any taxable period.

(7) Where any goods or services are provided by a club or other
similar organisation in respect of a payment of money by any of
its members, then, for the purposes of this Act, the provision of
the goods or services shall be deemed to be a supply by the club
or other organisation of the goods or services (as the case may
be) in the course or furtherance of a business carried on by it
and the money shall be deemed to be consideration for the supply.

(8) Provision may be made by regulations whereby, if the Revenue
Commissioners are satisfied that the business activities of two or
more taxable persons are so interlinked that it would be expedient,
in the interest of efficient administration of the tax to do so,
then at the request of the taxable persons concerned—

( a ) those activities may be deemed, for the purpose of this
Act, to be carried on by any one of the persons and all
transactions by or between such persons shall be deemed, for those
purposes, to be transactions by that one person and all other
rights and obligations under this Act shall be determined
accordingly, and

( b ) each such person may be made jointly and severally liable
to comply with all the provisions of this Act and regulations
(including the provisions requiring the payment of tax) that apply
to those persons and subject to the penalties under this Act to
which they would be subject if each such person was liable to pay
to the Revenue Commissioners the whole of the tax chargeable, apart
from regulations under this subsection, in respect of all such
persons.

(9) In this Act—

‘agricultural produce’ means, in relation to a farmer, goods, other
than live horses and live greyhounds, produced by him in the course
of an Annex A activity;

‘agricultural service’ means, in relation to a farmer, any Annex B
service supplied by him using his own labour or that of his
employees or effected by means of machinery, plant or other
equipment normally used for the purposes of an Annex A activity
carried on by him;

‘Annex A activity’ means any activity of a description specified in
Annex A (which is set out in Part 1 of the Fifth Schedule) of
Council Directive No. 77/388/EEC of 17 May, 1977 (OJ No. L 14511
13.6.1977);

‘Annex B service’ means any service of a description specified in
Annex B (which is set out in Part II of the Fifth Schedule) of
the said Council Directive;

‘farmer’ means a person who engages in at least one Annex A
activity and whose supplies of taxable goods and services in the
course of business consist exclusively of—

( a ) supplies of agricultural produce,

( b ) supplies of agricultural services,

( c ) supplies of machinery, plant or other equipment which has
been used by him for the purposes of an Annex A activity, and

( d ) supplies of goods and services, other than those referred to
in paragraphs (a), (b) and (c), the total consideration for which
has not exceeded and is not likely to exceed £3.000 in any period
consisting of six consecutive taxable periods.”.

VALUE-ADDED TAX (AMENDMENT) ACT 1978 – SECT 7
Amendment of section 9 of Principal Act.

7.—Section 9 of the Principal Act is hereby amended by the
substitution of the following subsection for subsection (1):

(1) The Revenue Commissioners shall set up and maintain a register
of persons who may become or who are taxable persons.”.

VALUE-ADDED TAX (AMENDMENT) ACT 1978 – SECT 8
Amount on which tax is chargeable.

8.—The following section shall be substituted for section 10 of the
Principal Act:

“10. (1) The amount on which tax is chargeable by virtue of
section 2 (1) (a) shall, subject to this section, be the total
consideration which the person supplying goods or services becomes
entitled to receive in respect of or in relation to such supply of
goods or services, including all taxes, commissions, costs and
charges whatsoever but not including value-added tax chargeable in
respect of the supply.

(2) If the consideration referred to in subsection (1) does not
consist of or does not consist wholly of an amount of money, the

amount on which tax is chargeable shall be the total amount of
money which might reasonably be expected to be charged if the
consideration consisted entirely of an amount of money equal to the
open market price:

Provided that in computing the amount on which tax is chargeable as
aforesaid a deduction may be made for the open market price of
second-hand movable goods given in exchange or part exchange for
goods, whether new or second-hand, of the same kind—

(3) ( a ) If for any non-business reason the actual consideration
in relation to the supply of any goods or services is less than
that which might reasonably be expected to be received if the
consideration were an amount equal to the open market price or
there is no consideration, the amount on which tax is chargeable
shall be the open market price.

( b ) If the consideration actually received in relation to the
supply of any goods or services exceeds the amount which the person
supplying the goods or services was entitled to receive, the amount
on which tax is chargeable shall be the amount actually received,
excluding tax chargeable in respect of the supply.

( c ) If, in a case not coming within paragraph (a), the
consideration actually received in relation to the supply of any
goods or services is less than the amount on which tax is
chargeable or no consideration is actually received, such relief may
be given by repayment or otherwise in respect of the deficiency as
may be provided by regulations.

(4) The amount on which tax is chargeable in relation to a supply
of goods referred to in paragraph (d) (ii), (e) or (f) of sectio
n
3 (1) or a supply of services by virtue of regulations made for
the purposes of section 5 (3) shall be the cost, excluding tax, of
the goods to the person supplying the goods or the cost, excluding
tax, of supplying the services, as the case may be.

(5) The amount on which tax is chargeable in relation to services
for the tax chargeable on which the recipient is, by virtue of
section 8 (2), liable shall be the consideration for which the
services were in fact supplied to him.

(6) Where a right to receive goods or services for an amount
stated on any token, stamp, coupon or voucher is granted for a
consideration, the consideration shall be disregarded for the purposes
of this Act except to the extent (if any) that it exceeds that
amount.

(7) Provision may be made by regulations for the purpose of
determining the amount on which tax is chargeable in relation to
one or more of the following:

( a ) supplies of goods and services to which an order under
section 8 (2A) applies,

( b ) supplies of stamps, coupons, tokens or vouchers when supplied
as things in action (not being stamps, coupons, tokens or vouchers

specified in subsection (6)),

( c ) supplies of goods or services wholly or partly in exchange
for stamps, coupons, tokens or vouchers of a kind specified in
subsection (6) or paragraph (b),

( d ) supplies deemed, pursuant to subsection (3) or (4) of
section 3, to be made to and by the persons therein mentioned,

and such regulations may, in the case of supplies referred to in
paragraph (b), provide that the amount on which tax is chargeable
shall be nil.

(8) ( a ) Where the value of movable goods (not being goods of a
kind specified in paragraph (xii) of the Second Schedule) provided
under an agreement for the supply of services exceeds two-thirds of
the total consideration under the agreement for the provision of
those goods and the supply of the services, other than transport
services in relation to them, the consideration shall be deemed to
be referable solely to the supply of the goods and tax shall be
charged at the appropriate rate or rates specified in section 11 on
the basis of any apportionment of the total consideration made in
accordance with paragraph (b).

( b ) Where goods of different kinds are provided under an
agreement of the kind referred to in paragraph (a), the amount of
the consideration referable to the supply of goods of each kind
shall be ascertained for the purposes of that paragraph by
apportioning the total consideration in proportion to the value of
the goods of each kind provided.

( c ) This subsection shall also apply to an agreement for the
supply of immovable goods and, accordingly, the references in
paragraphs (a) and (b) to an agreement for the supply of services
shall be deemed to include a reference to such an agreement.

(9) ( a ) On the supply of immovable goods and on the supply of
services consisting of the development of immovable goods, the value
of any interest in the goods disposed of in connection with the
supply shall be included in the consideration.

( b ) The value of any interest in immovable goods shall be the
open market price of such interest.

(10) In this section—

‘interest’, in relation to immovable goods, and ‘disposal’, in
relation to any such interest, shall be construed in accordance with
section 4 (1);

‘the open market price’, in relation to the supply of any goods or
services, means the price, excluding tax, which the goods might
reasonably be expected to fetch or which might reasonably be
expected to be charged for the services if sold in the open market
at the time of the event in question.”.

VALUE-ADDED TAX (AMENDMENT) ACT 1978 – SECT 9

Amendment of section 11 of Principal Act.

9.—Section 11 of the Principal Act is hereby amended by the
substitution of the following subsections for subsections (1), (2),
(3) and (4A):

“(1) Tax shall, subject to subsection (2), be charged at whichever
of the following rates is appropriate in any particular case—

( a ) 10 per cent. of the amount on which tax is chargeable in
relation to the supply of goods of a kind specified in Part I of
the Third Schedule or the supply of services of a kind specified
in Part II of that Schedule.

( b ) zero per cent. of the amount on which tax is chargeable in
relation to the supply of any goods in the circumstances specified
in paragraph (i) of the Second Schedule or the supply of goods of
a kind specified in paragraphs (v) (a) and (b), (vii), (viii),
(x),
(xii) to (xv) and (xvii) to (xx) of that Schedule or the supply
of services of a kind specified in that Schedule, and

( c ) 20 per cent. of the amount on which tax is chargeable in
relation to the supply of any other goods or services.

(2) ( a ) In relation to the supply of livestock, tax shall be
chargeable at the rate specified in subsection (1) (a) on 10 per
cent. of the total amount on which tax is chargeable and at the
rate of zero per cent. on the balance of the said total amount.

( b ) On the supply of immovable goods and on the supply of
services consisting of the development of immovable goods, or the
maintenance and repair of those goods including the installation of
fixtures, if the value of movable goods (if any) provided in
pursuance of the agreement for making any such supply does not
exceed two-thirds of the total amount on which tax is chargeable in
respect of the agreement, tax shall be chargeable at the rate
specified in subsection (1) (a) on 30 per cent. of the total
amount on which tax is chargeable and at the rate of zero per
cent. on the balance of the said total amount.

(3) Subject to section 10 (8), where—

( a ) supplies of different kinds are made for a consideration in
money which is referable to all the supplies and not separately to
the different kinds of supplies, and

( b ) one or both of the following subparagraphs applies or apply,
that is to say—

(i) but for this subsection, tax would not be chargeable in respect
of one or more (but not all) of the supplies,

(ii) but for this subsection, tax would (apart from subsection (2))

fall to be charged at two or more of the rates specified in
subsection (1) in respect of the supplies,

then, unless regulations provide for apportionment of the

consideration—

( c ) where subparagraph (i) (but not subparagraph (ii)) of
paragraph (b) applies, tax shall be chargeable in respect of all
the supplies at the rate specified in subsection (1) appropriate to
the supply of taxable goods or services included in the supplies,

( d ) where subparagraph (ii) of paragraph (b) applies (whether
alone or with subparagraph (i) of that paragraph), tax shall be
chargeable in respect of all the supplies at the higher or highest
rate (as the case may be) specified in subsection (1) appropriate
to the supply of any taxable goods or services included in the
supplies:

Provided that, where goods

(I) are chargeable with tax at different rates,

(II) are packaged for sale as a unit, and

(III) are offered for sale for a consideration in money which is
referable to the package as a whole and not to the different kinds
of goods included therein,

the inclusion in the package of goods chargeable at a particular
rate shall not be taken into account for the purpose of the
preceding provisions of this subsection where the total tax-exclusive
value of such goods does not exceed 50 per cent of the total
tax-exclusive consideration for the package or 5 pence, whichever is
the lesser, and, in any such case, the rate of tax chargeable in
relation to the package shall be determined by reference to the
other goods included therein.

(4A) Where—

( a ) goods of a kind specified in paragraph (xii) of the Second
Schedule are used by a person in the course of the supply by him
of taxable services, and

( b ) the goods are provided by or on behalf of the person to
whom the services are supplied,

the person who supplies the taxable services shall be liable in
respect thereof, in addition to any other liability imposed on him
under this Act, to pay tax on the value of the goods so used at
the rate specified in section 11 (1) (a).”.

VALUE-ADDED TAX (AMENDMENT) ACT 1978 – SECT 10
Amendment of section 12 of Principal Act.

10.—Section 12 of the Principal Act is hereby amended by the
substitution of the following subsections for subsections (1) and
(3):

“(1) In computing the amount of tax payable by a taxable person in
respect of a taxable period there may be deducted—

( a ) the tax charged to him during the period by other taxable
persons by means of invoices, prepared in the manner prescribed by
regulations, in respect of supplies of goods or services to him.

( b ) the tax paid by him during the period, or payable by him
in relation to the period, in respect of goods imported by him,

( c ) the tax chargeable during the period in respect of goods
applied for the purposes of his business and treated as supplied in
accordance with section 3 (1) (e),

( d ) the tax chargeable during the period in respect of services
carried out by him for the purposes of his business and treated as
supplied by him for consideration in the course or furtherance of
his business in accordance with section 5 (3) (d),

( e ) the tax chargeable during the period, being tax for which
he is liable by virtue of section 8 (2), in respect of services
received by him, and

( f ) tax charged to him during the period by means of invoices
prepared in the manner prescribed by regulations and issued to him
in accordance with section 12A.

(3) ( a ) Notwithstanding anything in subsection (1), a deduction
of tax under that subsection shall not be made if, and to the
extent that, the tax relates to—

(i) the provision of food or drink, or accommodation or other
personal services, for the taxable person, his agents or his
employees, except to the extent, if any, that such provision
constitutes a supply of services in respect of which he is
accountable for tax,

(ii) entertainment expenses incurred by the taxable person, his
agents or his employees.

(iii) the acquisition (including hiring) of motor vehicles otherwise

than as stock-in-trade 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,

(iv) the purchase of petrol otherwise than as stock-in-trade, or

(v) goods or services used by the taxable person for the purposes
of an exempted activity (whether carried on in the State or
elsewhere) or for purposes other than those of his business.

but subparagraph (v) shall not operate to prevent a deduction of
tax if, and to the extent that, the tax relates to goods and
services used for the purposes of any of the following activities:

(I) transport outside the State of passengers and their accompanying
baggage,

(II) services specified in paragraph (i), (xi) or (xii) of the
First Schedule, and agency services in regard thereto, supplied

outside the Community, and

(III) insurance services and the provision of credit, and agency
services in regard thereto, directly in connection with the export
of goods to a place outside the Community.

( b ) In paragraph (a) of this subsection ‘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
designed and constructed for the purpose aforesaid, 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.”.

VALUE-ADDED TAX (AMENDMENT) ACT 1978 – SECT 11
Special provisions for tax invoiced by flat-rate farmers.

11.—The following section shall be inserted after section 12 of the
Principal Act:

“12A. (1) Where a flat-rate farmer supplies agricultural produce or
an agricultural service to a person, the farmer shall, subject to
section 17 (2), issue to the person an invoice indicating the
consideration (exclusive of the flat-rate addition) in respect of the
supply and an amount (in this Act referred to as ‘a flat-rate
addition’) equal to 1 per cent. of the said consideration (exclusive
of the said addition), and the person shall, if he is a taxable
person, be entitled to treat the flat-rate addition as tax
deductible under section 12 subject, however, to any restrictions
imposed by or under subsection (3) or (4) of that section.

(2) In this Act ‘flat-rate farmer’ means a farmer who is not a
taxable person.”.

VALUE-ADDED TAX (AMENDMENT) ACT 1978 – SECT 12
Remission of tax on goods exported, do.

12.—The following section shall be inserted after section 12A
(inserted by this Act) of the Principal Act:

“13. (1) 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 Revenue
Commissioners are satisfied—

( a ) that the goods have been or are to be exported,

( b ) that the goods have been shipped on board an aircraft or
ship proceeding to a place outside the State,

( c ) that the goods are, or are to be used in, a fishing
vessel used or to be used for the purposes of commercial sea
fishing.

(2) 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 all or any one or more (as may be
specified in the regulations) of the following services:

( a ) services directly linked to the export of goods or the
transit of goods from a place outside the State to another place
outside the State,

( b ) the repair, maintenance and hiring of plant or equipment
used in a vessel or an aircraft specified in paragraph (v) of the
Second Schedule,

( c ) 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.

(3) ( a ) The Revenue Commissioners shall, in accordance with
regulations, repay to a person to whom this subsection applies,
deductible tax chargeable in respect of supplies of goods or
services to him or in respect of goods imported by him.

( b ) This subsection applies to a person who shows to the
satisfaction of the Revenue Commissioners that he carries on a
business outside the State and that he supplies no goods or
services in the State.

( c ) In this subsection “deductible tax”, in relation to a person
to whom this subsection applies, means tax chargeable in respect of
goods or services used by him for the purposes of any business
carried on by him to the extent that such tax would be deductible
by him under section 12 if the business were carried on by him
within the State but does not include tax chargeable in respect of
goods for supply within the State or for hiring out for utilisation
within the State.

(4) Where imported goods chargeable with tax under section 2 (1)
(b) are supplied while warehoused and before the tax becomes due,
the supply shall be disregarded for the purposes of this Act if it
is made under an agreement in writing requiring the purchaser to
account for such tax and, in such a case, the purchaser shall be
deemed, for the purposes of sections 15 and 27 (4), to have
imported the goods.

(5) Where goods chargeable with a duty of excise on their
manufacture or production are supplied while warehoused and before
payment of the duty, then—

( a ) if there is more than one such supply, any but the last
such supply shall be disregarded for the purposes of this Act,

( b ) the amount on which tax is chargeable in relation to such
supply or the last such supply (as the case may be) shall be
increased by the amount of the duty, and

( c ) the tax chargeable on the supply shall be payable, together

with the duty, by the person by whom the duty is paid:

Provided that regulations may—

( a ) make provision for enabling goods which are supplied as
aforesaid and are so supplied to a registered person for the
purposes of a business carried on by him to be removed from
warehouse, subject to such conditions or restrictions as may be
specified in the regulations or as the Revenue Commissioners may
impose, without payment of the tax on the supply and

( b ) provide that tax be accounted for by him in the return,
made by him under section 19 (3), in respect of the taxable period
during which the goods are so removed.”.

VALUE-ADDED TAX (AMENDMENT) ACT 1978 – SECT 13
Determination of tax due by reference to cash receipts.

13.—The following section is hereby substituted for section 14 of
the Principal Act:

“14. (1) ( a ) A person who satisfies the Revenue Commissioners
that, taking one period with another, he derives not less than 90
per cent. of his turnover from the supply of taxable goods or
services to persons who are not registered persons may, in
accordance with regulations, be authorised to determine the amount of
tax which becomes due by him during any taxable period (or part
thereof) during which the authorisation has effect by reference to
the amount of the moneys which he receives during such taxable
period (or part thereof) in respect of supplies, whether made
before, on or after the specified day, of taxable goods and
services.

( b ) A person, other than a person to whom paragraph (a)
applies, may, in accordance with regulations, be authorised to
determine the amount of tax referable to taxable services which
becomes due by him during any taxable period (or part thereof)
during which the authorisation has effect by reference to the amount
of the moneys which he receives during such taxable period (or part
thereof) in respect of the supply, whether before, on or after the
specified day, of taxable services.

(2) The Revenue Commissioners may, in accordance with regulations,
cancel an authorisation under paragraph (a) or (b) of subsection
(1), and may, by regulations, exclude from the application of the
said paragraphs (a) and (b) any tax due in respect of specified
descriptions of supplies of goods or services and any moneys
received in respect of such supplies.”.

VALUE-ADDED TAX (AMENDMENT) ACT 1978 – SECT 14
Charge of tax on imported goods.

14.—The following section is hereby substituted for section 15 of
the Principal Act:

“15. (1) Subject to subsection (2), section 14 shall not apply to
tax provided for by section 2 (1) (b) and that tax shall be

charged—

( a ) on goods of a kind specified in Part I of the Third
Schedule at the percentage specified in section 11 (1) (a) of the
value of the goods.

( b ) on all other goods at the percentage specified in section
11 (1) (c) of the value of the goods.

(2) Tax as aforesaid shall not be charged on goods of a kind
specified in paragraphs (xviii), (xx) and (xxi) of the First
Schedule and paragraphs (v), (vii), (viii), (x), (xii) to (xv
) and
(xvii) to (xx) of the Second Schedule.

(3) The value of imported goods for the purposes of this section
shall be their value determined in accordance with the acts for the
time being in force adopted by the institutions of the Community
relating to the valuation of goods for customs purposes, modified by
the substitution of references to the territory of the State for
references to the customs territory of the Community, together with
any taxes, duties and other charges levied either outside or, by
reason of importation, within the State (except value-added tax) on
the goods and not included in the determination.

(4) Notwithstanding subsection (3), the value of imported livestock
for the purposes of this section shall be 10 per cent. of their
value as ascertained in accordance with that subsection.

(5) The Revenue Commissioners may, in accordance with regulations,
remit or repay, if they think fit, the whole or part of the tax
chargeable—

( a ) on the importation of any goods which are shown to their
satisfaction to have been previously exported,

( b ) on the importation of any goods if they are satisfied that
the goods have been or are to be re-exported,

( c ) on the importation of any goods from the customs free
airport by an unregistered person who shows to the satisfaction of
the Revenue Commissioners that be has already borne tax on the
goods.

(6) Subject to the foregoing provisions of this section, the
provisions of the Customs Consolidation Act, 1876, and of other law
in force in the State relating to customs shall apply, with such
exceptions and modifications (if any) as may be specified in
regulations, to tax referred to in this section as if it were a
duty of customs.

(7) Regulations may—

( a ) make provision for enabling goods imported by registered
persons or by such classes of registered persons as may be
specified in the regulations for the purposes of a business carried
on by them to be delivered or removed, subject to such conditions
or restrictions as may be specified in the regulations or as the

Revenue Commissioners may impose, without payment of the tax
chargeable on the importation, and

( b ) provide that the tax be accounted for by the persons or
classes of persons aforesaid in the return, made by them under
section 19 (3), in respect of the taxable period during which the
goods are so delivered or removed.”.

VALUE-ADDED TAX (AMENDMENT) ACT 1978 – SECT 15
Amendment of section 17 of Principal Act.

15.—Section 17 of the Principal Act is hereby amended—

( a ) by the insertion, after subsection (1), of the following
subsection:

“(2) A flat-rate farmer who, in accordance with section 12A, is
required to issue an invoice in respect of the supply of
agricultural produce or an agricultural service shall, in respect of
each such supply, issue an invoice in the form and containing such
particulars (in addition to those specified in the said section 12A)
as may be specified by regulations if the following conditions are
fulfilled:

( a ) the issue of an invoice is requested by a taxable person,

( b ) the taxable person provides the form for the purpose of the
invoice and enters the appropriate particulars thereon, and

( c ) the taxable person gives to the flat-rate farmer a copy of
the invoice,

but may issue the invoice if those conditions or any of them are
not fulfilled:”,

( b ) by the insertion, after subsection (3), of the following
subsection:

“(4) Where subsequent to the issue by a flat-rate farmer of an
invoice in accordance with subsection (2), the consideration as
stated on the invoice is increased or reduced, or a discount is
allowed, whichever of the following provisions is appropriate shall
have effect:

( a ) in case the consideration is increased, the flat-rate farmer
shall issue another invoice (if the conditions referred to in
subsection (2) are fulfilled in relation to it) containing
particulars of the increase and of the flat-rate addition appropriate
thereto and in such form and containing such other particulars as
may be specified by regulations and such other invoice shall be
deemed, for the purposes of section 12, to be issued in accordance
with section 12A, but the said farmer may issue the invoice if the
said conditions or any of them are not fulfilled,

( b ) in case the consideration is reduced or a discount is
allowed, the flat-rate farmer shall, if the person to whom the
supply was made is a taxable person, issue a document (in this

section referred to as ‘a farmer credit note’) containing particulars
of the reduction or discount and in such form and containing such
other particulars as may be specified by regulations, and the amount
which the taxable person may deduct under section 12 shall, in
accordance with regulations, be reduced by an amount equal to the
amount of the flat-rate addition appropriate to the amount of the
reduction or discount.”,

( c ) by the insertion after subsection (6) of the following
subsection:

“(6A) ( a ) If a person, other than a flat-rate farmer, issues an
invoice stating an amount of flat-rate addition, he shall be liable
to pay to the Revenue Commissioners as tax the amount of flat-rate
addition stated and shall, in relation to such amount, be deemed,
for the purposes of this Act, to be a taxable person.

( b ) If a flat-rate farmer issues an invoice stating an amount
of flat-rate addition otherwise than in respect of an actual supply
of agricultural produce or an agricultural service or in respect of
such a supply but stating a greater amount of flat-rate addition
than is appropriate to the supply, he shall be liable to pay to
the Revenue Commissioners as tax the amount or the excess amount,
as the case may be, of the flat-rate addition stated and shall, in
relation to such amount or such excess amount, be deemed, for the
purposes of this Act, to be a taxable person.

( c ) If a flat-rate farmer, in a case in which he is required
to issue a farmer credit note under subsection (4) (b), fails to
issue the credit note within the time allowed by regulations or
issues a credit note stating a lesser amount of flat-rate addition
than is appropriate to the reduction in consideration or the
discount, he shall be liable to pay to the Revenue Commissioners as
tax the amount of flat-rate addition which should have been stated
on the credit note or the amount of the deficiency of flat-rate
addition, as the case may be, and shall, in relation to such
amount or such deficiency, be deemed, for the purposes of this Act,
to be a taxable person.”,

( d ) by the insertion in subsection (8), after “subsection (1)”
of “or subsection (2), as may be appropriate,”,

( e ) by the insertion in subsection (9), after paragraph (a), of
the following paragraph—

“( aa ) Paragraph (a) shall not apply where the person who issued
the invoice referred to therein was, at the time of its issue, a
person authorised, in accordance with section 14 (1), to determine
his tax liability in respect of supplies of the kind in question
by reference to the amount of moneys received.”,

( f ) by the insertion in subsection (10) (a) after “another
registered person” of “or agricultural produce or agricultural
services are supplied to a registered person by a flat-rate farmer”,

( g ) by the insertion after subsection (11) of the following
subsection:

“(11A) Where a person who is entitled to receive a farmer credit
note under subsection (4) (b) from another person issues to that
other person, before the date on which a farmer credit note is
issued by that other person, a document (in this section referred
to as ‘a farmer debit note’) in such form and containing such
particulars as may be specified by regulations, then, for the
purposes of this Act—

( a ) the person who issues the debit note shall, if the person
to whom it is issued accepts it, be deemed to have received from
the person by whom the debit note was accepted a farmer credit
note containing the particulars set out in such debit note, and

( b ) the person to whom such debit note is issued shall, if he
accepts it, be deemed to have issued to the person from whom the
debit note was received a farmer credit note containing the
particulars set out in such debit note.”,

( h ) by the insertion in subsection (12) (a) (ii) before
“services”, of “goods or “, and

( i ) by the insertion of the following subsection after subsection
(12):

“(13) The provisions of this Act (other than this section) relating
to credit notes and debit notes issued under subsections (3) and
(11), respectively, of this section shall apply in relation to
farmer credit notes and farmer debit notes as they apply in
relation to the credit notes and debit notes aforesaid.”.

VALUE-ADDED TAX (AMENDMENT) ACT 1978 – SECT 16
Amendment of section 19 of Principal Act.

16.—Section 19 of the Principal Act is hereby amended by the
substitution of the following subsection for subsection (3):

“(3) Within 9 days immediately after the tenth day of the month
immediately following a taxable period, a taxable person shall
furnish to the Collector-General a true and correct return prepared
in accordance with regulations of the amount of tax which became
due by him during the taxable period, not being tax already paid
by him in relation to goods imported by him, and the amount, if
any, which may be deducted in accordance with section 12 in
computing the amount of tax payable by him in respect of such
taxable period and such other particulars as may be specified in
regulations, and shall at the same time remit to the
Collector-General the amount of tax, if any, payable by him in
respect of such taxable period.”.

VALUE-ADDED TAX (AMENDMENT) ACT 1978 – SECT 17
Determination of tax due.

17.—The following section shall be substituted for section 23 of the
Principal Act:

“(1) Where, in relation to any period consisting of one taxable

period or of two or more consecutive taxable periods, the Revenue
Commissioners have reason to believe that an amount of tax is due
and payable to them by a person in any of the following
circumstances:

( a ) the total amount of tax payable by the person was greater
than the total amount of tax (if any) paid by him,

( b ) the total amount of tax refunded to the person in
accordance with section 20 (1) was greater than the amount (if any)
properly refundable to him, or

( c ) an amount of tax is payable by the person and a refund
under section 20 (1) has been made to the person,

then, without prejudice to any other action which may be taken,
they may, in accordance with regulations but subject to section 30,
make an estimate in one sum of the total amount of tax which in
their opinion should have been paid or the total amount of tax
(including a nil amount) which in accordance with section 20 (1)
should have been refunded, as the case may be, in respect of the
taxable period or periods comprised in such period and may serve a
notice on the person specifying—

(i) the total amount of tax so estimated,

(ii) the total amount of tax (if any) paid by the person or
refunded to the person in relation to the said period, and

(iii) the total amount so due and payable as aforesaid (referred to
subsequently in this section as ‘the amount due’)

(2) Where notice is served on a person under subsection (1), the
following provisions shall apply:

( a ) the person may, if he claims that the amount due is
excessive, on giving notice to the Revenue Commissioners within the
period of twenty-one days from the date of the service of the
notice, appeal to the Appeal Commissioners, and

( b ) on the expiration of the said period, if no notice of
appeal is received or, if notice of appeal is received, on
determination of the appeal by agreement or otherwise, the amount
due or the amended amount due as determined in relation to the
appeal, shall become due and payable as if the tax were tax which
the person was liable to pay for the taxable period during which
the period of fourteen days from the date of the service of the
notice under subsection (1) expired or the appeal was determined by
agreement or otherwise, whichever taxable period is the later.”.

VALUE-ADDED TAX (AMENDMENT) ACT 1978 – SECT 18
Amendment of section 26 of Principal Act.

18.—Section 26 of the Principal Act is hereby amended—

( a ) by the insertion, in subsection (1) after “11 (7),”, of
“12A,”,

( b ) by the insertion after subsection (2) of the following
subsection:

“(2A) Any person who, otherwise than under and in accordance with
section 12A or 17 (4), issues an invoice in which an amount of
flat-rate addition is stated shall be liable to a penalty of £20.”,
and

( c ) by the insertion, in subsection (3), after “(2)” of “or
(2A)”.

VALUE-ADDED TAX (AMENDMENT) ACT 1978 – SECT 19
Amendment of section 27 of Principal Act.

19.—Section 27 of the Principal Act is hereby amended—

( a ) by the substitution of the following subsection for
subsection (4):

“(4) If a person, in a case in which he represents that he is a
registered person or that goods imported by him were so imported
for the purposes of a business carried on by him, improperly
procures the importation of goods without payment of tax in
circumstances in which tax is chargeable, he shall be liable to a
penalty of £500, and, in addition, he shall be liable to pay to
the Revenue Commissioners the amount of any tax that should have
been paid on the importation.”, and

( b ) by the insertion of the following subsections after
subsection (8):

“(9) Where, in pursuance of regulations made for the purposes of
section 13 (1) (a), tax on the supply of any goods has been
remitted or repaid and—

( a ) the goods are found in the State after the date on which
they were alleged to have been or were to be exported, or

( b ) any condition specified in the regulations or imposed by the
Revenue Commissioners is not complied with,

and the presence of the goods in the State after that date or the
non-compliance with the condition has not been authorised for the
purposes of this subsection by the Revenue Commissioners, the goods
shall be liable to forfeiture and the tax which was remitted or
repaid shall be charged upon and become payable forthwith by the
person to whom the goods were supplied or any person in whose
possession the goods are found in the State and the provisions of
section 24 (1) shall apply accordingly, but the Revenue Commissioners
may, if they think fit, waive payment of the whole or part of
that tax.

(10) The provisions of the Customs Acts relating to forfeiture and
condemnation of goods shall apply to goods liable to forfeiture
under subsection (9) as if they had become liable to forfeiture
under those Acts and all powers which may be exercised by an

officer of Customs and Excise under those Acts may be exercised by
officers of the Revenue Commissioners authorised to exercise those
powers for the purposes of the said subsection.”.

VALUE-ADDED TAX (AMENDMENT) ACT 1978 – SECT 20
Amendment of section 30 of Principal Act.

20.—Section 30 of the Principal Act is hereby amended—

( a ) by the substitution of the following subsection for
subsection (3):

“(3) Proceedings may not be commenced by virtue of subsection (2)
against the personal representative of a deceased person at a time
when, by virtue of paragraph (b) of subsection (5) an estimation of
tax may not be made on the said personal representative in respect
of tax which became due by such person before his death.”,

and

( b ) by the substitution, in subsection (5), of the following
paragraph for paragraph (b):

“( b ) No estimation of tax shall be made by virtue of this
subsection later than three years after the expiration of the year
in which the deceased person died, in a case in which the grant
of probate or letters of administration was made in that year, and
no such estimation shall be made later than two years after the
expiration of the year in which such grant was made in any other
case, but the foregoing provisions of this subsection shall have
effect subject to the proviso that where the personal representative—

(i) after the year in which the deceased person died, lodges a
corrective affidavit for the purposes of assessment of estate duty
or delivers an additional affidavit under section 38 of the Capital
Acquisitions Tax Act, 1976, or

(ii) is liable to deliver an additional affidavit under the said
section 38, has been so notified by the Revenue Commissioners and
did not deliver the said additional affidavit in the year in which
the deceased person died,

such estimation may be made at any time before the expiration of
two years after the end of the year in which the corrective
affidavit was lodged or the additional affidavit was or is
delivered.”.

VALUE-ADDED TAX (AMENDMENT) ACT 1978 – SECT 21
Amendment of section 32 of Principal Act.

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

( a ) by the substitution in subsection (1) of the following
paragraphs for paragraphs (b), (e), (g) and (p):

“( b ) the treatment under section 5 (3) of the use and services
specified therein as services supplied by a person for consideration

in the course of business;

( e ) the manner in which, notwithstanding section 11 (3), any
amount may be apportioned;

( g ) the determination, under section 14, of a person’s tax
liability for any period by reference to moneys received and the
adjustments, including a charge of tax, which may be made when a
person becomes entitled to determine his tax liability in the manner
aforesaid or, having been so entitled, ceases to be so entitled, or
ceases to be a taxable person;

( p ) matters consequential on the death of a registered person or
his becoming subject to any incapacity including the treatment of a
person of such class or classes as may be specified in the
regulations as a person carrying on the business of the deceased or
incapacitated person;”,

( b ) by the deletion of paragraph (w) of the said subsection
(1), and

( c ) by the insertion after subsection (2) of the following
subsection:

“(2A) Regulations under this section for the purposes of section 5
(7), subsection (1) or (2) of section 13 or subsection (6) or (
7)
of section 15 shall not be made without the consent of the
Minister for Finance.”.

VALUE-ADDED TAX (AMENDMENT) ACT 1978 – SECT 22
Amendment of section 35 of Principal Act.

22.—Section 35 of the Principal Act is hereby amended by the
addition to the section of the following subsection:

“(3) ( a ) Where, under an agreement made before the commencement
of section 12A, a flat-rate farmer supplies agricultural produce or
an agricultural service after such commencement to any person, the
consideration provided for under the agreement shall, in the absence
of agreement to the contrary, be increased by an amount equal to
the flat-rate addition appropriate to the said consideration.

( b ) Where, in relation to a supply of agricultural produce or
an agricultural service by a flat-rate farmer, the flat-rate farmer
issues an invoice in which the flat-rate addition is stated
separately, the flat-rate addition so stated shall, for the purpose
of its recovery, be deemed to be part of the consideration for the
transaction and shall be recoverable accordingly by the flat-rate
farmer.”.

VALUE-ADDED TAX (AMENDMENT) ACT 1978 – SECT 23
Amendment of section 29 of Finance Act, 1975.

23.—Section 29 of the Finance Act, 1975. is hereby amended by the
substitution for paragraph (ii) of subsection (1) of the following
paragraph:

“(ii) a refund of value-added tax under regulations under that Act
or under an order under section 20 (3) of that Act.”.

VALUE-ADDED TAX (AMENDMENT) ACT 1978 – SECT 24
Exempted activities.

24.—The Principal Act is hereby amended by the substitution of the
following Schedule for the First Schedule thereto:

Section 1 of Principal Act.

“FIRST SCHEDULE

Exempted Activities

(i) supply of stocks, shares or other securities;

(ii) school or university education, and vocational training or
retraining (including the supply of goods and services incidental
thereto), provided by educational establishments recognised by the
State, and education, training or retraining of a similar kind
provided by other persons;

(iii) professional services of a medical, dental or optical nature
other than services rendered in the course of carrying on a
business which consists in whole or in part of selling goods;

(iv) letting of immovable goods with the exception of—

( a ) letting of machinery or business installations when let
separately from any other immovable goods of which such machinery or
installations form part;

( b ) letting in the course of carrying on a hotel business;

( c ) provision of parking accommodation for vehicles by the
operators of car parks; and

( d ) hire of safes;

(v) hospital and medical care or treatment provided by a hospital,
nursing home, clinic or similar establishment;

(vi) services for the protection or care of children and young
persons, and the provision of goods closely related thereto, provided
otherwise than for profit;

(vii) supply of goods and services closely related to welfare and
social security by non-profit making organisations;

(viii) services supplied in the course of their profession by
barristers;

(ix) urgency services in regard to—

( a ) the arrangement of passenger transport or accommodation for
persons, and

( b ) the collection of debts, rents or insurance premiums,

( c ) banking and insurance services,

( d ) supply of stocks, shares and other securities,

( e ) the lending of money or affording of credit otherwise than
by way of hire-purchase or credit-sale transactions;

(x) services rendered in the course of their profession by
solicitors, accountants, actuaries and veterinary surgeons;

(xi) banking and insurance services.

(xii) lending money or affording credit otherwise than by means of
hire-purchase or credit-sale transactions;

(xiii) the national broadcasting and television services, excluding
advertising;

(xiv) transport of passengers and their accompanying baggage;

(xv) betting;

(xvi) issue of tickets or coupons for the purpose of a lottery;

(xvii) promotion of and admissions to sporting events;

(xviii) collection, storage and supply of human organs, human blood
and human milk;

(xix) funeral undertaking;

(xx) supply of live horses;

(xxi) supply of live greyhounds;

(xxii) supply of services and of goods closely related thereto for
the benefit of their members by non-profit making organisations whose
aims are primarily of a political, trade union, religious, patriotic,
philosophical, philanthropic or civic nature where such supply is
made without payment other than the payment of any membership
subscription;

(xxiii) provision of facilities for taking part in sporting and
physical education activities, and services closely related thereto,
provided for its members by non-profit making organisations;

(xxiv) supply of goods by a person being goods—

( a ) which were used by him for the purposes of a business
carried on by him,

( b ) in relation to the acquisition or application of which he
had borne tax, and

( c ) which are of such a kind or were used in such
circumstances that no part of the said tax was deductible under
section 12;

(xxv) catering services supplied—

( a ) to patients of a hospital or nursing home in the hospital
or nursing home, and

( b ) to students of a school in the school.”.

VALUE-ADDED TAX (AMENDMENT) ACT 1978 – SECT 25
Amendment of Second Schedule to Principal Act.

25.—The Second Schedule to the Principal Act is hereby amended—

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

“(i) Goods supplied—

( a ) subject to a condition that they are to be transported
directly by or on behalf of the person making the supply—

(I) outside the State, or

(II) to a registered person within the customs-free airport,

or

( b ) by a registered person within the customs-free airport to
another registered person;”,

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

“(v) the supply, modification, repair, maintenance and hiring of—

( a ) sea-going vessels of a gross tonnage of more than 15 tons
being vessels used or to be used—

(I) for the carriage of passengers for reward,

(II) for the purposes of a sea fishing business.

(III) for other commercial or industrial purposes.

or

(IV) for rescue or assistance at sea, or

( b ) aircraft used or to be used by a transport undertaking
operating for reward chiefly on international routes;”,

( c ) by the substitution of the following paragraph for paragraph
(vi):

“(vi) services, supplied by an agent acting in the name and on
behalf of another person, in procuring—

( a ) the export of goods from the State,

( b ) services specified in paragraphs (iii), (iv), (v) or (x)
. or

( c ) the supply of goods or services outside the State;”,

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

“(x) gold supplied to the Central Bank of Ireland;”,

and

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

“(xvi) the supply, to a person who has neither an establishment nor
his usual place of residence in the State, of work on movable
goods acquired within the State, or imported for the purpose of
having such mark carried out, and afterwards exported;”,

VALUE-ADDED TAX (AMENDMENT) ACT 1978 – SECT 26
Amendment of Third Schedule to Principal Act.

26.—The Third Schedule to the Principal Act is hereby amended—

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

“(xix) mechanically propelled road vehicles;”,

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

“(xxi) ships, boats and other vessels excluding—

( a ) ships, boats and other vessels designed and constructed for
the conveyance of passengers and not exceeding 15 tons gross,

( b ) sports and pleasure craft of all descriptions including
yachts, cabin cruisers, dinghies, canoes, skiffs and racing boats.
and

( c ) vessels of a kind specified in paragraph (v) (a) of the
Second Schedule;”,

( c ) by the substitution for paragraph (xxvii) of the following
paragraph:

“(xxvii) bodies and chassis designed for mechanically propelled road
vehicles;”,

( d ) by the substitution for paragraph (xxviii) of the following
paragraph:

“(xxviii) second-hand movable goods other than goods of a kind
specified in the Second Schedule;”,

and

( e ) by the substitution of the following paragraphs for paragraph
(xxix):

“(xxix) radio receiving sets and television receiving sets that are
of the domestic or portable type or that are of a type suitable
for use in road vehicles;

(xxx) gramophones, radiogramophones and record players;

(xxxi) gramophone records.”.

VALUE-ADDED TAX (AMENDMENT) ACT 1978 – SECT 27
Services that are taxed where received.

27.—The following Schedule shall be substituted for the Fourth
Schedule to the Principal Act:

Section 5 of Principal Act.

“FOURTH SCHEDULE

Services that are taxed where received

(i) Transfers and assignments of copyright, patents, licences, trade
marks and similar rights;

(ii) advertising services:

(iii) services of consultants, engineers, consultancy bureaux, lawyers
,
accountants and other similar services, data processing and provision
of information (but excluding services connected with immovable
goods);

(iv) acceptance of any obligation to refrain from pursuing or
exercising in whole or in part, any business activity or any such
rights as are referred to in paragraph (i);

(v) banking, financial and insurance services (including re-insurance
,
but not including the provision of safe deposit facilities);

(vi) the provision of staff;

(vii) the services of agents who act in the name and for the
account of a principal when procuring for him any services specified
in paragraphs (i) to (vi).”.

VALUE-ADDED TAX (AMENDMENT) ACT 1978 – SECT 28
“Annex A activities” and “Annex B services”.

28.—The following Schedule shall be substituted for the Fifth
Schedule to the Principal Act:

Section 8 of Principal Act.

“FIFTH SCHEDULE

PART I

Annex A of Council Directive No. 77/388/EEC of 17 May, 1977

LIST OF AGRICULTURAL PRODUCTION ACTIVITIES

I. CROP PRODUCTION

1. General agriculture, including viticulture

2. Growing of fruit (including olives) and of vegetables, flowers
and ornamental plants, both in the open and under glass

3. Production of mushrooms, spices, seeds and propagating materials;
nurseries

II. STOCK FARMING TOGETHER WITH CULTIVATION

1. General stock farming

2. Poultry farming

3. Rabbit farming

4. Beekeeping

5. Silkworm farming

6. Snail farming

III. FORESTRY

IV. FISHERIES

1. Fresh-water fishing

2. Fish farming

3. Breeding of mussels, oysters and other molluscs and crustaceans

4. Frog farming

V. Where a farmer processes, using means normally employed in an
agricultural, forestry or fisheries undertaking, products deriving
essentially from his agricultural production, such processing shall
also be regarded as agricultural production.

PART II

Annex B of Council Directive No. 77/388/EEC of 17 May, 1977

LIST OF AGRICULTURAL SERVICES

Supplies of agricultural services which normally play a part in
agricultural production shall be considered the supply of agricultural
services and include the following in particular:

— field work, reaping and mowing, threshing, baling, collecting,
harvesting, sowing and planting

— packing and preparation for market, for example drying, cleaning,
grinding, disinfecting and ensilage of agricultural products

— storage of agricultural products

— stock minding, rearing and fattening

— hiring out, for agricultural purposes, of equipment normally used
in agricultural, forestry or fisheries undertakings

— technical assistance

— destruction of weeds and pests, dusting and spraying of crops and
land

— operation of irrigation and drainage equipment

— lopping, tree felling and other forestry services.”.

VALUE-ADDED TAX (AMENDMENT) ACT 1978 – SECT 29
Amendment of Imposition of Duties Act, 1957.

29.—Section 1 (a) of the Imposition of Duties Act. 1957. is hereby
amended—

( a ) by the insertion after “a customs duty” of “or an excise
duty”, and

( b ) by the substitution of “other duty” for “other customs
duty”,

and the references in paragraph (e) of that section to any excise
duty and in paragraphs (h) and (i) of that section to any duty
shall be construed as including references to any excise duty
imposed under the said paragraph (a) and an excise duty imposed
under the said paragraph (a) shall be deemed, for the purposes of
the said paragraph (h), to be a customs duty and an excise duty,
and the said paragraph (a), as so amended, is set out in the
Table to this section.

TABLE

( a ) impose, whether with or without qualifications, limitations,
drawbacks, allowances, exemptions, or preferential rates, and as from
any specified day, a customs duty or an excise duty of such amount
as they think proper on any particular description of goods imported
into the State and, where the goods are chargeable with any other
duty, so impose the first-mentioned duty either in addition to or
in substitution for the other duty;

VALUE-ADDED TAX (AMENDMENT) ACT 1978 – SECT 30
Repeals and consequential amendments.

30.—(1) The enactment mentioned in column (2) of the First Schedu
le
is hereby repealed to the extent specified in column (3) of that
Schedule.

(2) In consequence of the amendments of the Principal Act specified
in this Act and of the repeals specified in the First Schedule,
the Principal Act is hereby further amended by the substitution of
the word or expression mentioned in column (3) of the Second
Schedule at any reference number for the word or expression
mentioned in column (2) of that Schedule at that reference number
wherever it occurs in the provision of the Principal Act mentioned
in column (4) of that Schedule at that reference number.

VALUE-ADDED TAX (AMENDMENT) ACT 1978 – SECT 31
Transitional provisions.

31.—(1) ( a ) The register that, immediately before the commencem
ent
of this Act, was the register of persons who may become or who
are accountable persons shall, as on and from such commencement,
become and be the register of persons who may become or who are
taxable persons under section 9 of the Principal Act as amended by
this Act and the persons who, immediately before such commencement,
were registered in the former register shall, upon such commencement,
stand registered in the latter register.

( b ) A person who, immediately before the commencement of this
Act, was authorised to treat—

(i) the moneys which he received in respect of the delivery of
taxable goods or rendering of taxable services as the consideration
in respect of such delivery of goods or rendering of services,

and

(ii) the moneys he received in respect of the rendering of taxable
services as the consideration for the rendering of such services,

shall he deemed (if he could be so authorised) to have been
authorised to determine his tax liability in respect of supplies of
goods and services or supplies of services, as the case may be,
under section 14 of the Principal Act as amended by this Act.

( c ) A person who, immediately before the commencement of this
Act, was an accountable person and who, upon such commencement,
would not, unless he so elected under section 8 (3) of the
Principal Act, be a taxable person, shall, upon such commencement,
be deemed to have so elected and shall be a taxable person until
the time when the election is cancelled or he permanently ceases to
supply taxable goods and services, whichever is the later.

(2) In relation to a person who, immediately before the commencement
of this Act, was an accountable person—

( a ) references in subsection (3) of section 7 of the Principal
Act to a waiver shall be deemed to include references to a waiver
made under subsection (1) of the said section 7 before such
commencement,

( b ) references in subsection (5) of section 8 of the Principal
Act to an election shall be deemed to include references to an
election made under subsection (3) of the said section 8,

( c ) references in the said subsection (3) of the said section 7
to the supply of services shall be deemed to include references to
the rendering of services before such commencement, and

( d ) references in the said subsection (5) and subsection (6) (b
)
of the said section 8 to the supply of goods or services shall be
deemed to include references to the delivery of goods, or the
rendering of services, before such commencement.

VALUE-ADDED TAX (AMENDMENT) ACT 1978 – SECT 32
Short title, construction, collective citation and commencement.

32.—(1) This Act may be cited as the Value-Added Tax (Amendment)
Act, 1978.

(2) The Value-Added Tax Act, 1972, and (in so far as they relate
to value-added tax) the Finance Act, 1973, the Finance Act, 1975,
the Finance (No. 2) Act, 1975, the Finance Act, 1976, the Finance
Act, 1978, and this Act shall be construed together as one Act and
may be cited together as the Value-Added Tax Acts, 1972 to 1978.

(3) This Act, other than section 29, shall come into operation on
such day as the Minister may by order appoint.

FIRST SCHEDULE

Enactments Repealed

Number and YearShort TitleExtent of Repeal(1)(2)(3)No. 22 of
1972Value-Added Tax Act, 1972.Section 2 (2). In paragraph (b) of
section 3 (5), the words from “unless the goods” to the end of on
paragraph. In section 4 (2), the words “section 2(2),”. In section
4 (2), the words “section 2(2),”. In section 11 (8) (a), the wor
ds
“and may, in like manner, vary the Fourth Schedule by deleting
therefrom descriptions of goods of any kind or by varying any
description of goods for the time being specified therein,”.Section
11 (9).The proviso to section 19 (1).Section 36.Paragraph (ii) of
the Second schedule.Paragraph (iv) of Part II of the Third Schedule.

SECOND SCHEDULE

Consequential Amendments

Reference NumberExisting word or expressionSubstituted word or
expressionProvision of Principal Act(1)(2)(3)(4)1.”delivery””sup
ply”The
definition of “exempted activity”, and the definition of “taxable
goods” in section 1 (1); sections 3 (2), 3 (4), 3 (5) (a), 3 (
5)
(b), 3 (6) (a), 3 (6) (b), 4 (1) (a) (ii), 4 (2), 4 (
3) (a), 4

(3) (b) (ii), 4 (5) (b), 4 (6), 4 (7), 11 (1B) (a) (i
i), 11
(1B) (b) (ii), 11 (4), 11 (5), 11 (7) (e) (i), 17 (12)
(a) (i),
17 (12) (a) (iii) and 34 (5).2.”rendering””supply”The definition
of
“taxable services” in section 1 (1); sections 7 (1) (where the word

first occurs), 7 (3), 7 (4), 11 (1B) (a) (ii), 11 (1B) (b)
(ii),
11 (7) (e) (ii), 17 (12) (a) (i) and 34 (5)
(c).3.”delivered””supplied”Sections 3 (6), 11 (4), 11 (5), 11 (
7) (b)
(i), 34 (1), 34 (5) and paragraph (viii) of Second
Schedule.4.”rendered””supplied”Sections 11 (7) (b) (ii), 17 (12)
(a)
(ii) and 34 (5).5.”delivering””supplying”Sections 4 (1) (a) (i)
and 4
(1) (a) (ii).6.”rendering””supplying”Section 7 (1) (where the w
ord
secondly occurs).7.”delivers””supplies”Section 11
(4).8.”renders””supplies”Section 7 (1).9.”delivery of such goods or
the
rendering of such services””supply of goods and servicesSections 8
(5) and 8 (6) (b)10.”delivery of goods or rendering of the
service””supply of goods or services”Section 17 (1).11.”delivery of
the goods or the rendering of the service””supply of the goods or
services”Section 19 (2).12.”delivery of any goods or a rendering of
any service””supply of any goods or service”The definition of
“exempted activity” in section 1 (1).13.”delivery of goods by the
person or the rendering of services””supply of goods or
servicesSection 16 (3).14.”delivery to such person of goods of a
kind specified in the order or the rendering to him of
services””supply to such person of goods or services”Section 20
(3).15.”delivery of goods of any kind or the rendering of a
service””supply of goods or services”Section 6 (2) (a).16.”delivery
or
rendering””supply”Sections 17 (8), 19 (2), 20 (3) (a), 35 (1A)
(a)
and 35 (1A) (b).17.”delivery of goods or the rendering of
services””supply of goods or services”Sections 8 (5), 8 (6) (b), 1
6
(2), 17 (8), 35 (1A) (a) 35 (1 A) (b).18.”delivery of goods
or
the rendering of services””the said business”Section 18
(1).19.”delivery of goods or a rendering of services””supply of goods
or services”Section 35 (2).20.”delivering goods or rendering
services””supplying goods or services”Section 17 (7).21.”delivers good
s
or renders services””supplies goods or services”Sections 11 (1B) (g)
,
17 (1), 32 (1) (s) and 35 (1) (b) (i).22.”delivers goods in
the
course of business or renders services in the course of
business””supplies goods or services in the course or furtherance of
any business”Section 16 (2).23.”goods are delivered or services are
rendered””goods or services are supplied”Sections 17 (10) (a) and 32

(1) (s).24.”goods are delivered or services are rendered””goods or
services are supplied”Sections 17 (10) (b) and 19 (1)
(c).25.”accountable person” except where preceded by the word
“an””taxable person”Sections 3 (5) (b) (iii), 11 (IB) (g), 11
(5),
12 (2), 16 (1), 17 (1), 17 (3) (a), 17 (3) (b), 17 (12)
(a)
(i), 17(12) (a) (ii), 17 (12) (a) (iii), 21 (1), 34 (1)
(a) and
34 (1) (b).26.”an accountable person””a taxable person”Sections 4 (
5),
8 (4), 8 (6), 9 (2), 11 (1B) (a), 11 (1B) (c), 12 (1A) (
a), 16
(2), 17 (1), 17 (3), 17 (5), 17 (6), 17 (12) (a), 22 (1)
, 22
(2) (a), 26 (6) (d), 32 (1) (d), 32 (1) (s) 32 (1) (u
u), 32 (1)
(x), 32 (1) (xx), 34 (1), 34 (2), 35 (1) (b) (i) and 35
(2).27.”accountable persons””taxable persons”Section 32 (1) (h).28
.”not
accountable””not a taxable person”Section 32 (1)
(d).29.”supplied””provided”section 3 (1) (c), 11 (4)30.”subsecti
on (1)
(d)””subsection (1) (b)”Section 11 (7) (e) (i), 11 (7) (e
)
(ii).31.”section 5 (4)””section 13″Section 17 (12) (a) (ii)32.
“section
5 (4)””any other provision of this Act or regulations”Section 20

(4).33.”second-hand goods or any goods of a kind specified in the
Fourth Schedule””or second-hand goods”Section 34 (4).34.”would, if the

proviso to the said subsection (1) were disregarded, fall due””falls
due”Section 35 (1A) (a).35.”section 11 (1) (e)””section 11
(1)(c)”Paragraph (vii) of Part II of Third Schedule.36.”subsection
(3)
(a) (iv)””subsection (3) (b) (iii) or (9)”Section 8 (4).37
.”subsection
(3) (a)””subsection (3) (a) or (b)”.Subsection 8 (6) (a)
(i).38.”subsection (3) (b), (3) (c) or (3) (d)””subsection
(3) (c),
(3) (d) or (3) (e)”Subsection 8 (6) (a) (ii).