Value-Added Tax (Amendment) Act, 1978

Value-Added Tax (Amendment) Act, 1978 Skip to content Disclaimer Feedback Helpdesk Gaeilge Léim go dtí an t-ábhar Séanadh Aiseolas Deasc chabhrach English Gaeilge English Produced by the Office of the Attorney General Táirgthe ag Oifig an Ard-Aighne Home Legislation Acts of the Oireachtas Statutory Instruments Pre-1922 Legislation Constitution External Resources Bills (Houses of the Oireachtas) Iris Oifigiúil / Official Gazette Revised Acts (LRC) Classified List of Legislation (LRC) Translations (acts.ie) Translations (Houses of the Oireachtas) Government Publications for Sale EU Law (EUR-Lex) FAQ Disclaimer Feedback Helpdesk Search Baile Reachtaíocht Achtanna an Oireachtais Ionstraimí Reachtúla Reachtaíocht Réamh-1922 Bunreacht Acmhainní Seachtracha Billí (Tithe an Oireachtais) Iris Oifigiúil Achtanna Athbhreithnithe (CAD) (An Coimisiún um Athchóiriú an Dlí) Liosta Rangaithe Reachtaíochta Aistriúcháin (achtanna.ie) Aistriúcháin (Tithe an Oireachtais) Foilseacháin Rialtais ar Díol Dlí AE (EUR-Lex) CCanna (Ceisteanna Coitianta) Séanadh Aiseolas Deasc chabhrach Cuardach TitleTeideal Year(s) or rangeBliain nó blianta nó raon TypeCineál All Legislation Acts Statutory Instruments Advanced SearchCuardach Casta HomeBaile ActsAchtanna 1978 Value-Added Tax (Amendment) Act, 1978 Value-Added Tax (Amendment) Act, 1978 Permanent Page URL View by SectionAmharc de réir Ailt View Full ActAmharc ar an Acht Iomlán Bill History Stair Bille Commencement, Amendments, SIs made under the Act Tosach Feidhme, Leasuithe, IRí arna ndéanamh faoin Acht Print Full ActPriontáil an tAcht Iomlán Number 34 of 1978 VALUE-ADDED TAX (AMENDMENT) ACT, 1978 ARRANGEMENT OF SECTIONS Section

Section 1

Principal Act.

Section 2

Amendment of section 1 of Principal Act.

Section 3

Amendment of section 2 of Principal Act.

Section 4

Amendment of section 3 of Principal Act.

Section 5

Supply of services.

Section 6

Amendment of section 8 of Principal Act.

Section 7

Amendment of section 9 of Principal Act.

Section 8

Amount on which tax is chargeable.

Section 9

Amendment of section 11 of Principal Act.

Section 10

Amendment of section 12 of Principal Act.

Section 11

Special provisions for tax invoiced by flat-rate farmers.

Section 12

Remission of tax on goods exported, etc..

Section 13

Determination of tax due by reference to cash receipts.

Section 14

Charge of tax on imported goods.

Section 15

Amendment of section 17 of Principal Act.

Section 16

Amendment of section 19 of Principal Act.

Section 17

Determination of tax due.

Section 18

Amendment of section 26 of Principal Act.

Section 19

Amendment of section 27 of Principal Act.

Section 20

Amendment of section 30 of Principal Act.

Section 21

Amendment of section 32 of Principal Act.

Section 22

Amendment of section 35 of Principal Act.

Section 23

Amendment of section 29 of Finance Act, 1975.

Section 24

Exempted activities.

Section 25

Amendment of Second Schedule to Principal Act.

Section 26

Amendment of Third Schedule to Principal Act.

Section 27

Services that are taxed where received.

Section 28

“Annex A activities” and “Annex B services”.

Section 29

Amendment of Imposition of Duties Act, 1957.

Section 30

Repeals and consequential amendments.

Section 31

Transitional provisions.

Section 32

Short title, construction, collective citation and commencement.

FIRST SCHEDULE Enactments Repealed SECOND SCHEDULE Consequential Amendments Number 34 of 1978 VALUE-ADDED TAX (AMENDMENT) ACT, 1978 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:

Principal Act.

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

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;.”

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”.

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.”.

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).

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.

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.”.

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.

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.

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.

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).”.

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.

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.

Remission of tax on goods exported, etc.

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.

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.”.

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.

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.

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.”.

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.”.

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’).

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) (a), 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)”.

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.

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.”.

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.”.

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.”.

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.”.

Exempted activities.

24.—The Principal Act is hereby amended by the substitution of the following Schedule for the First Schedule thereto: “FIRST SCHEDULE Exempted Activities

Section 1 of Principal Act.

(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) agency 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.”.

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 work carried out, and afterwards exported;”.

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.”.

Services that are taxed where received.

27.—The following Schedule shall be substituted for the Fourth Schedule to the Principal Act: “FOURTH SCHEDULE Services that are taxed where received

Section 5 of Principal Act.

(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).”. “Annex A activities” and “Annex B services”.

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

Section 8 of Principal Act.

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.”.

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;

Repeals and consequential amendments.

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

Transitional provisions.

31.—(1) (a) The register that, immediately before the commencement 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 be 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.

Short title, construction, collective citation and commencement.

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

FIRST SCHEDULE Enactments Repealed

Section 30.

Number and Year Short Title Extent of Repeal

(1)

(2)

Section 2 (2).

In paragraph (b) of section 3 (5), the words from “unless the goodss” to the end of the paragraph.

In section 4 (2), the words “section 2 (2),”.

In section 11 (8) (a), the words “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

Section 30.

Reference Number Existing word or expression Substituted word or expression Provision of Principal Act

(1)

(2)

(3)

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) (ii), 11 (1B) (b) (ii), 11 (4), 11 (5), 11 (7) (e) (i), 17 (12) (a) (i), 17 (12) (a) (iii) and 34 (5).

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).

Sections 3 (6), 11 (4), 11 (5), 11 (7) (b) (i), 34 (1), 34 (5) and paragraph (viii) of Second Schedule.

Sections 11 (7) (b) (ii), 17 (12) (a) (ii) and 34 (5).

Sections 4 (1) (a) (i) and 4 (1) (a) (ii).

Section 7 (1) (where the word secondly occurs).

Section 11 (4).

Section 7 (1).

Sections 8 (5) and 8 (6) (b) 10. “delivery of goods or rendering of services” “supply of goods or services”

Section 17 (1).

Section 19 (2).

The definition of “exempted activity” in section 1 (1).

Section 16 (3).

Section 20 (3).

Section 6 (2) (a).

Sections 17 (8), 19 (2), 20 (3) (a), 35 (1A) (a) and 35 (1A) (b).

Sections 8,(5), 8 (6) (b), 16 (2), 17 (8), 35 (1A) (a) and 35 (1A) (b).

Section 18 (1).

Section 35 (2).

Section 17 (7).

Sections 11 (1B) (g), 17 (1), 32 (1) (s) and 35 (1) (b) (i).

Section 16 (2).

Sections 17 (10) (a) and 32 (1) (s).

Sections 17 (10) (b) and 19 (1) (c).

Sections 3 (5) (b) (iii), 11 (1B) (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).

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) (uu), 32 (1) (x), 32 (1) (xx), 34 (1), 34 (2), 35 (1) (b) (i) and 35 (2).

Section 32 (1) (h).

Section 32 (1) (d).

Section 11 (7) (e) (i), 11 (7) (e) (ii).

Section 17 (12) (a) (ii).

Section 20 (4).

Section 33

“second-hand goods or any goods of a kind specified in the Fourth Schedule” “or second-hand goods”

Section 34 (4).

Section 34

“would, if the proviso to the said subsection (1) were disregarded, fall due” “falls due”

Section 35 (1A) (a).

Section 35

“section 11 (1) (e)” “section 11 (1) (c)”

Paragraph (vii) of Part II of Third Schedule.

Section 36

“subsection (3) (a) (iv)” “subsection (3) (b) (iii) or (9)”

Section 8 (4).

Section 37

“subsection (3) (a)” “subsection (3) (a) or (b)”

Section 8 (6) (a) (i).

Section 38

“subsection (3) (b), (3) (c) or (3) (d)” “subsection (3) (c), (3) (d) or (3) (e)”

Section 8 (6) (a) (ii).

Acts Referred to Customs Consolidation Act, 1876 1876, c. 30 Finance Act, 1973 1973, No. 19 Finance Act, 1975 1975, No. 6 Finance (No. 2) Act, 1975 1975, No. 19 Finance Act, 1976 1976, No. 16 Finance Act, 1978 1978, No. 21 Imposition of Duties Act, 1957 1957, No. 7 Value-Added Tax Act, 1972 1972, No. 22 Privacy Statement Accessibility European Legislation Identifier (PDF) Open Data License Ráiteas Príobháideachais Inrochtaineacht Aitheantóir Eorpach Reachtaíochta (ELI) Ceadúnas Sonraí Oscailte Liosta Fianán © Government of Ireland. Oireachtas Copyright Material is reproduced with the permission of the Houses of the Oireachtas © Rialtas na hÉireann. Atáirgtear ábhar faoi Chóipcheart le cead ó Thithe an Oireachtais