S.I. No. 254/1973 - Value-Added Tax Regulations, 1973

S.I. No. 254 of 1973.

VALUE-ADDED TAX REGULATIONS, 1973.

ARRANGEMENT OF REGULATIONS.

Regulation

1. Citation and commencement.

2. Amendment of Value-Added Tax Regulations, 1972.

3. Relief for stock-in-trade held at commencement of accountability.

4. Determinations in regard to tax.

5. Rendering of certain services.

S.I. No. 254 of 1973.

VALUE-ADDED TAX REGULATIONS, 1973.

The Revenue Commissioners, in exercise of the powers conferred on them by section 32 of the Value-Added Tax Act, 1972 , (No. 22 of 1972), hereby make the following regulations:

1 Citation and commencement.

1.

1. (1) These Regulations may be cited as the Value-Added Tax Regulations, 1973.

• (2) The Value-Added Tax Regulations, 1972 ( S.I. No. 177 of 1972 ), and these Regulations may be cited together as the Value-Added Tax Regulations, 1972 and 1973.

• (3) These Regulations shall come into operation on the 3rd day of September, 1973.

2 Amendment of Value-Added Tax Regulations, 1972.

2.

2. The Value-Added Tax Regulations, 1972, are hereby amended—

( a ) by the substitution for paragraph (2) of Regulation 3 of the following paragraph:

• "(2) The furnishing of the particulars referred to in paragraph (1) shall constitute an election to be an accountable person and such election shall have effect as from the end of the taxable period during which such particulars are received by the Collector-General, or as from such earlier date as may be agreed between the person and the Collector-General, until the date on which the person permanently ceases to deliver taxable goods or render taxable services in the course of business or until the date on which his election is cancelled in accordance with paragraph (3), whichever date is the earlier.",

( b ) by the substitution for subparagraph (a) of Regulation 3 (5) of the following subparagraph:

"( a ) in a case in which there is an excess of the amount referred to in paragraph (3) (b) (i) over the amount referred to in paragraph (3) (b) (ii), an amount for the final taxable period and for any subsequent taxable period consisting of the amount of such excess, increased by the amount paid under section 19 (3) of the Act for the final taxable period and any subsequent taxable periods up to and including the taxable period to which the claim relates and reduced by the total of the refunds under section 20 (1) of the Act previously made for any of those taxable periods, and",

( c ) by the insertion in Regulation 7 (1) after subparagraph (c) of the following subparagraph:

"( d ) the amount due to him on the last day of the taxable period prior to the giving of the notice in respect of goods delivered and services rendered by him.",

( d ) by the substitution for subparagraph (a) of Regulation 7 (4) of the following subparagraph:

"( a ) the excess, if any, of the total amount due to him at the end of the first-mentioned period for goods delivered and services rendered by him over the total amount due to him at the commencement of that period for goods delivered and services rendered by him shall be apportioned between amounts on which tax is not chargeable and amounts on which tax is chargeable at each of the various rates of tax (including the zero rate) specified in section 11 (1) of the Act in the same proportions as the amounts of consideration which were not chargeable to tax and were chargeable to tax at each of those rates of tax bear to each other in the period consisting of six consecutive taxable periods (or the total number of taxable periods for which he was authorised as aforesaid, if less than six) next before the taxable period in which the cesser occurs,",

( e ) by the substitution for paragraph (5) of Regulation 7 of the following paragraph:

• "(5) Where a person who for any period is authorised in accordance with paragraph (3) to treat the moneys which he has received for the rendering of taxable services as the consideration for such rendering ceases to be so authorised or ceases to be an accountable person, the tax payable by him for the taxable period during which any such lesser occurs shall be adjusted as follows:—

( a ) the excess, if any, of the total amount due to him at the end of the first-mentioned period for services rendered by him over the total amount due to him at the commencement of that period for services rendered by him shall be apportioned between amounts on which tax is not chargeable and amounts on which tax is chargeable at each of the various rates (including the zero rate) specified in section 11 (1) of the Act in the same proportions as the amounts of consideration for the rendering of services which were not chargeable to tax and were chargeable to tax at each of those rates of tax bear to each other in the period consisting of six consecutive taxable periods (or the total number of taxable periods for which he was authorised as aforesaid, if less than six) next before the taxable period in which the cesser occurs,

( b ) the portions of the excess referred to in subparagraph (a), which are referable to the rendering of services chargeable at the various rates, as ascertained by apportionment in accordance with that subparagraph, shall be treated as consideration in respect of which tax at the said rates became due under section 2 (1) (a) of the Act by him during the taxable period during which the cesser occurs.",

( f ) by the substitution for subparagraph (b) of Regulation 8 (1) of the following subparagraph:

"( b ) the sum of the deficiencies, ascertained in accordance with subparagraph (a), incurred in each taxable period and relating to consideration chargeable at each of the various rates of tax (including the zero rate) specified in section 11 (1) of the Act, shall be deducted from the amounts ascertained in accordance with section 10 of the Act which would otherwise be chargeable with tax at each of those rates and the net amounts as so ascertained shall be the amounts on which tax is chargeable for the taxable period:

Provided that if the sum of the deficiencies as ascertained in accordance with subparagraph (b) in relation to tax chargeable at any of the rates so specified exceeds the amount on which but for this Regulation tax would be chargeable at that rate, or no tax is chargeable at that rate, the tax appropriate to the excess or to the sum of the deficiencies, if no tax is chargeable, shall be treated as tax deductible in accordance with section 12 of the Act,",

( g ) by the insertion in Regulation 9 (1) after sub-paragraph (d) of the following subparagraph:

"( dd ) in relation to services regarded in accordance with section 5 (2) of the Act as rendered by a person in the course of business, a description of the services in question together with particulars of the cost, excluding tax, to the accountable person of rendering the services and of the consideration, if any, receivable by him in respect of the rendering,",

( h ) by the substitution for clause (vi) of Regulation 10 (e) of the following clause:

• "(vi) the relevant rate or rates of tax, current on the date upon which the credit note is issued, and the amount of tax at each rate appropriate to the consideration for which credit is being given.", and

• (i) by the substitution for clause (vi) of Regulation 10 (h) of the following clause:

• "(vi) the relevant rate or rates of tax and the amount of tax at each rate appropriate to the consideration shown on the debit note.".

3 Relief for stock-in-trade held at commencement of accountability.

3.

3. (1) A claim by an accountable person for a deduction under section 12 (1) of the Act of an amount authorised to be so deducted by section 12 (1A) of the Act shall be made to the Collector-General and shall he supported by a statement in writing of all stock-in-trade held by him at the commencement of the first taxable period for which he is deemed to be an accountable person (in this Regulation referred to as the relevant day) setting out details of stock-in-trade so held by him under the following headings:

( a ) stocks delivered to him by accountable persons and in respect of which, if delivered immediately before the relevant day, tax would be chargeable on the full amount of the consideration at the rate specified in section 11 (1) (a) of the Act;

( b ) stocks delivered to him by accountable persons and in respect of which, if delivered immediately before the relevant day, tax would be chargeable on the full amount of the consideration at the rate specified in section 11 (1) (e) of the Act;

( c ) stocks delivered to him by accountable persons and in respect of which, if delivered immediately before the relevant day, tax would be chargeable on the percentage of the total consideration specified in section 10 (7) of the Act at the rate specified in section 11 (1) (a) of the Act;

( d ) farm produce, other than live horses or greyhounds, delivered by unregistered farmers, and fish delivered by unregistered fishermen; and

( e ) stocks, other than stocks referred to in subparagraph (d), in respect of which, if delivered immediately before the relevant day, tax would not be chargeable or would be chargeable at the zero rate.

• (2) ( a ) The deduction in respect of stocks specified in subparagraph (a) or (b) of paragraph (1) shall be ascertained in the following manner:

• (i) the stocks shall be valued at cost inclusive of tax, or market value, whichever is the lower,

• (ii) there shall be deducted from the total value of stocks ascertained in accordance with clause (i) the value of any stocks included therein in respect of which an invoice issued in accordance with subsections (1) or (3) of section 17 of the Act has been or is likely to be received on or after the relevant day,

• (iii) the amount of the deduction shall be the amount of tax which would be chargeable if the stocks were delivered immediately before the relevant day by an accountable person in the course of business for a consideration inclusive of tax equal to the amount of their value after making the deduction specified in clause (ii) and the tax fell due on the date of delivery.

( b ) the deduction in respect of stocks specified in subparagraph (c) or (d) of paragraph (1) shall be ascertained in the following manner:

• (i) the stocks shall be valued at cost inclusive of tax, or market value, whichever is the lower,

• (ii) there shall be deducted from the total value of stocks ascertained in accordance with clause (i) the value of any stocks included therein in respect of which an invoice issued in accordance with subsection (1), (2) or (3) of section 17 of the Act has been or is likely to be received on or after the relevant day,

• (iii) the amount of the deduction shall be 1 per cent. of their value after making the deduction specified in clause (i).

• (3) Relief claimed in accordance with this Regulation shall be distinguished if included in a return made in accordance with section 19 (3) of the Act.

4 Determination in regard to tax.

4.

4. (1) A determination concerning whether an activity is an exempted activity or the rate at which tax is chargeable in relation to the delivery of goods of any kind, the delivery of goods in any particular circumstances or the rendering of services of any kind may be made for the purposes of section 11 (IB) of the Act by an officer of the Revenue Commissioners authorised by them in that behalf.

• (2) A determination under this Regulation shall be in writing, shall contain the particulars of the determination, shall be signed by the officer making the determination and shall bear the date upon which it is so signed.

• (3) Determinations concerning two or more matters may be included in the same document.

5 Rendering of certain services.

5.

5. (1) Subject to paragraph (2), catering services which are connected with any business activity in which a person engages and which, apart from this Regulation, would not be regarded as rendered in the course of business, shall, in accordance with section 5 (2) of the Act, be regarded as so rendered.

• (2) This Regulation shall not apply to any such services as are referred to in paragraph (1) if the total cost of providing them has not exceeded and is not likely to exceed £300 in any taxable period.

GIVEN this 29th day of August, 1973.

J. F. RICHARDSON,

Revenue Commissioner.

EXPLANATORY NOTE.

These Regulations, which come into operation on the 3rd September, 1973, amend the Value-Added Tax Regulations, 1972, in regard to—

( a ) the date as from which an election to be an accountable person shall have effect,

( b ) the particulars to be furnished by an accountable person in regard to an application to be authorised to account for tax on the basis of cash actually received by him,

( c ) the payment to be made by a person on ceasing to be accountable for tax on the basis of cash actually received by him,

( d ) the accounts to be kept by an accountable person in regard to taxable services rendered within his own business,

( e ) the particulars to be set out on credit notes and debit notes issued by accountable persons, and

( f ) minor textual changes which are mainly consequential on changes in the rates of value-added tax made by the Finance Act, 1973 .

The Regulations also prescribe new procedures in regard to amendments made by the Finance Act, 1973 , under the following headings:

( g ) relief for stock-in-trade held at the commencement of accountability,

( h ) the making of determinations by the Revenue Commissioners in regard to tax, and

( i ) the charge of tax in certain circumstances in respect of the rendering of catering services.