Value-Added Tax Consolidation Act 2010

• (3) The taxable amount of the supply of goods or services provided in respect of a multi-purpose voucher shall be deemed to be equal to the consideration paid for the voucher or, in the absence of information on that consideration, the monetary value indicated on or within the multi-purpose voucher or in the related documentation, less the amount of tax relating to the goods or services supplied.

(4)(a) Each transfer of a single-purpose voucher made by a taxable person acting in his or her own name shall be regarded as a supply of goods or services to which the voucher relates and shall be subject to tax.

• (b) Where a transfer of a single-purpose voucher is made by a taxable person acting in the name of another person, that transfer shall be regarded as a supply of goods or services made by that other person in whose name the taxable person is acting.

• (c) Where the supplier of goods or services is not the taxable person who, acting in his or her own name, issued the single-purpose voucher, that supplier shall be deemed to have made that supply of the goods or services related to that voucher to that taxable person.

• (d) The actual handing over of the goods or the actual provision of the services in return for a single-purpose voucher accepted as consideration or part consideration by the supplier shall not be regarded as an independent transaction and shall not be subject to tax.

• (5) Where a supplier sells a single-purpose voucher to a buyer at a discount and promises to subsequently accept that voucher at its face value in full or part payment of the price of the goods or services purchased by a customer who was not the buyer of the voucher, and who does not normally know the actual price at which the voucher was sold by the supplier, the consideration represented by the voucher shall, subject to regulations (if any), be the sum actually received by the supplier on the sale of the voucher.

• (6) This section shall apply to a single-purpose voucher or a multi-purpose voucher issued on or after 1 January 2019.]

44. Non-business use of immovable goods. [VATA s. 10(4D)]

44.—(1) The amount on which tax is chargeable in relation to a supply of services referred to in section 27(2) in any taxable period shall be an amount equal to one sixth of one twentieth of the cost of the immovable goods used to provide those services, being—

• (a) the amount on which tax was chargeable to the person making the supply in respect of that person’s acquisition or development of the immovable goods referred to in section 27(2), and

• (b) in the case where section 20(2)(c) applied to the acquisition of the immovable goods, the amount on which tax would have been chargeable but for the application of that section,

adjusted to correctly reflect the proportion of the use of the goods in that period.

• (2) The Revenue Commissioners may make regulations specifying methods which may be used—

• (a) to identify the proportion which correctly reflects the extent to which immovable goods are used for the purposes referred to in section 27(2), and

• (b) to calculate the relevant taxable amount or amounts.

Chapter 2 Adjustment and recovery of consideration

45. Adjustment and recovery of consideration. [VATA s. 35(1A) to (2)]

45.—(1) Where, after the making of an agreement for the supply of goods or services and before the date on which under section 74(1) or (2), as may be appropriate, any tax in respect of the transaction falls due, there is a change in the amount of tax chargeable on the supply in question, then, in the absence of agreement to the contrary, there shall be added to or deducted from the total amount of the consideration and any tax stated separately under the agreement an amount equal to the amount of the change in the tax chargeable.

• (2) References in subsection (1) to a change in the amount of tax chargeable on the supply of goods or services include references to a change to or from a situation in which no tax is being charged on the supply.

• (3) Subject to subsection (4), where, in relation to a supply of goods or services by an accountable person, the person issues an invoice in which the tax chargeable in respect of the transaction is stated separately, then, for the purpose of its recovery, the tax so stated shall be deemed to be part of the consideration for the transaction and shall be recoverable accordingly by the person.

• (4) Where the invoice referred to in subsection (3) is issued pursuant to section 66(1), subsection (3) shall not apply unless the invoice is in the form and contains the particulars specified by regulations.

PART 6 Rates and Exemption

Chapter 1 Rates

46. Rates of tax. [VATA s. 11(1), (1A) and (8)]

46.—(1) Tax shall be charged, in relation to the supply of taxable goods or services, the intra-Community acquisition of goods and the importation of goods, at whichever of the following rates is appropriate in any particular case:

• (a) F95[subject to subsection (1A),] F96[23 per cent] of the amount on which tax is chargeable other than in relation to goods or services on which tax is chargeable F97[at any of the rates specified in paragraphs (b), (c), (ca), (caa), F98[(cab),] F99[(cac),] (cb) and (d)];

• (b) zero per cent of the amount on which tax is chargeable in relation to goods in the circumstances specified in paragraphs 1(1) to (3), 3(1) and (3) and 7(1) to (4) and (6) of Schedule 2 or of goods or services of a kind specified in the other paragraphs of that Schedule;

• (c) F97[subject to paragraphs (ca), (caa) F98[, (cab)] F99[, (cac)] and (cb)] 13.5 per cent of the amount on which tax is chargeable in relation to goods or services of a kind specified in Schedule 3;

• F100[(ca) F101[…] 9 per cent in relation to goods or services of a kind specified in F102[paragraphs 7(a), 7A, 12 and 12A] of Schedule 3 on which tax would, but for this paragraph, be chargeable in accordance with paragraph (c);]

• F103[(caa) during the period from 1 May 2022 to F104[31 December 2030], 9 per cent in relation to goods of a kind specified in paragraph 17(2) and (3) of Schedule 3 on which tax would, but for this paragraph, be chargeable in accordance with paragraph (c);]

• F98[(cab) during the period from 8 October 2025 to 25 November 2025, 9 per cent in relation to goods of a kind specified in paragraph 9A of Schedule 3 on which tax would, but for this paragraph, be chargeable in accordance with paragraph (c);]

• F99[(cac) during the period from 26 November 2025 to 31 December 2030, 9 per cent in relation to—

• (i) goods of a kind specified in subparagraph (2) of paragraph 9B of Schedule 3, and

• (ii) services of a kind specified in subparagraph (3) of paragraph 9B of Schedule 3, on which tax would, but for this paragraph, be chargeable in accordance with paragraph (c);]

F105[F106[(cb) 9 per cent in relation to goods or services of a kind specified in paragraphs 3(1), 3(3) and 13(3) of Schedule 3 on which tax would, but for this paragraph, be chargeable in accordance with paragraph (c);]]

• (d) 4.8 per cent of the amount on which tax is chargeable in relation to the supply of livestock F107[…].

• F108[(1A) During the period from 1 September 2020 to 28 February 2021, paragraph (a) of subsection (1) shall have effect as if there were substituted “21 per cent” for “23 per cent”.]

• (2) The rate at which tax is chargeable under section 3(a), (c), (d) or (e) is the rate in force at the time when the tax becomes due as provided by section 74(1) or (2) or 75 (whichever is applicable).

• (3) Goods or services which are specifically excluded from any paragraph of a Schedule shall, unless the contrary intention is expressed, be regarded as excluded from every other paragraph of that Schedule, and shall not be regarded as specified in that Schedule.

(4)(a) The Minister may by order vary Schedule 2 or 3 by adding to or deleting therefrom descriptions of goods or services of any kind or by varying any description of goods or services for the time being specified therein, but no order shall be made under this Chapter for the purpose of increasing any of the rates of tax or extending the classes of activities or goods in respect of which tax is for the time being chargeable.

• (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 has been made and, if a resolution annulling the order is passed by Dáil Éireann within the next 21 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.

• F109[(5)
• (a) Where the European Commission adopts a decision to extend or further extend the period of application of the relief granted by Commission Decision (EU) 2020/491 to a date later than 30 April 2021 or to any later date, as the case may be (in this paragraph referred to as the “extended period”), the Minister shall by order amend subclause (ii) of paragraph 11(4)(a) of Schedule 2 so as to extend or further extend, as the case may be, the period specified in that subclause for such extended period.

• (b) An order under paragraph (a) may, if so expressed, have retrospective effect.

• (c) An order under paragraph (a) shall be laid before Dáil Éireann as soon as may be after it has been made and, if a resolution annulling the order is passed by Dáil Éireann within the next 21 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.

• (d) In this subsection—

“Commission Decision (EU) 2020/491” means Commission Decision (EU) 2020/491 of 3 April 2020³⁴ on relief from import duties and VAT exemption on importation granted for goods needed to combat the effects of the Covid-19 outbreak during 2020, as amended by Commission Decision (EU) 2020/1101 of 23 July 2020³⁵ and Commission Decision (EU) 2020/1573 of 28 October 2020³⁶;

“Covid-19” has the same meaning as in the Emergency Measures in the Public Interest (Covid-19) Act 2020.]

47. Composite and multiple supplies. [VATA s. 11(3)]

47.—(1) Subject to section 41—

• (a) in the case of a composite supply, the tax chargeable on the total consideration which the accountable person is entitled to receive for that composite supply shall be at the rate specified in section 46(1) which is appropriate to the principal supply, but if that principal supply is an exempted activity, tax shall not be chargeable in respect of that composite supply,

• (b) in the case of a multiple supply—

• (i) the tax chargeable on each individual supply in that multiple supply shall be at the rate specified in section 46(1) appropriate to each such individual supply, and

• (ii) in order to ascertain the taxable amount referable to each individual supply for the purpose of applying the appropriate rate thereto, the total consideration which the accountable person is entitled to receive in respect of that multiple supply shall be apportioned between those individual supplies in a way that correctly reflects the ratio which the value of each such individual supply bears to the total consideration for that multiple supply.

• (2) In the case where a person acquires a composite supply or a multiple supply by means of an intra-Community acquisition, this section shall apply to that acquisition.

• (3) The Revenue Commissioners may make regulations as necessary specifying—

• (a) the circumstances or conditions under which a supply may or may not be treated as an ancillary supply, a composite supply, an individual supply, a multiple supply or a principal supply,

• (b) the methods of apportionment which may be applied for the purposes of subsections (1) and (2),

• (c) a relatively small amount, or an element of a supply, which may be disregarded for the purposes of applying this section.

48. Works of art, etc. [VATA s. 11(1AA)]

48.—(1) Notwithstanding section 46(1), tax shall be charged at the rate specified in F110[paragraph (c) or (ca), as appropriate, of section 46(1)] of the amount on which tax is chargeable in relation to—

• (a) the importation into the State of goods specified in Schedule 5,

• (b) the supply of a work of art of the kind specified in paragraph 1 of Schedule 5, effected by its creator or the creator’s successors in title, or

• (c) the supply of a work of art of the kind specified in paragraph 1 of Schedule 5, effected on an occasional basis by an accountable person other than a taxable dealer where—

• (i) that work of art has been imported by the accountable person,

• (ii) that work of art has been supplied to the accountable person by its creator or the creator’s successors in title, or

• (iii) the tax chargeable in relation to the purchase, intra-Community acquisition or importation of that work of art by the accountable person was wholly deductible under Chapter 1 of Part 8.

• (2) Notwithstanding section 46(1), tax shall be charged at the rate specified in F110[paragraph (c) or (ca), as appropriate, of section 46(1)] of the amount on which tax is chargeable in relation to the intra-Community acquisition in the State by an accountable person of a work of art of the kind specified in paragraph 1 of Schedule 5 where the supply of that work of art to that accountable person which resulted in that intra-Community acquisition is a supply of the kind that would be charged at the rate specified in F110[paragraph (c) or (ca), as appropriate, of section 46(1)] in accordance with subsection (1)(b) or (c) if that supply had occurred within the State.

49. Contract work. [VATA s. 11(1AB)]

49.—(1) Notwithstanding section 46(1) but subject to subsection (2), the rate at which tax is chargeable on a supply of contract work shall be the rate that would be chargeable if that supply of services were a supply of the goods being handed over by the contractor to the person to whom that supply is made.

• (2) Subsection (1) shall not apply to a supply of contract work in the circumstances specified in F111[paragraph 3(4) of Schedule 2].

50. Provisions in relation to certain supplies. [VATA s. 11(4), (4A) and (6)]

50.—(1) Where—

• (a) goods are supplied by a manufacturer to a person and materials have been supplied by or on behalf of that person for the manufacture of those goods, and

• (b) the rate of tax chargeable in relation to the supply of the goods (in this subsection referred to as the “goods rate”) exceeds the rate of tax (in this subsection referred to as the “materials rate”) that would be chargeable in relation to a supply within the State of the materials,

then the manufacturer shall, in respect of the supply of such goods, be liable (in addition to any other liability imposed on the manufacturer by this Act) to pay tax on the value of the materials provided to the manufacturer at a rate equivalent to the difference between the goods rate and the materials rate.

• (2) Where—

• (a) goods of a kind specified in paragraph 8 of Schedule 2 are used by a person in the course of the supply by the person 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 or her under this Act) to pay tax on the value of the goods so used at the rate specified in F112[paragraph (c) or (ca), as appropriate, of section 46(1)].

• (3) Where immovable goods consisting of machinery or business installations are let separately from other immovable goods of which they form part, tax shall be chargeable in respect of the transaction at the rate which would be chargeable if it were a hiring of movable goods of the same kind.

51. Determinations on rates and exemptions. [VATA s. 11(1B)]

51.—F113[…]

Chapter 2 Exemptions

52. General rule on exempted activity. [VATA s. 6]

52.—(1) Tax shall not be chargeable in respect of any exempted activity.

• (2)
• F114[(a) The Minister may by order amend Schedule 1.]

• (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 21 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.

PART 7 Provisions Relating to Imports, Exports, etc.

53. Imports — general provisions. [VATA s. 15(3), (6) and (8) and FA 2010 s. 125]

53.—(1) The value of imported goods for the purposes of this section and section 54 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, expenses resulting from the transport of the goods to another place of destination within the Community (if that destination is known at the time of the importation) and other charges levied either outside or, by reason of importation, within the State (other than value-added tax) on the goods and not included in the determination.

• (2) With effect from 1 January 2011, where the importation of goods is followed by a supply or transfer of those goods to a person registered for value-added tax in another Member State, paragraph 2(1) of Schedule 2 applies only if the person who imports those goods (in this subsection referred to as the “importer”)—

• (a) at the time of importation declares the following information:

• (i) the importer’s registration number;

• (ii) the identification number (referred to in the definition in section 2(1) of “person registered for value-added tax”) of the person to whom the goods are supplied or transferred;

and

• (b) provides evidence, if so requested by the Revenue Commissioners, that the imported goods are to be transported or dispatched from the State to another Member State.

• (3) Subject to subsection (1) F115and sections 53A and *[54], the F116[Customs Acts] shall apply to tax referred to in this section or section 54 or 120(7)(b) or (c)* as if it were a duty of customs, with such exceptions and modifications (if any) as may be specified in regulations.

53A. F118[Postponed accounting

53A.—(1) Notwithstanding section 53(3) but subject to subsection (4), an accountable person may account for the tax chargeable under section 3(b) on goods imported into the State by the person in the return to be furnished by the person, under section 76 or 77, in respect of the taxable period in which the tax has become so chargeable.

• (2) Where—

• (a) in accordance with subsection (1), goods have been imported by an accountable person without payment of the tax chargeable on the importation of the goods, and

• (b) the tax is not accounted for in a return furnished by the accountable person under section 76 or 77 in respect of the taxable period in which the tax has become so chargeable,

the tax chargeable in respect of the importation of the goods shall become due as if this section did not apply.

• (3) Where the Revenue Commissioners are satisfied that—

• (a) an accountable person no longer complies with one or more of the requirements specified in regulations made under section 120(7)(aa)(i), or

• (b) one or more conditions or restrictions, imposed by regulations made under section 120(7)(aa)(ii) as respects the accounting by an accountable person for tax by the means referred to in subsection (1), are no longer satisfied or are no longer being observed,

then subsection (4) applies.

• (4) Where this subsection applies, the Revenue Commissioners shall serve a notice in writing (a “notice of exclusion”) on the accountable person stating that the person is, from a date specified in the notice, excluded from accounting for tax by the means referred to in subsection (1) and if such a notice is served on that person then the means referred to in subsection (1) for accounting for tax shall, from the date specified in the notice, not be available to that person.

• (5) Where a notice of exclusion is served on a person under subsection (4), the person may appeal the notice to the Appeal Commissioners in accordance with section 949I of the Taxes Consolidation Act 1997, within the period of 30 days after the date of the notice.]

54. Remission or repayment of tax on certain imported goods. [VATA s. 15(5) and (5A)]

54.—(1) 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 Commissioners that he or she has already borne tax on the goods.

• (2) Subject to subsection (3), the Revenue Commissioners shall, in accordance with regulations, repay the tax chargeable on the importation of goods where the goods have been dispatched or transported—

• (a) to another Member State from outside the Community, and

• (b) to a person (other than an individual) who is not registered for value-added tax in that other Member State.

• (3) Subsection (2) shall apply only where it is shown to the satisfaction of the Revenue Commissioners that the goods in question have been subject to value-added tax referred to in the VAT Directive in that other Member State.

55. Goods in transit — miscellaneous provisions. [VATA s. 15B(1) to (5A) and (7)]

55.—(1)(a) In this section—

“date of accession” means—

• (i) 1 January 1995 in respect of the Republic of Austria, the Republic of Finland (excluding the Åland Islands) and the Kingdom of Sweden,

• (ii) 1 May 2004 in respect of the Czech Republic, the Republic of Estonia, the Republic of Cyprus, the Republic of Latvia, the Republic of Lithuania, the Republic of Hungary, the Republic of Malta, the Republic of Poland, the Republic of Slovenia and the Slovak Republic,

• (iii) 1 January 2007 in respect of the Republic of Bulgaria and F119[Romania,]

• F120[(iv) 1 July 2013 in respect of the Republic of Croatia;]

“enlarged Community” means the Community after the accession of the new Member States;

“new Member State” means any state referred to in the definition of “date of accession” with effect from the relevant date.

• (b) A word or expression that is used in this section and is also used in Council Directive No. 94/76/EC of 22 December 1994 ³, has, unless the contrary intention appears, the meaning in this section that it has in that Council Directive.

• (2) Where—

• (a) goods from a new Member State were imported into the State before the date of accession,

• (b) the tax referred to in section 3(b) was not chargeable because the goods were, at the time of such importation, placed—

• (i) under an arrangement for temporary importation with total exemption from customs duty, or

• (ii) under one of the arrangements referred to in Article 156(1) of the VAT Directive,

and

• (c) the goods are still subject to such an arrangement on the date of accession,

then the provisions in force at the time the goods were placed under that arrangement shall continue to apply until the goods leave that arrangement on or after the date of accession.

(3)(a) In this subsection “common transit procedure” means the procedure approved by the Council of the European Communities by Council Decision No. 87/415/EEC of 15 June 1987 ⁴, approving the Convention done at Interlaken on the 20th day of May, 1987, between the European Community, the Republic of Austria, the Republic of Finland, the Republic of Iceland, the Kingdom of Norway, the Kingdom of Sweden, and the Swiss Confederation on a common transit procedure, the text of which is attached to that Council Decision.

• (b) Where—

• (i) goods were placed under the common transit procedure or under another customs transit procedure in a new Member State before the date of accession, and

• (ii) those goods have not left the procedure concerned before the date of accession,

then the provisions in force at the time the goods were placed under that procedure shall continue to apply until the goods leave that procedure on or after the date of accession.

• (4) Where goods were in free circulation in a new Member State prior to entry into the State, an importation into the State shall be deemed to occur in the following cases:

• (a) the removal (including irregular removal) within the State of the goods referred to in subsection (2) from the arrangement referred to in subsection (2)(b)(i);

• (b) the removal (including irregular removal) within the State of the goods referred to in subsection (2) from the arrangement referred to in subsection (2)(b)(ii);

• (c) the termination within the State of any of the procedures referred to in subsection (3).

• (5) An importation into the State shall be deemed to occur when goods, which were supplied within a new Member State before the date of accession, and which were not chargeable to a value-added tax in that new Member State, because of their exportation from that new Member State, are used in the State on or after the date of accession, and have not been imported before that date.

• (6) The tax referred to in section 3(b) shall not be chargeable where—

• (a) the imported goods referred to in subsections (4) and (5) are dispatched or transported outside the enlarged Community,

• (b) the imported goods referred to in subsection (4)(a) are other than means of transport and are being returned to the new Member State from which they were exported and to the person who exported them, or

• (c) the imported goods referred to in subsection (4)(a) are means of transport which were acquired in or imported into a new Member State before the date of accession in accordance with the general conditions of taxation in force on the domestic market of that new Member State and which have not been subject by reason of their exportation to any exemption from or refund of a value-added tax in that new Member State.

• (7) Subsection (6)(c) shall be deemed to be complied with where it is shown to the satisfaction of the Revenue Commissioners that—

• (a) the date of the first use of the means of transport was before 1 January 1987 in the case of means of transport entering the State from the Republic of Austria, the Republic of Finland (excluding the Åland Islands) or the Kingdom of Sweden,

• (b) the date of the first use of the means of transport was before 1 May 1996 in the case of means of transport entering the State from the Czech Republic, the Republic of Estonia, the Republic of Cyprus, the Republic of Latvia, the Republic of Lithuania, the Republic of Hungary, the Republic of Malta, the Republic of Poland, the Republic of Slovenia or the Slovak Republic,

• (c) the date of the first use of the means of transport was before 1 January 1999 in the case of means of transport entering the State from the Republic of Bulgaria or F121[Romania,]

• F120[(ca) the date of the first use of the means of transport was before 1 July 2005 in the case of means of transport entering the State from the Republic of Croatia, or]

• (d) the tax due by reason of the importation does not exceed €130.

56. Zero-rating scheme for qualifying businesses. [VATA s. 13A]

56.—(1) For the purposes of this section and paragraph 7(7) of Schedule 2—

“authorised person” means a qualifying person who has been authorised in accordance with subsection (3);

“qualifying person” means an accountable person whose turnover from—

• (a) supplies of goods made in accordance with paragraph 1(1) or 3(1) or (3) of Schedule 2,

• (b) supplies of contract work where the place of supply is deemed to be F122[a Member State other than] the State, and

• (c) supplies of contract work made in accordance with paragraph 3(4) of Schedule 2,

amounts to F123[…] 75 per cent F124[or more] of the person’s total turnover from supplying goods and services F125[for the period of 12 months immediately preceding the making of an application for authorisation under subsection (2)], except that turnover from goods supplied to an accountable person that are subsequently leased back from that person are excluded from the total turnover for the purpose of determining whether the accountable person is a qualifying person;

“qualifying goods” means all taxable goods excluding motor vehicles within the meaning of section 60(1) and petrol;

“qualifying services” means all taxable services excluding the provision of food or drink, accommodation, other personal services, entertainment services or the hire of motor vehicles within the meaning of section 60(1).

• (2) A person who wishes to become an authorised person shall—

• (a) complete such application form as may be provided by the Revenue Commissioners for that purpose,

• F125[(aa) provide in the application form the particulars specified in such regulations as may be made under section 120(7)(ab),]

• (b) certify the particulars shown on such form to be correct, and

• (c) submit to the Revenue Commissioners the completed and certified application form, together with such further information in support of the application as may be requested by them.

(3)F126[(a) The Revenue Commissioners shall, subject to paragraph (ab), issue to a person, who has made an application under subsection (2), an authorisation in writing where they are satisfied that—

• (i) there is no risk to revenue, and

• (ii) the person—

• (I) is a qualifying person, and

• (II) has furnished the particulars, duly certified, as required under subsection (2),

and if not so satisfied shall refuse to issue the authorisation.]

• F125[(aa) Where the Revenue Commissioners decide under paragraph (a) to refuse to issue an authorisation, they shall give notice in writing to the person concerned of the decision and the reasons for that decision.

• (ab) An authorisation issued under paragraph (a) shall be subject to the conditions that the authorised person, during the period for which the authorisation is valid, shall—

• (i) keep full and true records in accordance with section 84, and

• (ii) comply with the provisions of—

• (I) this Act,

• (II) the Tax Acts (within the meaning of section 1 of the Taxes Consolidation Act 1997 ),

• (III) the Capital Gains Tax Acts (within the meaning of section 1 of the Taxes Consolidation Act 1997 ),

• (IV) the statutes relating to the duties of excise and to the management of those duties,

• (V) the Customs Act 2015 , and

• (VI) any instrument made under any of the enactments referred to in clauses (I) to (V).]

• (b) An authorisation issued in accordance with paragraph (a) shall be valid for such period as may be determined by the Revenue Commissioners.

• (c) Where a person who has been authorised in accordance with paragraph (a) ceases to be a qualifying person, he or she shall, by notice in writing, advise the Revenue Commissioners accordingly not later than the end of the taxable period during which he or she ceased to be a qualifying person.

• F125[(ca) An authorised person shall, by notice in writing, advise the Revenue Commissioners immediately of any change in the particulars referred to in subsection (2)(aa).]

• (d) F123[…]

• F125[(3A)
• (a) The Revenue Commissioners shall, by notice in writing, cancel an authorisation issued to a person in accordance with subsection (3) where they are satisfied that—

• (i) the person is no longer a qualifying person,

• (ii) the person has furnished, or there is furnished on his or her behalf, when making an application under subsection (2) for authorisation, particulars which are, in a material respect, false, incorrect or misleading, or

• (iii) the person has failed or is failing to comply with all or any of the conditions set out in subsection (3)(ab).

• (b) A cancellation under paragraph (a) shall take effect—

• (i) if no appeal is brought under subsection (10), on the date specified in the notice given under paragraph (a), or

• (ii) if an appeal is brought under subsection (10), on the date on which the appeal has been finally determined or is withdrawn or abandoned.

• (3B) Where—

• (a) a person’s authorisation is cancelled under subsection (3A), and

• (b) it appears to be requisite to the Revenue Commissioners to do so for the protection of the revenue, the Revenue Commissioners may, notwithstanding any obligations as to secrecy, or other restriction upon disclosure of information imposed on them by any enactment or otherwise—

• (i) inform the suppliers to the person to whom the authorisation relates, in so far as is practicable, of—

• (I) the cancellation of that person’s authorisation,

• (II) the number of the authorisation so cancelled,

• (III) the date from which the cancellation has effect, and

• (IV) the name and address of the person to whom the authorisation issued,

• (ii) publish in Iris Oifigiúil a notice stating—

• (I) that the authorisation has been cancelled,

• (II) the number of the authorisation so cancelled,

• (III) the date from which the cancellation has effect, and

• (IV) the name and address of the person to whom the authorisation issued,

and

• (iii) make publicly available the information which has been published in accordance with subparagraph (ii) in any other publication and in any manner, form, format or media.]

• (4) An authorised person shall furnish a copy of the authorisation referred to in subsection (3) to each accountable person in the State who supplies taxable goods or taxable services to the authorised person.

• (5) An accountable person who supplies goods or services in circumstances where paragraph 7(7) of Schedule 2 applies shall, in addition to the details to be included on each invoice, credit note or other document required to be issued in accordance with Chapter 2 of Part 9, include on that invoice, credit note or other document a reference to the number of the authorisation issued to the authorised person in accordance with subsection (3).

• (6) In relation to each consignment of goods to be imported by an authorised person at the rate specified in section 46(1)(b) by virtue of paragraph 7(7) of Schedule 2 the following conditions shall be complied with:

• (a) a copy of the authorisation referred to in subsection (3) shall be produced with the relevant customs entry; and

• (b) the relevant customs entry shall incorporate—

• (i) a declaration by the authorised person, or by his or her representative duly authorised in writing for that purpose, that he or she is an authorised person in accordance with this section for the purposes of paragraph 7(7) of Schedule 2, and

• (ii) a claim for importation at the rate specified in section 46(1)(b).

• (7) For the purposes of section 93(1)(c)(ii), the tax charged at the rate specified in section 46(1)(b) by virtue of paragraph 7(7) of Schedule 2 shall be deemed to be tax which is deductible under Chapter 1 of Part 8.

• (8) Where an authorised person is in receipt of a service in respect of which, had paragraph 7(7) of Schedule 2 not applied, tax would have been chargeable at a rate other than the rate specified in section 46(1)(b) and all or part of such tax would not have been deductible by the authorised person under Chapter 1 of Part 8, then that authorised person shall, in relation to such service, be liable to pay tax as if he or she had supplied the service for consideration in the course or furtherance of his or her business to a person who is not an authorised person.

• (9) For the purposes of this section, and subject to the direction and control of the Revenue Commissioners, any power, function or duty conferred or imposed on them may be exercised or performed on their behalf by an officer of the Revenue Commissioners.

• F125[(10) Any person aggrieved by a decision of the Revenue Commissioners in relation to—

• (a) the refusal under subsection (3)(a) to issue an authorisation, or

• (b) the cancellation of an authorisation under subsection (3A),

may appeal the decision to the Appeal Commissioners, in accordance with section 949I of the Taxes Consolidation Act 1997, within the period of 30 days after the date of the notice of that decision.]

57. Remission of tax on goods exported, etc. [VATA s. 13(1)(a) and (2)(a)]

57.—(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 Commissioners are satisfied that the goods have been or are to be exported.

• (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 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.

58. Retail export scheme. [VATA s. 13(1A) to (1D), (3B) and (3C)]

58.—(1) In this section—

F127[“traveller” means a person whose domicile or habitual residence is not situated within the Community;]

“traveller’s qualifying goods” means goods (other than goods transported by the traveller for the equipping, fuelling and provisioning of pleasure boats, private aircraft or other means of transport for private use) which are supplied within the State to a traveller and which are exported by or on behalf of that traveller by the last day of the 3rd month following the month in which the supply takes place;

“VAT refunding agent” means a person who supplies services which consist of the procurement of a zero-rating (within the meaning of subsection (2)) or repayment of tax in relation to supplies of a traveller’s qualifying goods.

• (2) The Revenue Commissioners shall, subject to and in accordance with regulations (if any), allow the application of section 46(1)(b) (in this section referred to as “zero-rating”) to—

• F127[(a) the supply of a traveller’s qualifying goods, where the total value of that supply of goods, including tax, is more than €75, and]

• (b) the supply of services by a VAT refunding agent consisting of the service of repaying the tax claimed by a traveller in relation to the supply of a traveller’s qualifying goods or the procurement of the zero-rating of the supply of a traveller’s qualifying goods,

where they are satisfied that the supplier of the goods or services, as the case may be—

• (i) has at the time of the supply of the goods taken all reasonable steps to confirm that the purchaser is a traveller as defined in this section,

• (ii) has proof that the goods were exported by or on behalf of the traveller by the last day of the 3rd month following the month in which the supply takes place,

• (iii) has proof that, where an amount of tax has been charged to the traveller in respect of a supply of goods covered by paragraph (ii), that the amount to be repaid to the traveller has been repaid to that traveller no later than the 25th working day following receipt by the supplier of the traveller’s claim to repayment,

• F128[(iiia) has, in respect of a traveller whose domicile or habitual residence is in the United Kingdom, proof that—

• (I) the goods have been imported into the United Kingdom by or on behalf of the traveller, and

• (II) value-added tax and duties of customs and excise, chargeable by virtue of the law of the United Kingdom, have been paid on the importation of those goods,]

• (iv) notifies the traveller in writing of any amount (including the mark-up) charged by the supplier for procuring the repayment of the amount claimed or arranging for the zero-rating of the supply and where an amount so notified is expressed in terms of a percentage or a fraction, such percentage or fraction shall relate to the tax remitted or repayable under this subsection,

• (v) uses, as the exchange rate in respect of moneys being repaid to a traveller in a currency other than the currency of the State—

• (I) unless subparagraph (II) applies, the latest selling rate recorded by the Central Bank of Ireland for the currency in question at the time of the repayment,

• (II) if there is an agreement with the Revenue Commissioners for a method to be used in determining the exchange rate, the exchange rate obtained using that method,

and

• (vi) has made known to the traveller such details concerning the transaction as may be specified in regulations.

• (3) Regulations may make provision for the authorisation, subject to certain conditions, of accountable persons or a class of accountable persons for the purposes of zero-rating of the supply of a traveller’s qualifying goods or to operate as a VAT refunding agent in the handling of a repayment of tax on the supply of a traveller’s qualifying goods and such regulations may provide for the cancellation of such authorisation and matters consequential to such cancellation.

• (4) A VAT refunding agent acting as such may, in accordance with regulations, treat the tax charged to the traveller on the supply of that traveller’s qualifying goods as tax that is deductible by the agent in accordance with section 59(2) provided that that agent fulfils the conditions set out in subsection (2) in respect of that supply.

• (5) Where, in relation to a supply of goods, any of the conditions of paragraphs (i) to (vi) of subsection (2) are not complied with or are not complied with within the time limits specified in those paragraphs, where applicable, then—

• (a) that supply is not a supply of traveller’s qualifying goods, and

• (b) zero-rating is not applicable to the supply of services by a VAT refunding agent (if any) in respect of those goods.

• (6) For the purposes of this section, and subject to the direction and control of the Revenue Commissioners, any power, function or duty conferred or imposed on them may be exercised or performed on their behalf by an officer of the Revenue Commissioners.

PART 8 Deductions

Chapter 1 General provisions

59. Deduction for tax borne or paid. [VATA s. 12(1), (1A) and (2)]

59.—(1) In this subsection and subsection (2)—

“qualifying activities” means—

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

• (b) supplies of goods which, by virtue of section 30, are deemed to have taken place in the territory of another Member State but only if the supplier of those goods is registered for value-added tax in that other Member State,

• (c) F129[…]

• (d) services specified in F130[paragraph 6(1), 7(1)] or 8 of Schedule 1 supplied—

• (i) outside the Community, or

• F131[(ii) directly in connection with the export of goods to a place outside the Community, and]

• (e) F132[…]

• (f) supplies of goods or services outside the State which would be taxable supplies if made in the State;

F133[“qualifying vehicle” means a motor vehicle which, for the purposes of vehicle registration tax, is first registered, in accordance with section 131 of the Finance Act 1992—

• (a) in the period on or after 1 January 2009 and up to 31 December 2020, and has, for the purposes of that registration, a level of CO2 emissions of less than 156g/km, or

• (b) on or after 1 January 2021, and has, for the purposes of that registration, a level of CO2 emissions of less than 140g/km.]

• (2) Subject to subsection (3), in computing the amount of tax payable by an accountable person in respect of a taxable period, that person may, in so far as the goods and services are used by him or her for the purposes of his or her taxable supplies or of any of the qualifying activities, deduct—

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

• (b) in respect of goods imported by him or her in the period, the tax paid by him or her or deferred as established from the relevant customs documents kept by him or her in accordance with section 84(3),

• (c) subject to such conditions (if any) as may be specified in regulations, the tax chargeable during the period, being tax for which he or she is liable in respect of intra-Community acquisitions of goods,

• (d) subject to section 61 and regulations (if any), 20 per cent of the tax charged to the accountable person F134[by means of invoices or other documents prepared in the manner prescribed by regulations or by relevant customs documents,] in respect of the purchase, hiring, intra-Community acquisition or importation of a qualifying vehicle, where that vehicle is used primarily for business purposes, being at least 60 per cent of the use to which that vehicle is put, and where the accountable person subsequently disposes of that vehicle the tax deducted by that person in accordance with this subsection shall be treated as if it were not deductible by that person for the purposes of paragraph 12(c) of Schedule 1,

• (e) the tax chargeable during the period, being tax for which the accountable person is liable by virtue of section 10(1) in respect of the supply to such person of gas through the natural gas distribution network, F135[or of heat or cooling energy through heating or cooling networks,] or of electricity, but only where the accountable person would be entitled to a deduction of that tax elsewhere under this subsection if that tax had been charged to such person by another accountable person,

• (f) the tax chargeable during the period, being tax for which the accountable person is liable by virtue of section 10(2) in respect of goods which are installed or assembled but only where the accountable person would be entitled to a deduction of that tax elsewhere under this subsection if that tax had been charged to such person by another accountable person,

• (g) the tax chargeable during the period, being tax for which he or she is liable by virtue of F136[section 12 or 17(1)] in respect of services received by him or her,

• (h) the tax chargeable during the period, being tax for which the recipient (within the meaning of section 16(2)) is liable by virtue of section 16(2) in respect of greenhouse gas emission allowances (within the meaning of section 16(2)) received by that recipient, but only where the recipient would be entitled to a deduction of that tax elsewhere under this subsection if that tax had been charged to such recipient by an accountable person,

• (i) the tax chargeable during the period, being tax for which the principal is liable by virtue of section 16(3) in respect of construction operations services received by that principal but only where that principal would be entitled to a deduction of that tax elsewhere under this subsection if that tax had been charged to such principal by another accountable person,

• F137[(ia) the tax chargeable during the period, being tax for which the recipient (within the meaning of section 16(4)(b)) is liable by virtue of section 16(4)(b) in respect of scrap metal (within the meaning of section 16(4)(a)) received by that recipient, but only where the recipient would be entitled to a deduction of that tax elsewhere under this subsection if that tax had been charged to such recipient by an accountable person, ]

• F138[(ib) the tax chargeable during the period, being tax for which the recipient (within the meaning of section 16(5)(b)) is liable by virtue of section 16(5)(b) in respect of supplies of construction work received by that recipient, but only where that recipient would be entitled to a deduction of that tax elsewhere under this subsection if that tax had been charged to such recipient by an accountable person,]

• F139[(ic) the tax chargeable during the period, being tax for which the recipient (within the meaning of section 16(6)(b)) is liable by virtue of section 16(6) (b) in respect of supplies of gas or of electricity received by that recipient, but only where that recipient would be entitled to a deduction of that tax elsewhere under this subsection if that tax had been charged to such a recipient by an accountable person,

• (id) the tax chargeable during the period, being tax for which the recipient (within the meaning of section 16(7)(b)) is liable by virtue of section 16(7)(b) in respect of a gas or an electricity certificate received by that recipient, but only where that recipient would be entitled to a deduction of that tax elsewhere under this subsection if that tax had been charged to such a recipient by an accountable person,]

• F130[(j) the tax chargeable during the period, being tax for which the accountable person is liable F140[by virtue of section 94(6)(a) or (7)] or 95(8)(c) to (e), in respect of a supply to that person of immovable goods,]

• (k) the tax chargeable during the period in respect of goods (other than supplies of goods referred to in section 30) treated as supplied by him or her in accordance with section 19(1)(f),

• (l) subject to and in accordance with regulations, in respect of goods supplied under section 19(1)(h) an amount equal to any residual tax included in the consideration for the supply,

• (m) F141[…]

• (n) the tax chargeable during the period in respect of services treated as supplied by him or her for consideration in the course or furtherance of his or her business in accordance with section 27(1)(c),

• (o) a flat-rate addition, which shall be deemed to be tax, charged to him or her during the period by means of invoices prepared in the manner prescribed by regulations and issued to him or her in accordance with section 86(1),

• (p) the tax chargeable during the period, being tax for which he or she is liable by virtue of section 90(5)(a) in respect of investment gold (within the meaning of section 90) received by him or her, and

• (q) subject to such conditions (if any) as may be specified in regulations, in respect of goods referred to in section 92, the tax due in the period in accordance with that section.

• F142[(2A) F143[…]]

• (3) Subsection (2) shall not apply to—

• (a) an accountable person referred to in [F144section 9(4) or 12(3),]

• (b) an accountable person referred to in section 9(6) or 12(5) unless the tax relates to racehorse training services supplied F144[by him or her, or]

• F145[(c) an accountable person referred to in section 22(3) or 28(4), or a taxable person who is deemed to have supplied a letting in accordance with section 28(5), in respect of supplies to which those sections apply.]

(4)(a) A person who, by election F146[…] is deemed to become an accountable person, shall, in accordance with regulations, be entitled, in computing the amount of tax payable by him or her in respect of the first taxable period for which he or she is so deemed to be an accountable person, to treat as tax deductible under subsection (2) such part of the value of the stock-in-trade held by him or her immediately before the commencement of that taxable period as could reasonably be regarded as the amount which he or she would be entitled to claim under subsection (2) if that person had been an accountable person at the time of the delivery to him or her of such stock-in-trade.

• (b) No claim shall lie under this subsection for a deduction for the tax relating to any stock-in-trade if, and to the extent that, a deduction under subsection (2) could be claimed apart from this subsection.

• (5) Where, in relation to any taxable period, the total amount deductible under this Chapter exceeds the amount which, but for this Chapter, would be payable in respect of such period, the excess shall be refunded to the accountable person in accordance with section 99(1), but subject to section 100.

60. General limits on deductibility. [VATA s. 12(3) and s. 12(3A) (in part)]

60.—(1) In this subsection and subsection (2)—

“delegate” means a taxable person or a taxable person’s employee or agent who attends a qualifying conference in the course or furtherance of the taxable person’s business;

“motor vehicles” means motor vehicles designed and constructed for the conveyance of persons by road and sports motor vehicles, estate cars, station wagons, motor cycles, motor scooters, mopeds and auto cycles, whether or not so designed and constructed, excluding vehicles designed and constructed for the carriage of more than 16 persons (inclusive of the driver), invalid carriages and other vehicles of a type designed for use by invalids or infirm persons;

“qualifying accommodation” means the supply to a delegate of a service consisting of the letting of immovable goods F147[…]covered by paragraph 11 of Schedule 3, for a maximum period starting from the night prior to the date on which the qualifying conference commences and ending on the date on which the conference concludes;

“qualifying conference” means a conference or meeting in the course or furtherance of business organised to cater for 50 or more delegates, which takes place at a venue designed and constructed for the purposes of hosting 50 or more delegates and in respect of which the person responsible for organising the conference issues in writing the details of the conference to each taxable person who attends or sends a delegate, and such details shall include—

• (a) the location and dates of the conference,

• (b) the nature of the business being conducted,

• (c) the number of delegates for whom the conference is organised, and

• (d) the name, business address and value-added tax registration number of the person responsible for organising the conference.

(2)(a) Notwithstanding anything in this Chapter, a deduction of tax under this Chapter shall not be made if, and to the extent that, the tax relates to—

• F148[(i) expenditure incurred by the accountable person on food or drink, or accommodation (other than qualifying accommodation in connection with attendance at a qualifying conference), or other personal services, for the accountable person, the accountable person’s agents or employees, except to the extent (if any) that such expenditure is incurred for the purposes of a supply of services, being the provision of food or drink, or accommodation, or other personal services, in respect of which that accountable person is accountable for tax,]

• (ii) expenditure incurred by the accountable person on food or drink, or accommodation or other entertainment services, where such expenditure forms all or part of the cost of providing an advertising service in respect of which tax is due and payable by the accountable person,

• F149[(iia) expenditure incurred by the accountable person on the acquisition or development, on or after 1 January 2011, of immovable goods forming part of the assets of a business where such goods are used or to be used for any purpose other than those of the accountable person’s business,]

• (iii) entertainment expenses incurred by the accountable person, his or her agents or his or her employees,

• (iv) subject to section 59(2)(d), the purchase, hiring, intra-Community acquisition or importation of motor vehicles otherwise than as stock-in-trade or for the purpose of the supply thereof by a person supplying financial services of the kind specified in paragraph 6(1)(e) of Schedule 1 in respect of those motor vehicles as part of an agreement of the kind referred to in section 19(1)(c) or for the purposes of a business which consists in whole or part of the hiring of motor vehicles or for use, in a driving school business, for giving driving instruction,

• (v) the purchase, intra-Community acquisition or importation of petrol otherwise than as stock-in-trade, or

• (vi) the procurement of a supply of contract work where such supply consists of the handing over of goods to which this paragraph applies.

(b)(i) In subparagraph (i) of paragraph (a), reference to the provision of accommodation includes expenditure by the accountable person on a building, including the fitting out of such building, to provide such accommodation.

• (ii) In subparagraph (iii) of paragraph (a), entertainment expenses includes expenditure on a building or facility, including the fitting out of such building or facility, to provide such entertainment.

• (3) Notwithstanding anything in this Chapter, where section 87(3) or (8) or 89(3) has been applied to a supply of goods to an accountable person, that accountable person shall not deduct, in accordance with section 59(2), any tax in relation to the supply to him or her.

• F150[(4) Notwithstanding anything in this Chapter, a person shall not deduct any tax on expenditure incurred for the purpose of supplies made in accordance with Chapter 5 of Part 10.]

61. Apportionment for dual-use inputs. [VATA s. 12(4)]

61.—(1) In this section—

“deductible supplies or activities” means the supply of taxable goods or taxable services, or the carrying out of qualifying activities within the meaning of section 59(1);

“dual-use inputs” means movable goods or services (other than goods or services on the purchase or acquisition of which, by virtue of section 60(2), a deduction of tax shall not be made, or services related to the development of immovable goods that are subject to Chapter 2) which are not used solely for the purposes of either deductible supplies or activities or non-deductible supplies or activities;

F151[“non-deductible supplies or activities” means the supply of goods or services or the carrying out of activities other than deductible supplies or activities, and, in the case of immovable goods acquired or developed by an accountable person on or after 1 January 2011, includes any activity consisting of the use of those goods, or part of those goods, for any purpose other than the accountable person’s business;]

“total supplies and activities” means deductible supplies or activities and non-deductible supplies or activities.

• (2) Where an accountable person engages in both deductible supplies or activities and non-deductible supplies or activities, then, in relation to the person’s acquisition of dual-use inputs for the purpose of that person’s business for a period, the person shall be entitled to deduct in accordance with section 59(2) only such proportion of tax, borne or payable on that acquisition, which is calculated in accordance with this section and regulations, as being attributable to his or her deductible supplies or activities and such proportion of tax is, for the purposes of this section, referred to as the “proportion of tax deductible”.

• (3) For the purposes of this section, the reference in subsection (2) to “tax, borne or payable” shall, in the case of an acquisition of a qualifying vehicle (within the meaning of section 59(1)) be deemed to be a reference to “20 per cent of the tax, borne or payable”.

• F152[(4) Subject to subsection (5), the proportion of tax deductible by an accountable person in a taxable period shall be calculated on the basis of the ratio which the amount of the person’s tax-exclusive turnover from deductible supplies or activities in the accounting year in which that taxable period ends bears to the person’s tax-exclusive turnover from total supplies and activities in that accounting year.

• (5) Where the proportion of tax deductible calculated in accordance with subsection (4) does not—

• (a) correctly reflect the extent to which the dual-use inputs are used for the purposes of the person’s deductible supplies or activities, or

• (b) have due regard to the range of the person’s total supplies and activities,

the accountable person shall use any other basis which results in a proportion of tax deductible which—

• (i) correctly reflects the extent to which the dual-use inputs are used for the purposes of the person’s deductible supplies or activities, and

• (ii) has due regard to the range of the person’s total supplies and activities.]

• (6) Where it is necessary to do so to ensure that the proportion of tax deductible by an accountable person is in accordance with F152[this section,] the accountable person shall—

• (a) calculate a separate proportion of tax deductible for any part of that person’s business, or

• (b) exclude, from the calculation of the proportion of tax deductible, amounts of turnover from incidental transactions by that person of the kind specified in paragraph 6 of Schedule 1 or amounts of turnover from incidental transactions by that person in immovable goods.

• (7) The proportion of tax deductible as calculated by an accountable person for a taxable period shall be adjusted in accordance with regulations if, for the accounting year in which the taxable period ends, that proportion does not—

• (a) correctly reflect the extent to which the dual-use inputs are used for the purposes of the person’s deductible supplies or activities, or

• (b) have due regard to the range of the person’s total supplies and activities.

62. Reduction of tax deductible in relation to qualifying vehicles. [VATA s. 12(4A)]

62.—(1)(a) This subsection applies where an accountable person deducts tax in relation to the purchase, intra-Community acquisition or importation of a qualifying vehicle (within the meaning of section 59(1)) in accordance with section 59(2)(d), and disposes of that vehicle within 2 years of that purchase, acquisition or importation.

• (b) The accountable person shall be obliged to reduce the amount of the tax deductible by that person for the taxable period in which the qualifying vehicle is disposed of by an amount calculated in accordance with the formula—

TD × (4 — N)

4

where—

TD is the amount of tax deducted by that person on the purchase, acquisition or importation of that vehicle, and

N is a number that is equal to the number of days from the date of purchase, acquisition or importation of that vehicle by that person to the date of disposal by that person, divided by 182 and rounded down to the nearest whole number,

but if that N is greater than 4 then N shall be 4.

(2)(a) This subsection applies where an accountable person deducts tax in relation to the purchase, intra-Community acquisition or importation of a qualifying vehicle (within the meaning of section 59(1)) in accordance with section 59(2)(d) and that vehicle is subsequently used for less than 60 per cent business purposes in a taxable period.

• (b) The accountable person is obliged to reduce the amount of tax deductible by that person for that taxable period by an amount calculated in accordance with the formula—

TD × (4 — N)

4

where—

TD is the amount of tax deducted by that person on the purchase, acquisition or importation of the qualifying vehicle, and