Value-Added Tax Consolidation Act 2010

• F257[(4) A scheme participant shall remit the tax payable in relation to a calendar quarter under the provisions of the Union scheme to the tax authorities of the Member State of identification by the end of the month immediately following the end of the relevant calendar quarter and, for the purposes of this Act, to the extent that that tax payable relates to—

• (a) supplies of scheme services,

• (b) intra-Community distance sales of goods, or

• (c) qualifying domestic supplies of goods, taxable in the State, the tax payable shall be—

• (i) treated as if it were tax payable in accordance with section 76, and

• (ii) deemed to have been paid to the Collector-General on the date it was received by the tax authorities of the Member State of identification, and this Act shall apply to a scheme participant and have effect as if in section 76(1)—

• (I) “by the end of the month” were substituted for “within 9 days immediately after the 10th day of the month”,

• (II) “a calendar quarter” were substituted for “a taxable period”, and

• (III) in paragraphs (a)(i) and (b) “that calendar quarter” were substituted for “that taxable period” in each place.]

• (5) Where supplies have been made using a currency other than the euro, the exchange rate to be used for the purpose of expressing the corresponding amount in euro in the VAT return shall be that published by the European Central Bank for the last day of the calendar quarter to which the VAT return relates or, if there is no publication on that date, on the next date of publication.

• F257[(6) A scheme participant—

• (a) shall not, in computing the amount of tax payable by him or her in respect of supplies of scheme services, intra-Community distance sales of goods or qualifying domestic supplies of goods, be entitled to deduct any tax borne or paid in relation to those supplies or sales in the VAT return, but

• (b) shall—

• (i) be entitled to claim a refund of such tax in accordance with, and using the rules applicable to, section 101, notwithstanding subsection (14) of that section, or

• (ii) where that scheme participant is an accountable person other than in relation to supplies of scheme services, intra-Community distance sales of goods or qualifying domestic supplies of goods, subject to Chapter 1 of Part 8, be entitled to deduct the tax borne or paid in the return which he or she is obliged to submit in accordance with Chapter 3 of Part 9.]

• F257[(7) Notwithstanding section 84, a scheme participant who supplies scheme services, makes intra-Community distance sales of goods or makes qualifying domestic supplies of goods, which are taxable in the State, shall be bound by the requirements of section 91D(14)(a), (b) and (d) in relation to such supplies or sales and shall retain such records until the expiry of a period of 10 years from 31 December of the year during which the transaction was carried out.]]

91F. F258[Regulations: special schemes for telecommunications services, broadcasting services and electronically supplied services

F259[91F.—(1) The Revenue Commissioners may make regulations as necessary for the purposes of giving effect to the non-Union scheme or the Union scheme, as the case may be.

• (2) The Revenue Commissioners may make regulations as necessary for the purposes of giving effect to the schemes contained in sections 91G to 91K.]]

91G. F260[Electronic interfaces facilitating distance sales of goods

91G.—(1) (a) Where a taxable person facilitates (within the meaning of Article 5b of the Implementing Regulation), through the use of an electronic interface such as a marketplace, platform, portal or similar means, the distance sale of goods imported from third territories or third countries in consignments of an intrinsic value which does not exceed €150, the taxable person shall be deemed to have received and supplied those goods himself or herself.

• (b) Where a taxable person facilitates (within the meaning aforesaid), through the use of an electronic interface such as a marketplace, platform, portal or similar means, the supply of goods within the Community by a taxable person not established within the Community to a non-taxable person, the taxable person who facilitates the supply shall be deemed to have received and supplied those goods himself or herself.

• (2) Where a taxable person is deemed, by virtue of paragraph (a) or (b), as the case may be, of subsection (1), to have received and supplied goods, the dispatch or transport of the goods shall be ascribed to the supply made by that taxable person.

• (3) Where a taxable person is the deemed supplier of the goods concerned by virtue of paragraph (a) or (b), as the case may be, of subsection (1), such taxable person shall—

• (a) keep records of all transactions which are facilitated (within the meaning of subsection (1) through the use of the electronic interface and those records shall be sufficiently detailed, in accordance with Article 54c(1) of the Implementing Regulation, to enable the Member State in which the transactions are taxable to verify that the VAT return is correct,

• (b) make such records available, by electronic means and on request, to the Revenue Commissioners, and

• (c) make such records available, by electronic means and on request, to the relevant Member State in which the transactions are taxable.

• (4) A taxable person who facilitates (within the meaning of Article 54b of the Implementing Regulation) the supply of goods and services through the use of an electronic interface such as a marketplace, platform, portal or similar means to a non-taxable person within the Community in accordance with Title V of the VAT Directive where the taxable person is neither—

• (a) presumed to be acting in his or her own name for the supply of services under Article 9a of the Implementing Regulation, nor

• (b) deemed to have supplied the goods by virtue of paragraph (a) or (b), as the case may be, of subsection (1), shall—

• (i) keep records of all transactions which are facilitated (within the meaning aforesaid) through the use of the electronic interface and those records shall be sufficiently detailed, in accordance with Article 54c(2) of the Implementing Regulation, to enable the Member State in which the transactions are taxable to verify that the VAT return is correct,

• (ii) make such records available, by electronic means and on request, to the Revenue Commissioners,

• (iii) make such records available, by electronic means and on request, to the relevant Member State in which the transactions are taxable, and

• (iv) notwithstanding section 84, retain such records for each transaction until the expiry of a period of 10 years from 31 December of the year during which the transaction was carried out.]

91H. F261[Special arrangements for value-added tax on import

91H.—(1) In this section “special arrangements for value-added tax on import” means the arrangements provided for in this section for the payment of value-added tax on import by the person presenting the goods to customs on behalf of the person to whom the goods are destined.

• (2) Where—

• (a) goods are imported into the State in a consignment with an intrinsic value which does not exceed €150,

• (b) the goods referred to in paragraph (a) are not subject to duties of excise,

• (c) the arrangements set out in section 91I have not been used to pay the value-added tax due on importation, and

• (d) the dispatch or transport of the goods ends in the State,

the person presenting the goods to customs may pay the value-added tax on import due on behalf of the person to whom the goods are destined.

• (3) A person who wishes to apply the special arrangements for value-added tax on import shall—

• (a) be subject to the conditions applicable for the deferment of payment of customs duty in accordance with Regulation (EU) No. 952/2013¹³ of the European Parliament and of the Council, and

• (b) complete and submit to the Revenue Commissioners such application form as may be provided by the Revenue Commissioners for the purpose of the application of the special arrangements.

• (4) Where the person presenting the goods to customs decides to use the special arrangements for value-added tax on import—

• (a) the person for whom the goods are destined shall be liable for the payment of value-added tax, and

• (b) the person presenting the goods to customs shall—

• (i) collect the value-added tax due from the person for whom the goods are destined,

• (ii) take appropriate measures to ensure that the correct amount of value-added tax is paid by the person for whom the goods are destined, and

• (iii) pay the value-added tax collected to the Revenue Commissioners.

• (5) Where the person presenting the goods to customs uses the special arrangements for value-added tax on import, the value-added tax rate applicable to those goods is the value-added tax rate specified in section 46(1)(a).

• (6)
• (a) Subject to paragraph (b), the person presenting the goods to customs shall, not later than the 15th day of the month immediately following the month of importation of the goods concerned—

• (i) furnish by electronic means to the Revenue Commissioners a declaration in the form made available by the Commissioners for that purpose and prepared by the person concerned in accordance with, and containing such particulars as are specified in, subsection (7), in respect of value-added tax collected through the use of the special arrangements for value-added tax on import in the month of importation of the goods, and

• (ii) remit to the Revenue Commissioners, at the same time as so furnishing the declaration referred to in subparagraph (i) into a bank account designated by them and denominated in euro, the amount of value-added tax (if any) so collected.

• (b) Where the person presenting the goods to customs has not collected any value-added tax due on import through the use of the special arrangements for value-added tax on import during a month, he or she shall furnish a nil declaration to the Revenue Commissioners in respect of that month.

• (7) The declaration referred to in subsection (6) shall contain the following particulars for the relevant month:

• (a) the total value added tax collected during that month;

• (b) the master reference number (within the meaning of Article 1(22) of Commission Delegated Regulation (EU) 2015/2446 of 28 July 2015¹⁴) of declarations, where special arrangements for value-added tax on import have been applied, submitted for customs purposes where the value-added tax amount declared for customs purposes has been collected during the month;

• (c) the master reference number (within the meaning aforesaid) of declarations, where special arrangements for value-added tax on import have been applied, submitted for customs purposes where the value-added tax amount declared for customs purposes has not been collected during the month, and

• (d) the master reference number (within the meaning aforesaid) of—

• (i) relevant declarations submitted for customs purposes which have been invalidated, and

• (ii) the original corresponding declaration submitted for customs purposes.

• (8) A person using the special arrangements for value-added tax on import shall—

• (a) keep records of all transactions covered by those arrangements and those records shall be sufficiently detailed to verify that the value-added tax paid is correct,

• (b) make such records available, by electronic means and on request, to the Revenue Commissioners,

• (c) notwithstanding section 84, retain such records for each such transaction until the expiry of a period of 3 years from 31 December of the year during which the transaction took place.]

91I. F262[Import scheme - interpretation and general provisions

91I.—(1) In this section and sections 91J and 91K—

“intermediary” means a person established in the Community appointed by the taxable person making distance sales of goods imported from third territories or third countries as the person liable for the payment of the value-added tax and to fulfil the obligations laid down in the import scheme in the name and on behalf of the taxable person;

“Member State of consumption” means the Member State where the dispatch or transport of the goods to the customer ends;

“Member State of identification” means—

• (a) the Member State in which the taxable person has established his or her business,

• (b) if the taxable person has not established his or her business in the Community but has one or more fixed establishments therein, the Member State in which he or she has a fixed establishment and in which he or she chooses to be identified for the purposes of the import scheme,

• (c) the Member State in which the taxable person chooses to register for the purposes of the import scheme, where that taxable person is not established within the Community,

• (d) the Member State in which the intermediary has established his or her business, or

• (e) if the intermediary has not established his or her business in the Community but has one or more fixed establishments therein, the Member State in which he or she has a fixed establishment and in which he or she chooses to be identified for the purposes of the scheme;

“VAT return” means the statement containing the information necessary to establish the amount of EU value-added tax that has become chargeable in each Member State in respect of distance sales of goods imported from third territories or third countries during a month.

• (2) For the purposes of paragraphs (b) and (e) of the definition of “Member State of identification” in subsection (1), where the taxable person or the intermediary has more than one fixed establishment in the Community, he or she shall be bound by the decision to indicate the Member State of establishment for the calendar year concerned and the following two calendar years.

• (3) Sections 91J and 91K apply to distance sales of goods imported from third territories or third countries, except products subject to duties of excise, in consignments of an intrinsic value which does not exceed €150.

• (4) The following taxable persons are permitted to use the import scheme where they are making distance sales of goods imported from third territories or third countries:

• (a) any taxable person established in the Community;

• (b) any taxable person whether or not established in the Community who is represented by an intermediary established in the Community;

• (c) any taxable person established outside the Community in a state or territory with which the Union has concluded an agreement on mutual assistance similar in scope to Council Directive 2010/24/EU of 16 March 2010¹⁵ and Regulation (EU) 904/2010 of 7 October 2010¹⁶ and who is making distance sales of goods from that state or territory.

• (5) Where a taxable person makes use of the import scheme, it shall apply to all of that taxable person’s distance sales of goods imported from third territories or third countries.

• (6) Where a taxable person appoints an intermediary referred to in subsection (4)(b) for the purposes of the import scheme, the taxable person cannot appoint more than one intermediary at the same time.

• (7) Where value-added tax is declared on distance sales of goods imported from third territories or third countries under the import scheme, the goods shall be regarded as having been supplied at the time when the payment has been accepted and the value-added tax shall become chargeable at the time of that supply.]

91J. F263[Import scheme (where the State is Member State of identification)

91J.—(1) A taxable person, or intermediary acting on behalf of a taxable person, who is identified in the State for the purposes of the import scheme, shall notify the Revenue Commissioners by electronic means when he or she commences or ceases his or her activity under the import scheme, or changes that activity in such a way that he or she no longer meets the conditions necessary for use of the import scheme.

• (2) A taxable person, or where applicable, his or her intermediary, may not be registered in the State for the purposes of the import scheme if he or she—

• (a) is already identified in another Member State for the purposes of this scheme, or

• (b) is excluded from applying this scheme by Article 369r of the VAT Directive or Article 58 of the Implementing Regulation.

• (3) The Revenue Commissioners shall establish and maintain a register (in this section referred to as the “import scheme identification register”) of persons who are identified in the State for the purposes of the import scheme.

• (4) A taxable person who does not make use of an intermediary, shall provide the following information to the Revenue Commissioners before the person commences use of the import scheme:

• (a) his or her name and postal address;

• (b) his or her electronic addresses, including website addresses;

• (c) his or her value-added tax identification number or national tax number.

• (5) An intermediary shall provide the following information to the Revenue Commissioners before the intermediary commences use of the import scheme on behalf of a taxable person:

• (a) his or her name and postal address;

• (b) his or her electronic addresses, including website addresses;

• (c) his or her value-added tax identification number identification number.

• (6) An intermediary shall also provide the following information to the Revenue Commissioners in respect of each taxable person that he or she represents before such taxable person commences use of the import scheme:

• (a) the person’s name and postal address;

• (b) the person’s electronic addresses, including website addresses;

• (c) the person’s value-added tax identification number or national tax number;

• (d) the person’s identification number allocated in accordance with subsection (8)(b)(iii).

• (7) A taxable person or, where applicable, his or her intermediary, who registers for use of the import scheme in the State, shall notify the Revenue Commissioners of any changes in the information provided under subsection (4), (5) or (6), as the case may be.

• (8)
• (a) Where a taxable person has provided the information required under subsection (4) and the Revenue Commissioners are satisfied that the requirements for registration for the purposes of the import scheme are met, the Revenue Commissioners shall—

• (i) register the person in the import scheme identification register,

• (ii) allocate to that person an identification number for the purposes of the import scheme, and

• (iii) notify that person by electronic means of the identification number so allocated and the date from which registration takes effect.

• (b) Where an intermediary has provided the information required under subsections (5) and (6), and the Revenue Commissioners are satisfied that the requirements for registration for the purposes of the import scheme are met, the Revenue Commissioners shall—

• (i) register the intermediary in the import scheme identification register,

• (ii) allocate to the intermediary an identification number identifying the intermediary as an intermediary for the purpose of the import scheme,

• (iii) allocate to the intermediary an identification number in respect of each taxable person in respect of whom the intermediary is appointed, and

• (iv) notify the intermediary by electronic means of the identification numbers so allocated and the date from which the registration takes effect.

• (c) The identification number allocated under paragraph (a) or (b) shall be used only for the purpose of the import scheme.

• (9)
• (a) The Revenue Commissioners shall remove a taxable person not making use of an intermediary from the import scheme identification register where—

• (i) the taxable person notifies the Revenue Commissioners that he or she no longer makes distance sales of goods imported from third territories or third countries,

• (ii) the taxable person no longer meets the conditions necessary for use of the import scheme,

• (iii) the taxable person has, in accordance with Article 58b of the Implementing Regulation, persistently failed to comply with the rules relating to the import scheme, or

• (iv) it may otherwise be assumed by the Revenue Commissioners that the taxable person’s taxable activities of distance sales of goods imported from third territories or third countries have ceased.

• (b) The Revenue Commissioners shall remove an intermediary from the import scheme identification register where the intermediary—

• (i) has not acted as an intermediary on behalf of a taxable person making use of the import scheme for a period of 2 consecutive calendar quarters,

• (ii) no longer meets the conditions necessary for acting as an intermediary, or

• (iii) has, in accordance with Article 58b of the Implementing Regulation, persistently failed to comply with the rules relating to the import scheme.

• (c) The Revenue Commissioners shall remove a taxable person represented by an intermediary from the import scheme identification register where—

• (i) the intermediary notifies the Revenue Commissioners that the taxable person no longer makes distance sales of goods imported from third territories or third countries,

• (ii) the taxable person no longer meets the conditions necessary for use of the import scheme,

• (iii) the intermediary notifies the Revenue Commissioners that he or she no longer represents the taxable person,

• (iv) the taxable person has, in accordance with Article 58b of the Implementing Regulation, persistently failed to comply with the rules relating to the import scheme, or

• (v) it may otherwise be assumed by the Revenue Commissioners that the taxable activities of distance sales of goods imported from third territories or third countries of the taxable person have ceased.

• (10)
• (a) Where it appears requisite to them to do so for the protection of the revenue, the Revenue Commissioners may, in the case where the taxable person concerned is established outside the Community and no legal instrument relating to mutual assistance similar in scope to that provided for in Council Directive 2010/24/EU of 16 March 2010¹⁷ and Council Regulation (EU) 904/2010 of 7 October 2010¹⁸ exists with the country in which that taxable person is established, serve on an intermediary and the taxable person by whom the intermediary is appointed a notice in writing in accordance with paragraph (c).

• (b) An intermediary shall be jointly and severally liable with the taxable person by whom the intermediary is appointed for the tax due and payable on the taxable supplies of that taxable person under the import scheme and shall be liable to pay that tax as if it were tax due and payable by the intermediary.

• (c) A notice served under paragraph (a) shall—

• (i) specify the date from which the notice shall have effect,

• (ii) state that the intermediary shall, by virtue of this subsection, be jointly and severally liable with the taxable person specified in the notice for the payment of tax due and payable by that taxable person on the taxable supplies of that taxable person under the import scheme and shall be liable to pay that tax as if it were tax due and payable by the intermediary, and

• (iii) specify the taxable person with whom the intermediary is so jointly and severally liable.

• (11)
• (a) Subject to paragraph (b), a taxable person or his or her intermediary shall by the end of the month immediately following the end of the period covered by the VAT return—

• (i) furnish to the Revenue Commissioners a VAT return, by electronic means using such form as is made available by the Commissioners for the purposes of the import scheme and prepared in accordance with, and containing such particulars as are specified in, subsection (12), in respect of supplies under the import scheme made in the Community in that month, and

• (ii) remit to the Revenue Commissioners, at the same time as furnishing such VAT return, into a bank account designated by them and denominated in euro, the amount of EU value-added tax, if any, payable by that person in respect of that month in relation to—

• (I) distance sales of goods imported from third territories or third countries where the place of supply is the State determined in accordance with section 30, and

• (II) distance sales of goods imported from third territories or third countries where the place of supply is a Member State (other than the State) determined in accordance with the provisions implementing Article 33 of the VAT Directive.

• (b) Where a taxable person has not made any distance sales of goods imported from third territories or third countries during a month, he or she or his or her intermediary shall furnish a nil VAT return in respect of that month.

• (12) The VAT return referred to in subsection (11) shall be made in euro and shall contain—

• (a) the person’s identification number allocated under subsection (8),

• (b) for each Member State where EU value-added tax has become due in respect of distance sales of goods imported from third territories or third countries—

• (i) the total value, exclusive of EU value-added tax, of distance sales of goods imported from third territories or third countries made during the month,

• (ii) the amount of such value liable to EU value-added tax at the applicable rate or rates, and

• (iii) the amount of EU value-added tax corresponding to such value at the applicable rate or rates,

and

• (c) the total EU value-added tax due, if any.

• (13) Where supplies have been made using a currency other than the euro, the exchange rate to be used for the purpose of expressing the corresponding amount in euro in the VAT return shall be that published by the European Central Bank for the last day of the month to which the VAT return relates or, if there is no publication on that date, on the next date of publication.

• (14)
• (a) Without prejudice to the provisions of section 99, where corrections to a VAT return (“the initial return”) are required after it has been submitted, the corrections shall be included in a subsequent VAT return within 3 years from the date on which the initial return was required to be submitted in accordance with subsection (11).

• (b) Where a correction is included in a subsequent VAT return under paragraph (a), the subsequent VAT return shall identify—

• (i) the Member State of consumption to which the correction relates,

• (ii) the period for which the correction is made, and

• (iii) the amount of value-added tax for which a correction is required.

• (15) A taxable person shall not make any deduction of tax in the VAT return, or make any adjustment to the amounts therein, in relation to any value-added tax incurred by him or her in the Community.

• (16) Where, on the 10th day following the due date for submission of the VAT return in accordance with subsection (11)(a), the return has not been submitted, the Revenue Commissioners shall issue a reminder by electronic means to the taxable person or his or her intermediary.

• (17) Where a VAT return has been submitted but no payment or only partial payment has been made, the Revenue Commissioners shall issue a reminder by electronic means to the taxable person or his or her intermediary on the 10th day following the due date for payment of the EU value-added tax in accordance with subsection (11)(a).

• (18) A taxable person and where applicable his or her intermediary shall—

• (a) keep records of all transactions covered by the import scheme and those records shall be sufficiently detailed, in accordance with Article 63c(2) of the Implementing Regulation, to enable the Member State of consumption to verify that the VAT return is correct,

• (b) make such records available, by electronic means and on request, to the Revenue Commissioners,

• (c) make such records available, by electronic means and on request, to the relevant Member State of consumption, and

• (d) notwithstanding section 84, retain such records for each transaction until the expiry of a period of 10 years from 31 December of the year during which the transaction was carried out.]

91K. F264[Import scheme (where the State is Member State of consumption)

91K.—(1) A person who—

• (a) is registered in the import scheme identification register (within the meaning of section 91J), or

• (b) applies the special scheme for distance sales of goods imported from third territories or third countries under the provisions implementing that scheme in another Member State, where that other Member State is the Member State of identification, shall, in relation to goods supplied in the State under the import scheme, be an accountable person for the purposes of this Act and, in relation to those supplies, shall, for the purposes of this section, be referred to as a “scheme participant”.

• (2) Notwithstanding F265[subsection (3)(a) of section 65], a scheme participant shall, in relation to supplies covered by the import scheme, be regarded as having fulfilled his or her obligations as an accountable person under the said F265[subsection (3)] and shall not otherwise be obliged or entitled to be registered under that section for supplies covered by the import scheme.

• (3) A scheme participant shall furnish the VAT return required for a month under the provisions of the import scheme to the relevant authorities of the Member State of identification by the end of the month immediately following the end of the period covered by the return and, for the purposes of this Act, to the extent that the VAT return relates to goods supplied under the import scheme taxable in the State, the VAT return shall be—

• (a) treated, with any necessary modifications, as if it were a return required to be furnished in accordance with section 76, and

• (b) deemed to have been received by the Collector-General on the date it was received by the relevant authorities of the Member State of identification, and this Act shall apply to a scheme participant and have effect as if in section 76(1)—

• (i) “by the end of the month immediately following the end of the period covered by the return” were substituted for “within 9 days immediately after the 10th day of the month immediately following a taxable period”,

• (ii) “a month” were substituted for “a taxable period”, and

• (iii) in paragraphs (a)(i) and (b) “that month” were substituted for “that taxable period” in each place.

• (4) A scheme participant shall remit the tax payable in relation to a month under the provisions of the import scheme to the relevant authorities of the Member State of identification by the end of the month immediately following the end of the period covered by the return and, for the purposes of this Act, to the extent that the tax payable relates to goods supplied under the import scheme taxable in the State, the tax payable shall be—

• (a) treated as if it were tax payable in accordance with section 76, and

• (b) deemed to have been paid to the Collector-General on the date it was received by the relevant authorities of the Member State of identification, and this Act shall apply to a scheme participant and have effect as if in section 76(1)—

• (i) “by the end of the month immediately following the end of the period covered by the return” were substituted for “within 9 days immediately after the 10th day of the month immediately following a taxable period”,

• (ii) “a month” were substituted for “a taxable period”, and

• (iii) in paragraphs (a)(i) and (b) “that month” were substituted for “that taxable period” in each place.

• (5) Where supplies have been made using a currency other than the euro, the exchange rate to be used for the purpose of expressing the corresponding amount in euro in the VAT return shall be that published by the European Central Bank for the last day of the month to which the VAT return relates or, if there is no publication on that date, on the next date of publication.

• (6) Notwithstanding Chapter 1 of Part 8, a scheme participant—

• (a) shall not, in computing the amount of tax payable by him or her in respect of goods supplied under the import scheme taxable in the State, be entitled to deduct any tax borne or paid in relation to those supplies in the VAT return, but

• (b) shall—

• (i) where that scheme participant is established or has a fixed establishment in the Community, be entitled to claim a refund of such tax in accordance with, and using the rules applicable to, section 101, notwithstanding subsection (14) of that section, or

• (ii) where that scheme participant is not established and does not have a fixed establishment in the Community, be entitled to claim a refund of such tax in accordance with, and using the rules applicable to, Council Directive No. 86/560/EEC of 17 November 1986¹⁹, notwithstanding Articles 2(2) and (3) and 4(2) of that Directive, or

• (iii) where that scheme participant is an accountable person other than in relation to distance sales of goods imported from third territories or third countries, subject to Chapter 1 of Part 8, be entitled to deduct the tax borne or paid in the return which he or she is obliged to submit in accordance with Chapter 3 of Part 9.

• (7) Notwithstanding section 84, a scheme participant who makes distance sales of goods imported from third territories or third countries to the State which are taxable in the State shall be bound by the requirements of section 91J(18)(a), (b) and (d) in relation to such sales and retain such records until the expiry of a period of 10 years from 31 December of the year during which the transaction was carried out.]

F266[Chapter 3 Suspension arrangements for alcohol products]

92. Suspension arrangements for alcohol products. [VATA s. 3B]

92.—(1) In this section—

“alcohol products” has the meaning assigned to it by section 73(1) of the Finance Act 2003;

“suspension arrangement” means an arrangement under which excisable products are produced, processed, held or moved, excise duty being suspended.

• (2) Where alcohol products are supplied while being held under a suspension arrangement, then—

• (a) any such supply effected while the products are held under that arrangement (other than the last such supply in the State) shall be deemed not to be a supply for the purposes of this Act other than for the purposes of Chapter 1 of Part 8, and

• (b) any previous—

• (i) intra-Community acquisition, or

• (ii) importation,

of such products shall be disregarded for the purposes of this Act.

(3)(a) Subject to paragraph (b), where tax is chargeable on a supply referred to in subsection (2), then, notwithstanding section 74(1), the tax on that supply shall be due at the same time as the duty of excise on the products is due.

• (b) Paragraph (a) shall not apply to a supply of the kind referred to in paragraph 1(1) or (3), 3(1) or 7(6) of Schedule 2.

• (4) Where (other than in the circumstances set out in section 11(2)), an accountable person makes an intra-Community acquisition of alcohol products and by virtue of that acquisition, and in accordance with Chapters 1 and 2 of Part 2 of the Finance Act 2001, and any other enactment which is to be construed together with those Chapters, the duty of excise on those products is payable in the State, then, notwithstanding section 75, the tax on that intra-Community acquisition shall be due at the same time as the duty of excise on the products is due.

• (5) Where tax is chargeable on the importation of alcohol products, which are then placed under a suspension arrangement then, notwithstanding section 53(3), the tax on that importation shall be due at the same time as the duty of excise on the products is due.

• (6) Notwithstanding sections 37(1) and (2) and 53(1), where subsection (3), (4) or (5) applies, the amount on which tax is chargeable shall include the amount of the duty of excise chargeable on the products on their release for consumption in the State.

• (7) Notwithstanding any other provision to the contrary in this Act, where subsection (3), (4) or (5) applies, then—

• (a) the tax shall be payable at the same time as the duty of excise is payable on the products,

• (b) the provisions of the statutes which relate to the duties of excise and the management thereof and of any instrument relating to duties of excise made under statute, shall, with any necessary modifications and exceptions as may be specified in regulations, apply to such tax as if it were a duty of excise, and

• (c) the person by whom the tax is payable shall complete such form as is provided for the purposes of this subsection by the Revenue Commissioners.

F267[CHAPTER 4 Deposit Return Scheme]

92A. F267[Deposit Return Scheme

92A.—(1) In this Chapter—

“approved body”has the same meaning as in the Regulations of 2021;

“deposit” shall be construed in accordance with the Regulations of 2021;

“deposit return scheme” means a deposit return scheme established pursuant to Regulation 4 of the Regulations of 2021 and references to “scheme” shall be construed accordingly;

“in-scope bottle”, “in-scope container” and “in-scope product” have the same meaning, respectively, as in the Regulations of 2021;

“operator”, in relation to the deposit return scheme, means an approved body that is operating the scheme;

“Regulations of 2021” means the Separate Collection (Deposit Return Scheme) Regulations 2021 (S.I. No. 599 of 2021);

“tax due and payable” means the amount of tax, calculated in accordance with regulations made under section 120(10)(l), that is due and payable in respect of a deposit.

• (2) For the purposes of giving effect to Article 92 of the VAT Directive, where—

• (a) a supply is made of an in-scope product, and

• (b) a deposit is chargeable in accordance with the Regulations of 2021 in relation to the supply referred to in paragraph (a),

then, the taxable amount referable to the deposit shall be deemed to be reduced to nil.

• (3) Notwithstanding subsection (2) and for the purposes of giving effect to Article 92 of the VAT Directive, where—

• (a) a supply is made of an in-scope product,

• (b) a deposit is chargeable in accordance with the Regulations of 2021 in relation to the supply referred to in paragraph (a), and

• (c) the in-scope bottle or in-scope container concerned has not been returned in accordance with the Regulations of 2021,

then—

• (i) the taxable amount referable to the deposit shall be the amount of that deposit, and

• (ii) the operator shall be deemed to be the accountable person in respect of the tax due and payable and shall comply with the provisions of Chapter 3 of Part 9 in relation to that tax.]

F268[CHAPTER 5 Cross-border special scheme for small enterprises

92B. F269[Definitions

92B. —In this Chapter —

“annual turnover“means the total consideration (other than consideration from disposals of tangible or intangible capital assets), exclusive of tax, from—

• (a) supplies of goods and services, in so far as those supplies would be chargeable to tax if supplied by a taxable person who is not exempt from tax, and

• (b) supplies of immovable goods, services specified in paragraphs 6 and 7 of Schedule 1 and, insurance and reinsurance services, unless those supplies are transactions which are incidental to the taxable person’s supplies and activities;

“Member State annual turnover threshold“ means a threshold set by a Member State for the purposes of the application of the SME exemption scheme in that Member State;

“Member State of establishment“, in relation to a taxable person, means the Member State in which the person has established that person’s business;

“Member State of exemption“, in relation to a taxable person, means a Member State in which the person is not established and where that person avails of the SME exemption scheme as it applies in that Member State;

“SME exemption scheme“ means the special scheme for small enterprises set out in Section 2 of Chapter I of Title XII of the VAT Directive;

“SME exemption scheme number“ means the identification number ending with the suffix ‘EX’ that has been assigned to a taxable person, by the competent authority of the Member State of establishment, for the purpose of availing of the SME exemption scheme;

“Union annual turnover“, in relation to a taxable person, means the annual turnover of the person in the territory of the Community during a calendar year;

“Union threshold“ means €100,000.]

92C. F270[Special scheme for small enterprises where the State is the Member State of establishment

92C. —(1) A taxable person—

• (a) who has established his or her business in the State,

• (b) who makes, or intends to make, supplies of goods or services in one or more than one Member State (in this section referred to as a “relevant Member State”), in the course of or furtherance of business,

• (c) whose Union annual turnover, in the current calendar year and the immediately preceding calendar year, does not exceed the Union threshold,

• (d) whose annual turnover in the relevant Member State, in the current calendar year and the immediately preceding calendar year, does not exceed the Member State annual turnover threshold for that Member State, and

• (e) who has not been assigned an SME exemption scheme number in another Member State,

may avail of the SME exemption scheme in that relevant Member State.

• (2)
• (a) A taxable person to whom subsection (1) applies shall notify the Revenue Commissioners of his or her intention to avail of the SME exemption scheme in a relevant Member State before the person commences availing of the scheme in that Member State.

• (b) A notification under paragraph (a) shall be made by electronic means, using such form as is made available by the Revenue Commissioners for the purpose (in this section known as the “prior notification form”), and shall include the following information:

• (i) the name, taxable activity, legal form, and address of the taxable person,

• (ii) the relevant Member State or Member States in which the taxable person intends to avail of the SME exemption scheme,

• (iii) the annual turnover of the taxable person, denominated in euro, in the State, and in each other Member State, in respect of the year in which the notification is made and the immediately preceding year.

• (3)
• (a) The Revenue Commissioners shall establish and maintain a register (in this section referred to as the “SME exemption scheme register”) of—

• (i) taxable persons established in the State in respect of whom the Revenue Commissioners are satisfied they meet the requirements to avail of the SME exemption scheme in one or more than one Member State of exemption (in this section referred to as “SME identified persons”), and

• (ii) in respect of each SME identified person, the Member State or Member States of exemption (in this section referred to as the “registered Member State of exemption”).

• (b) The Revenue Commissioners shall assign to each SME identified person an SME exemption scheme number ending with the suffix ‘EX’.

• (4)
• (a) Where a taxable person notifies the Revenue Commissioners of the person’s intention to avail of the SME exemption scheme in accordance with subsection (2), and the Revenue Commissioners are satisfied that the person meets the requirements to avail of the SME exemption scheme in one or more than one Member State of exemption, the Revenue Commissioners shall, within the period referred to in paragraph (b)—

• (i) register the person in the SME exemption scheme register under subsection (3)(a), and

• (ii) notify the person of the SME exemption scheme number assigned to that person under subsection (3)(b).

• (b) The period referred to in paragraph (a) is 35 working days or such further period as shall be notified to the taxable person by the Revenue Commissioners where additional time is required in order to carry out checks to prevent tax evasion or avoidance.

• (5) An SME identified person who has been assigned an SME exemption scheme number may avail of the SME exemption scheme in a registered Member State of exemption—

• (a) in the case of a Member State of exemption which has been notified to the Revenue Commissioners under subsection (2), from the date the person is notified of the SME exemption scheme number under subsection (4)(a)(ii), or

• (b) in the case of a Member State of exemption which has been notified to the Revenue Commissioners under subsection (6), from the date the person receives the confirmation referred to in subsection (7).

• (6)
• (a) An SME identified person shall notify the Revenue Commissioners, in advance—

• (i) of any changes to the information previously notified to the Revenue Commissioners undersubsection (2), or under this subparagraph,

• (ii) where the person no longer wishes to avail of the SME exemption scheme in a registered Member State of exemption, or

• (iii) where the person intends to change, or cease, his or her taxable activity to the extent that the person no longer satisfies the requirements to avail of the SME exemption scheme.

• (b) A notification under paragraph (a) shall be made by electronic means, in such form as is made available by the Revenue Commissioners for that purpose (in this section referred to as an “updated notification form”), and shall include the SME exemption scheme number assigned to the taxable person under subsection (3)(b).

• (c) A notification under paragraph (a)(i) or (iii) shall not be required in respect of any information to which subsection (9)(a)(ii) applies.

• (7)
• (a) An SME identified person shall notify the Revenue Commissioners under subsection (6) before availing of the SME exemption scheme in a Member State other than a registered Member State of exemption (in this paragraph referred to as a ‘new Member State of exemption’) and the Revenue Commissioners shall, where they are satisfied that the person is a person to whom subsection (1) applies, confirm to that person, within the period referred to in paragraph (b), that the person may avail of the SME exemption scheme in that new Member State of exemption.

• (b) The period referred to in paragraph (a) is 35 working days, or such further period as shall be notified to the taxable person by the Revenue Commissioners where additional time is required in order to carry out checks to prevent tax evasion or avoidance.

• (8) Where an SME identified person notifies the Revenue Commissioners, in accordance with subsection (6)(a)(ii) that the person no longer wishes to avail of the SME exemption scheme in a Member State of exemption, that person shall cease to avail of the scheme—

• (a) in a case where the updated notification form is received by the Revenue Commissioners during the last month of a calendar quarter, from the first day of the second month of the next calendar quarter, or

• (b) in all other cases, from the first day of the next calendar quarter following the calendar quarter in which the Revenue Commissioners receive the updated notification form.

• (9)
• (a) An SME identified person shall, within one month following the end of each calendar quarter, furnish to the Revenue Commissioners, by electronic means using such form as is made available by the Revenue Commissioners for the purpose, a report (in this subsection referred to as the “quarterly report”) containing the following particulars:

• (i) the SME scheme exemption number assigned to the taxable person under subsection (3)(b);

• (ii) the annual turnover of that taxable person in each Member State, or a nil return if no supplies have been made in a Member State, during that calendar quarter.

• (b) For the purposes of paragraph (a)(ii), where a registered Member State of exemption applies different Member State annual turnover thresholds to different categories of taxable activity, the SME identified person shall specify, in the quarterly report, the person’s annual turnover in respect of each category of taxable activity.

• (c) Where supplies have been made by an SME identified person using a currency other than the euro, the exchange rate to be used for the purpose of expressing the corresponding amount in euro on the quarterly report shall be that published by the European Central Bank on the first day of the calendar year to which the report relates or, if there is no publication on that date, on the next date of publication.

• (10)
• (a) Where, during a calendar year, the annual turnover of an SME identified person exceeds the Union threshold, the person shall, within 15 working days of the date on which the threshold was exceeded—

• (i) notify the Revenue Commissioners under subsection (6) that the threshold was exceeded, and

• (ii) furnish a report to the Revenue Commissioners for the period from the beginning of the calendar quarter in which the threshold was exceeded to the date on which the threshold was exceeded.

• (b) Subsection (9) shall, with all necessary modifications, apply to a report under paragraph (a) as it applies to a report under that subsection.

• (c) The Revenue Commissioners shall cancel the SME exemption scheme number which has been assigned to an SME identified person under subsection (3)(b) where the Revenue Commissioners have been notified under paragraph (a) that the annual turnover of the person exceeds the Union threshold.

• (11) The Revenue Commissioners shall amend the SME exemption scheme register, in respect of an SME identified person, as appropriate, where—

• (a) a Member State of exemption notifies the Revenue Commissioners that the person is not eligible for the SME exemption scheme, or the SME exemption scheme has ceased to apply, in that Member State, or

• (b) the person notifies to the Revenue Commissioners of any of the matters referred to in subsection (6)(a)(i) to (iii).]

92D. F271[Special scheme for small enterprises not established in the State where the State is the Member State of exemption

92D.—(1) Section 6(3)(b) shall not apply to a taxable person —

• (a) who is established in the Community and not established in the State,

• (b) who makes, or intends to make, supplies of taxable goods and services in the course or furtherance of the person’s business in the State,

• (c) who has notified the competent authorities in that person’s Member State of establishment of the person’s intention to avail of the SME exemption scheme in the State and has received confirmation from that competent authority that that person may avail of the scheme in the State,

• (d) who has been provided with an SME exemption number by the competent authority of that person’s Member State of establishment as a result of a notification referred to in paragraph (c), and

• (e) whose annual turnover does not exceed the Union threshold in the year in which the notification referred to in paragraph (c) was made, or in the year preceding that year.

• (2) Notwithstanding section 6(3), a person established in another Member State who engages in the supply, within the State, of taxable goods and services and does not avail of SME exemption scheme shall be deemed to have elected under section 6(1) to be an accountable person for the purpose of this Act.]

PART 11 Immovable Goods

93. Supply of immovable goods (old rules). [VATA s. 4(1), (9) and (10) and s. 4 (11) (in part)]

93.—(1)(a) In this section—

• (i) “interest”, in relation to immovable goods—

• (I) subject to clause (II), means an estate or interest in those goods which, when it was created, was for a period of at least 10 years or, if it was for a period of less than 10 years, its terms contained an option for the person in whose favour the interest was created to extend it to a period of at least 10 years,

• (II) does not include a mortgage,

• (ii) a reference to the disposal of an interest includes a reference to the creation of an interest, and

• (iii) an interval of the type referred to in section 4(2A) of the repealed enactment shall be deemed to be an interest for the purposes of this section.

• (b) Where an interest is created and, at the date of its creation, its terms contain one or more options for the person in whose favour the interest was so created to extend the interest, then that interest shall be deemed to be for the period from the date of creation of that interest to the date that that interest would expire if those options were so exercised.

• (c) This section applies to immovable goods—

• (i) which have been developed by or on behalf of the person supplying them, or

• (ii) in respect of which the person supplying them was, or would, but for the operation of section 20(2)(c), have been at any time entitled to claim a deduction under Chapter 1 of Part 8 for any tax borne or paid in relation to a supply or development of them.

(2)(a)(i) Subject to subparagraph (ii), where an interest in immovable goods was created prior to 1 July 2008 in such circumstances that a reversion on that interest (in this subsection referred to as a “reversionary interest”) was created and retained, then any subsequent disposal to another person of the reversionary interest or of an interest derived entirely from that reversionary interest shall be deemed to be a supply of immovable goods to which tax is not charged if, since the date the first-mentioned interest was created, those goods have not been developed by, on behalf of, or to the benefit of, the person making such subsequent disposal.

• (ii) This subsection shall not be construed as applying to a disposal of an interest which includes an interval.

• (b) For the purposes of this subsection, the Revenue Commissioners may make regulations specifying the circumstances or conditions under which development work on immovable goods is not treated as being on behalf of, or to the benefit of, a person.

(3)(a) For the purposes of this subsection—

“landlord” has the meaning assigned to it by paragraph (b);

“post-letting expenses”, in relation to an interest in immovable goods—

• (i) subject to subparagraph (ii), means expenses which the landlord incurs—

• (I) in carrying out services which the landlord is obliged to carry out under the terms and conditions of the written contract entered into on the disposal of the interest which was chargeable to tax (other than transactions in relation to which the obligation to perform is not reflected in the consideration on which tax was charged on the disposal of that interest),

• (II) which directly relate to the collection of rent arising under the contract referred to in clause (I),

• (III) which directly relate to a review of rent where the terms and conditions of the contract referred to in clause (I) provide for such a review, or

• (IV) which directly relate to the exercise of an option to extend the interest or to exercise a break-clause in relation to that interest where the terms and conditions of the contract referred to in clause (I) provide for such an option or such a break-clause,

• (ii) do not include any expenses relating to goods or services of the type specified in section 60(2).

• (b) Where—

• (i) an interest in immovable goods was disposed of prior to 1 July 2008,

• (ii) that disposal was chargeable to tax, and

• (iii) the person who acquired that interest is obliged to pay rent to another person (in this subsection referred to as the “landlord”) under the terms and conditions laid down in respect of that interest,

then the landlord—

• (I) shall, notwithstanding Part 2, be deemed not to be an accountable person in respect of transactions in relation to those immovable goods other than—

• (A) supplies of those immovable goods on which tax was chargeable in accordance with section 4 of the repealed enactment,

• (B) supplies of other goods or services effected for consideration by the landlord, or

• (C) post-letting expenses in respect of that interest,

• (II) shall not be entitled to deduct tax in respect of transactions in relation to those immovable goods other than—

• (A) supplies of those immovable goods on which tax was chargeable in accordance with section 4 (other than subsection (4) of that section) of the repealed enactment,

• (B) supplies of other goods or services effected for consideration by the landlord, or

• (C) post-letting expenses in respect of that interest,

• (III) shall be deemed, where the landlord is not the person who made the disposal of the interest, to be an accountable person in respect of post-letting expenses in relation to that interest, and

• (IV) shall, in relation to those post-letting expenses, be entitled to deduct tax, in accordance with Chapter 1 of Part 8, as if those post-letting expenses were for the purposes of the landlord’s taxable supplies.

94. Supplies of immovable goods (new rules). [VATA s. 4B]

94.—(1) In this section—

“completed”, in respect of immovable goods, means that the development of those goods has reached the state, apart from only such finishing or fitting work that would normally be carried out by or on behalf of the person who will use them, where the goods can effectively be used for the purposes for which the goods were designed, and the utility services required for those purposes are connected to the goods;

“occupied”, in respect of immovable goods, means—

• (a) occupied and fully in use following completion, where that use is one for which planning permission for the development of those goods was granted, and

• (b) where those goods are let, occupied and fully in such use by the tenant.

• (2) Subject to F272[subsections (3), (5) and (8)] and section 95(7)(a), tax is not chargeable on the supply of immovable goods—

• (a) that have not been developed within 20 years prior to that supply,

• (b) being completed immovable goods, the most recent completion of which occurred more than 5 years prior to that supply, and those goods have not been developed within that 5 year period,

• (c) being completed immovable goods that have not been developed since the most recent completion of those goods, where that supply—

• (i) occurs after the immovable goods have been occupied for an aggregate of at least 24 months following the most recent completion of those goods, and

• (ii) takes place after a previous supply of those goods on which tax was chargeable and that previous supply—

• (I) took place after the most recent completion of those goods, and

• (II) was a transaction between persons who were not connected within the meaning of section 97,

• (d) being a building that was completed more than 5 years prior to that supply and on which development was carried out in the 5 years prior to that supply where—

• (i) such development did not and was not intended to adapt the building for a materially altered use, and

• (ii) the cost of such development did not exceed 25 per cent of the consideration for that supply,

or

• (e) being a building that was completed within the 5 years prior to that supply where—

• (i) the building had been occupied for an aggregate of at least 24 months following that completion,

• (ii) that supply takes place after a previous supply of the building on which tax was chargeable and that previous supply—

• (I) took place after that completion of the building, and

• (II) was a transaction between persons who were not connected within the meaning of section 97,

and

• (iii) if any development of that building occurred after that completion—

• (I) such development did not and was not intended to adapt the building for a materially altered use, and

• (II) the cost of such development did not exceed 25 per cent of the consideration for that supply.

• (3) Where a person supplies immovable goods to another person and in connection with that supply a taxable person enters into an agreement with that other person or with a person connected with that other person to carry out a development in relation to those immovable goods, then—

• (a) the person who supplies the goods shall, in relation to that supply, be deemed to be a taxable person,

• (b) the supply of the goods shall be deemed to be a supply to which section 3 applies, and

• (c) subsection (2) does not apply to that supply.

• (4) Section 6(1) and (2) does not apply in relation to a person who makes a supply of immovable goods.

• (5) F272[Where a taxable person] who carries on a business in the State supplies immovable goods to another taxable person who carries on a business in the State in circumstances where that supply would otherwise be exempted because of subsection (2), or section 95(3) or (7)(b), then, notwithstanding those provisions, tax is chargeable on that supply, but only if the supplier and the taxable person to whom the supply is made have, no later than the 15th day of the month after the month during which the supply occurred, entered into an agreement in writing to opt to have tax chargeable on that supply (in this Act referred to as a “joint option for taxation”).

• (6) Where a joint option for taxation is exercised in accordance with subsection (5), then—

• (a) the person to whom the supply is made shall, in relation to that supply, be an accountable person and shall be liable to pay the tax chargeable on that supply as if that person supplied those goods, and

• (b) the person who made the supply shall not be accountable for or liable to pay such tax.

(7)(a) In this subsection—

“owner” means the accountable person referred to in section 22(3);

“purchaser” means the person to whom the immovable goods that are referred to in paragraph (b) are supplied;

“vendor” means the person referred to in section 22(3), not being the accountable person referred to in that section, who disposes of the immovable goods that are referred to in paragraph (b).

• (b) Where a supply of immovable goods is a supply to which section 22(3) applies and that supply would otherwise be exempted because of subsection (2), or section 95(3) or (7)(b), then, notwithstanding those provisions, tax is chargeable on that supply where—

• (i) the purchaser is a taxable person, and

• (ii) the vendor and the purchaser have, no later than the 15th day of the month after the month during which the supply occurred, entered into an agreement in writing to opt to have tax chargeable on that supply.

• (c) Where paragraph (b) applies—

• (i) the purchaser shall, in relation to that supply, be an accountable person and shall be liable to pay the tax chargeable on that supply as if that purchaser supplied those goods,

• (ii) neither the vendor nor the owner shall be accountable for or liable to pay that tax,

and

• (iii) sections 65(4) and 76(2) shall not apply.

• (d) Paragraph (b) shall not apply where the purchaser is a person connected (within the meaning of section 97(3)) with either the vendor or the owner.

• (e) F273[…]

(8)(a) F274[…]

• (b) Where a taxable person supplies immovable goods to another person in circumstances where that supply would otherwise be exempt in accordance with subsection (2), tax shall, notwithstanding that subsection, be chargeable on that supply where—

• (i) the immovable goods are buildings designed as or capable of being used as a dwelling,

• (ii) the person who makes that supply is a person who developed the immovable goods in the course of a business of developing immovable goods or a person connected with that person within the meaning of section 97(3), and

• (iii) the person who developed those immovable goods was entitled to a deduction under Chapter 1 of Part 8 for tax chargeable to that person in respect of that person’s acquisition or development of those immovable goods.

• (c) In the case of a building to which this subsection would apply if the building were supplied by the taxable person at any time during the capital goods scheme adjustment period for that building—

• (i) section 64(4) and (5) shall not apply, and

• (ii) notwithstanding section 64(2), the proportion of total tax incurred that is deductible by that person shall be treated as the initial interval proportion of deductible use.

• (d) F274[…]

• (9) F274[…]

95. Transitional measures for supplies of immovable goods. [VATA s. 4(3)(ab) (in part) and (8) (in part) and s. 4C]

95.—(1) This section applies to—

• (a) immovable goods which are acquired or developed by a taxable person prior to 1 July 2008, being completed immovable goods before 1 July 2008, and have not been disposed of by the taxable person prior to that date, until such time as those goods have been disposed of by that taxable person on or after that date, F275[…]

• (b) an interest in immovable goods within the meaning of section 93 (other than a freehold interest or a freehold equivalent interest) created by a taxable person prior to 1 July 2008 and held by a taxable person on 1 July 2008 and the reversionary interest (within the meaning of section 93(2)) on that interest until that interest is surrendered after F276[after 1 July 2008, and]

• F277[(c) immovable goods being residential property or burial grounds which are acquired or developed by a public body prior to 1 July 2010, being completed immovable goods before 1 July 2010, and have not been disposed of by that public body prior to that date, until such time as those goods have been disposed of by that public body on or after that date. ]

• (2) Where an interest to which subsection (1)(b) applies is surrendered, then, for the purposes of the application of Chapter 2 of Part 8 in respect of the immovable goods concerned—

• (a) the total tax incurred shall include the amount of tax chargeable on the surrender in accordance with subsection (8) and shall not include tax incurred prior to the creation of the surrendered interest, and

• (b) the adjustment period shall consist of the number of intervals specified in subsection (12)(c)(iv) and the initial interval shall begin on the date of that surrender.

• (3) In the case of a supply of immovable goods to which subsection (1)(a) applies, being completed immovable goods within the meaning of section 94—

• (a) where the person supplying those goods had no right to deduct under section 12 of the repealed enactment in relation to the tax chargeable on the acquisition or development of those goods prior to 1 July 2008, and

• (b) if any subsequent development of those immovable goods occurs on or after 1 July 2008—

• (i) that development does not and is not intended to adapt the immovable goods for a materially altered use, and

• (ii) the cost of that development does not exceed 25 per cent of the consideration for that supply,

then, subject to section 94(3), that supply is not chargeable to tax but a joint option for taxation may be exercised in respect of that supply in accordance with section 94(5) and that tax is payable in accordance with section 94(6).

(4)(a) Where a person referred to in subsection (1)—

• (i) acquired, developed or has an interest in immovable goods to which this section applies,