Finance Act 2010

98. Amendment of section 102 (penalties for certain mineral oil tax offences) of Finance Act 1999.

98.— Section 102 of the Finance Act 1999 is amended—

• (a) in subsection (4)(b) by substituting “not exceeding €126,970” for “of €12,695” (inserted by the Finance Act 2001), and

• (b) by substituting the following for subsection (8):

• “(8) Section 13 of the Criminal Procedure Act 1967 shall apply in relation to an offence under this section as if, in place of the penalties specified in subsection (3) of that section, there were specified in that subsection the penalties provided for by subsection (4)(a) of this section, and the reference in subsection (2)(a) of section 13 of the Criminal Procedure Act 1967 to the penalties provided for in subsection (3) of that section shall be construed and apply accordingly.”.

99. Amendment of section 119 (penalties for certain excise offences) of Finance Act 2001.

99.— Section 119 of the Finance Act 2001 is amended—

• (a) in subsection (3) by substituting the following for paragraph (b):

• “(b) on conviction on indictment, to a fine not exceeding—

  • (i) €126,970, or

  • (ii) where the value of the excisable products concerned, including any duty or tax chargeable thereon, is greater than €250,000, three times the value of those products,

  or, at the discretion of the court, to imprisonment for a term not exceeding 5 years or to both the fine and the imprisonment.”,

and

• (b) by inserting the following after subsection (3):

• “(4) Section 13 of the Criminal Procedure Act 1967 shall apply in relation to an offence under this section as if, in place of the penalties specified in subsection (3) of that section, there were specified in that subsection the penalties provided for by subsection (3)(a) of this section, and the reference in subsection (2)(a) of section 13 of the Criminal Procedure Act 1967 to the penalties provided for in subsection (3) of that section shall be construed and apply accordingly.”.

100. Amendment of section 79 (penalties for certain alcohol products tax offences) of Finance Act 2003.

100.— Section 79 of the Finance Act 2003 (as amended by section 62 of the Finance Act 2005) is amended—

• (a) in subsection (7) by substituting “subsection (1) or (3)” for “subsection (1), (2) or (3)”,

• (b) in subsection (8) by substituting “subsection (2) or (5)” for “subsection (5)”,

• (c) in subsection (8)(b) by substituting “a fine not exceeding €126,970” for “a fine of €12,695”, and

• (d) by inserting the following after subsection (8):

• “(8A) Section 13 of the Criminal Procedure Act 1967 shall apply in relation to an offence under this section as if, in place of the penalties specified in subsection (3) of that section, there were specified in that subsection the penalties provided for by subsection (8)(a) of this section, and the reference in subsection (2)(a) of section 13 of the Criminal Procedure Act 1967 to the penalties provided for in subsection (3) of that section shall be construed and apply accordingly.”.

101. Amendment of section 78 (penalties for certain tobacco products tax offences) of Finance Act 2005.

101.— Section 78 of the Finance Act 2005 is amended—

• (a) in subsection (5)(b) by substituting “a fine not exceeding €126,970” for “a fine not exceeding €12,695”, and

• (b) by inserting the following after subsection (5):

• “(5A) Section 13 of the Criminal Procedure Act 1967 shall apply in relation to an offence under this section as if, in place of the penalties specified in subsection (3) of that section, there were specified in that subsection the penalties provided for by subsection (5)(a) of this section, and the reference in subsection (2)(a) of section 13 of the Criminal Procedure Act 1967 to the penalties provided for in subsection (3) of that section shall be construed and apply accordingly.”.

102. Amendment of section 130 (interpretation) of Finance Act 1992.

102.— (1) Section 130 of the Finance Act 1992 is amended—

• (a) by substituting the following for the definition of “ambulance”:

“ ‘ ambulance ’ has the same meaning as in paragraph 5.3 of Annex II of Directive 2007/46/EC;”,

• (b) by substituting the following for the definition of “bus”:

“ ‘bus’ means a category M2 vehicle or a category M3 vehicle;”,

• (c) by substituting the following for the definition of “category A vehicle”:

“ ‘category A vehicle ’ means a category M1 vehicle;”,

• (d) by substituting the following for the definition of “category B vehicle”:

“ ‘category B vehicle’ means a category N1 vehicle or a motor caravan;”,

• (e) by substituting the following for the definition of “category C vehicle”:

“ ‘category C vehicle’ means a category M2 vehicle, a category M3 vehicle, a category N2 vehicle, a category N3 vehicle, a category T1 vehicle, a category T2 vehicle, a category T3 vehicle, a category T4 vehicle or a category T5 vehicle;”,

• (f) by inserting the following definitions after the definition of “category D vehicle”:

“ ‘category M1 vehicle’, ‘category M2 vehicle’, ‘category M3 vehicle’, ‘category N1 vehicle’, ‘category N2 vehicle’ and ‘category N3 vehicle’ have the same meanings as in Annex II of Directive 2007/46/EC;

‘category L1e vehicle’, ‘category L2e vehicle’, ‘category L3e vehicle’, ‘category L4e vehicle’, ‘category L5e vehicle’, ‘category L6e vehicle’ and ‘category L7e vehicle’ have the same meanings as in Directive 2002/24/EC;

‘category T1 vehicle’, ‘category T2 vehicle’, ‘category T3 vehicle’, ‘category T4 vehicle’ and ‘category T5 vehicle’ have the same meanings as in Annex II of Directive 2003/37/EC;”,

• (g) by inserting the following definition after the definition of “the Commissioners”:

“ ‘competent person’ means one or more than one individual or body appointed by the Commissioners under section 131;”,

• (h) by substituting the following for the definition of “conversion”:

“ ‘conversion’, in relation to a vehicle, means the modification of the vehicle in such manner that it no longer retains all of the characteristics of the vehicle category under which it is certified for type-approval purposes;”,

• (i) by inserting the following definitions after the definition of “deal”:

“ ‘Directive 2007/46/EC’ means Directive 2007/46/EC ²¹ of the European Parliament and of the Council of 5 September 2007 (as amended) establishing a framework for the approval of motor vehicles and their trailers, and of systems, components and separate technical units intended for such vehicles;

‘Directive 2002/24/EC’ means Directive 2002/24/EC ²² of the European Parliament and of the Council of 18 March 2002 (as amended) relating to the type-approval of two or three-wheel motor vehicles and repealing Council Directive 92/61/EEC;

‘ Directive 2003/37/EC ’ means Directive 2003/37/EC ²³ of the European Parliament and of the Council of 26 May 2003 (as amended) on type-approval of agricultural or forestry tractors, their trailers and interchangeable towed machinery, together with their systems, components and separate technical units and repealing Directive 74/150/EEC;”,

• (j) by substituting the following for the definition of “motor cycle”:

“ ‘motor cycle’ means a category L1e vehicle, a category L2e vehicle, a category L3e vehicle, a category L4e vehicle, a category L5e vehicle, a category L6e vehicle or a category L7e vehicle;”,

• (k) by substituting the following for the definition of “motor caravan”:

“ ‘motor caravan’ has the same meaning as in paragraph 5.1 of Annex II of Directive 2007/46/EC;”,

• (l) by inserting the following definition after the definition of “special purpose vehicle”:

“ ‘type-approval’ means the process of certification whereby a type of vehicle satisfies the relevant administrative provisions and technical requirements imposed by, or pursuant to, Directive 2007/46/EC, Directive 2002/24/EC and Directive 2003/37/EC, and references to ‘type-approved’ shall be construed accordingly;”,

• (m) in the definition of “vehicle” by substituting “vehicle;” for “vehicle.”, and

• (n) by inserting the following definition after the definition of “vehicle”:

“ ‘vehicle details’ means any data or information in relation to the registration of vehicles and their ownership which may be specified by the Commissioners for the purposes of this Chapter.”.

• (2) Subsection (1) (other than paragraphs (g), (m) and (n)) comes into operation on 1 January 2011.

103. Amendment of section 130B (delegation of certain powers of the Revenue Commissioners) of Finance Act 1992.

103.— Section 130B of the Finance Act 1992 is amended by substituting the following for subsection (1):

• “(1) For the purposes of this Chapter, and subject to the direction and control of the Commissioners, any power, function or duty conferred or imposed on them may, subject to subsection (2), be exercised or performed on their behalf by an officer of the Commissioners or by a competent person.”.

104. Amendment of section 131 (registration of vehicles by Revenue Commissioners) of Finance Act 1992.

104.— Section 131(1) of the Finance Act 1992 is amended by substituting the following for paragraph (ba):

• “(ba) In respect of a vehicle which is within any particular category of vehicle that is specified by the Commissioners for the purposes of this paragraph or is within any other class of vehicle that is specified by the Commissioners, the Commissioners may, as a condition of registration, require confirmation that such vehicle—

  • (i) is a mechanically propelled vehicle, and

  • (ii) complies with any matters specified by the Commissioners as they consider necessary for—

    • (I) the registration of the vehicle concerned,

    • (II) the proper operation of vehicle registration tax, and

    • (III) the collection of the appropriate amount of vehicle registration tax.

• (bb) Where in respect of a vehicle the Commissioners require confirmation for the purposes of paragraph (ba), they shall register the vehicle only on receipt by them of a declaration made by a competent person in such form as may be specified by the Commissioners that the vehicle—

  • (i) is a mechanically propelled vehicle, and

  • (ii) complies with any matters specified by the Commissioners for the purposes of paragraph (ba)(ii).

• (bc) The Commissioners may appoint in writing a competent person for all or any of the following purposes:

  • (i) for the purposes of paragraph (bb), to carry out a pre-registration examination of a vehicle to determine if the vehicle is a mechanically propelled vehicle and to confirm whether or not such vehicle complies with any matters specified by the Commissioners for the purposes of paragraph (ba)(ii);

  • (ii) in respect of each vehicle examined by a competent person for the purposes of this subsection, to—

    • (I) declare to the Commissioners in such form as may be specified by the Commissioners the vehicle details and the details of the person to whom it will be registered, and

    • (II) subject to section 136A(4), to pay the vehicle registration tax that is chargeable, leviable and payable in respect of the registration of the vehicle;

  • (iii) to carry out any other functions specified by the Commissioners as they consider necessary for—

    • (I) the registration of the vehicle concerned, and

    • (II) the proper operation of vehicle registration tax.

• (bd) A competent person appointed under paragraph (bc) shall comply with any instructions and directions given by the Commissioners to such person for the purposes of paragraphs (ba), (bb), (bc), (be) and (bf).

• (be) The Commissioners may, at any time for reasonable cause (which shall be stated to the competent person) and following such notice as is reasonable in the circumstances, revoke an appointment made under paragraph (bc).

• (bf) The fee to be charged by the competent person for the carrying out of functions referred to in paragraph (bc) shall be agreed with the Commissioners. Different fees may be so agreed in respect of different categories or other classes of vehicles. The fees so agreed shall be deducted from the vehicle registration tax to be paid under section 136A to the Commissioners by the competent person, but no other fees, charges or costs incurred by the person presenting the vehicle for registration shall be so deducted.”.

105. Amendment of section 132 (charge of excise duty) of Finance Act 1992.

105.— (1) Section 132(3) of the Finance Act 1992 is amended—

• (a) in paragraph (f)(iii) by substituting “output,” for “output.”, and

• (b) by inserting the following after paragraph (f):

• “(g) in case it is a vehicle whose category cannot be confirmed by reference to the relevant EC type-approval certificate or EC certificate of conformity, or any other documentation specified by the Commissioners for the purposes of confirming the categorisation of vehicles for the purposes of this Chapter which is produced in support of the declaration for registration, the vehicle shall be deemed to be a category M1 vehicle for vehicle registration tax purposes.”.

• (2) Subsection (1) comes into operation on 1 January 2011.

106. Amendment of section 135 (temporary exemption from registration) of Finance Act 1992.

106.— Section 135 of the Finance Act 1992 is amended by substituting the following for subsection (3):

• “(3) In respect of a vehicle to which subsection (2) relates, a declaration made by a competent person under section 131(1) shall be produced to the Commissioners in order that the vehicle may be registered.”.

107. Repayment of amounts of vehicle registration tax in respect of the registration of certain new vehicles.

107.— The Finance Act 1992 is amended by inserting the following after section 135B:

“135BA.— (1) In this section—

‘new vehicle’ means a category A vehicle that has not been registered or recorded under—

• (a) section 131 of this Act or section 6 of the Roads Act 1920, or

• (b) a system for maintaining a record of vehicles and their ownership established by or on behalf of the government of another state;

‘scrapped vehicle’ means a category A vehicle in respect of which a certificate of destruction has been issued in accordance with the Waste Management (End-of-Life Vehicles) Regulations 2006 (S.I. No. 282 of 2006) and references to ‘scrapped’ and ‘certificate of destruction’, in relation to such a vehicle, shall be construed accordingly.

• (2) The Commissioners may repay to a person an amount of the vehicle registration tax paid in respect of a new vehicle equal to the lesser of the amount of the tax which, apart from this section, would be payable in respect of that vehicle or €1,500, where—

  • (a) the new vehicle has a level of CO2 emissions of not more than 140g/km,

  • (b) the new vehicle is first registered during the period 1 January 2010 to 31 December 2010,

  • (c) the person becomes registered as the owner of the new vehicle at the time when it is first registered,

  • (d) a scrapped vehicle has been registered in the name of the registered owner of the new vehicle for a period of not less than 18 months immediately prior to the date of registration of the new vehicle,

  • (e) the scrapped vehicle is scrapped on or after 10 December 2009, and is scrapped within 60 days prior to, or 60 days after, the date of the first registration of the new vehicle, but in any case is scrapped no later than 31 December 2010,

  • (f) the scrapped vehicle was first registered or recorded under—

    • (i) section 131 of this Act or section 6 of the Roads Act 1920, or

    • (ii) a system for maintaining a record of vehicles and their ownership established by or on behalf of the government of another state,

    not less than 10 years prior to the date of issue of a certificate of destruction in respect of the vehicle,

  • (g) in accordance with the Road Traffic (National Car Test) Regulations 2003 (S.I. No. 405 of 2003)—

    • (i) a valid test certificate (within the meaning of those Regulations), or a test certificate that expired not more than 90 days prior to the date of issue of the certificate of destruction, issued in respect of the scrapped vehicle, or

    • (ii) a test certificate was refused in respect of the scrapped vehicle during the period of 6 months immediately prior to the date of issue of the certificate of destruction,

    and

  • (h) an approved policy of insurance referred to in section 56(1)(a) of the Road Traffic Act 1961 was issued to the person in respect of the scrapped vehicle and was in force during a total period of at least 12 months in the period of 18 months immediately prior to the date of issue of the certificate of destruction in respect of the scrapped vehicle, or the person was an exempted person within the meaning of section 60 (inserted by section 54 of the Road Traffic Act 1968) of that Act.

• (3) A claim for repayment of vehicle registration tax under this section shall be made in such manner and in such form as may be approved by the Commissioners for that purpose.

• (4) Where a claim for repayment of vehicle registration tax is made under this section in relation to a new vehicle, the following documents shall be retained by the claimant for a period of not less than 4 years from the date on which the new vehicle is first registered—

  • (a) the certificate of destruction in relation to the scrapped vehicle,

  • (b) the test certificate or evidence of refusal of a test certificate in relation to the scrapped vehicle, as referred to in subsection (2)(g),

  • (c) the certificate or certificates of insurance in relation to the scrapped vehicle, as referred to in subsection (2)(h), and

  • (d) a copy of the completed application form for the repayment of vehicle registration tax as submitted to the Commissioners for that purpose.

• (5) For the purposes of subsection (2)(c) and (h), any reference to ‘person’ may, in the application of those provisions, be construed by the Commissioners as a reference to the person concerned or to that person’s spouse.”.

108. Remission or repayment in respect of vehicle registration tax on certain plug-in hybrid electric vehicles, certain electric vehicles and certain electric motorcycles.

108.— (1) Chapter IV of Part II of the Finance Act 1992 is amended by substituting the following for section 135C:

“135C.— (1) In this section—

‘electric vehicle’ means a vehicle that derives its motive power exclusively from an electric motor;

‘ electric motorcycle ’ means a motorcycle that derives its motive power exclusively from an electric motor;

‘ plug-in hybrid electric vehicle ’ means a series production vehicle that derives its motive power from a combination of an electric motor and an internal combustion engine, where the electric motor derives its power from a battery that may be charged from the internal combustion engine and an alternating current (AC) electric mains supply and is capable of being driven on electric propulsion alone for a material part of its normal driving cycle.

• (2)

  • (a) Where a person first registers a category A vehicle or a category B vehicle during the period from 1 January 2011 to 31 December 2012 and the Commissioners are satisfied that the vehicle is a plug-in hybrid electric vehicle, then the Commissioners shall remit or repay to that person an amount equal to the lesser of—

    • (i) the vehicle registration tax which, apart from this subsection, would be payable in respect of the vehicle in accordance with paragraph (a) or (c) of section 132(3), or

    • (ii) the amount specified in the Table to this subsection which is referable to the vehicle having regard to its age.

  • (b) In this subsection ‘age’, in relation to a vehicle, means the time that has elapsed since the date on which the vehicle first entered into service.

  TABLE

  Age of vehicle	Maximum amount which may be remitted or repaid
  New vehicle, first registration Not a new vehicle but less than 2 years 2 years or over but less than 3 years 3 years or over but less than 4 years 4 years or over but less than 5 years 5 years or over but less than 6 years 6 years or over but less than 7 years 7 years or over but less than 8 years 8 years or over but less than 9 years 9 years or over but less than 10 years 10 years or over	€2,500 €2,250 €2,000 €1,750 €1,500 €1,250 €1,000 €750 €500 €250 Nil

• (3) A category A electric vehicle or a category B electric vehicle first registered during the period 1 January 2011 to 31 December 2012 is exempt from vehicle registration tax where the Commissioners are satisfied that such vehicle is a series production electric vehicle.

• (4) An electric motorcycle first registered during the period 1 January 2011 to 31 December 2012 is exempt from vehicle registration tax where the Commissioners are satisfied that such vehicle is a series production electric motorcycle.”.

• (2) This section comes into effect on 1 January 2011.

109. Authorisation of competent persons.

109.— The Finance Act 1992 is amended by inserting the following after section 136:

“136A.— (1) The Commissioners may authorise in writing one or more than one competent person to carry out, on their behalf, a specified function or functions relating to the proper operation of vehicle registration tax, subject to such conditions as the Commissioners think fit to impose.

• (2) The Commissioners may, at any time for reasonable cause (which shall be stated to the competent person) and following such notice as is reasonable in the circumstances, revoke an authorisation made under subsection (1).

• (3) Vehicle registration tax payable at the time of registration of vehicles examined by the competent person for the purposes of section 131(1) shall be paid to the Commissioners by the competent person not later than the 15th day of the month following that in which the vehicle was registered.

• (4) The amount of vehicle registration tax which, apart from this section, would be payable by the competent person in accordance with section 131, in respect of all vehicles examined by that person in any month which are registered in that month (in this section referred to as “the gross amount”), shall be reduced by an amount calculated in accordance with the following formula—

A — B

where—

A is the total fees payable by the Commissioners to a competent person in respect of the examination of those vehicles, and

B is the gross amount multiplied by a percentage equal to the European Inter Bank Offered Rate (EURIBOR) one month rate published on the last working day of the month in which the vehicles were registered minus 0.2.

Where B is greater than A, the amount of vehicle registration tax payable to the Commissioners by the competent person in respect of the vehicles in question shall be increased by the amount by which B exceeds A.”.

110. Amendment of section 141 (regulations) of Finance Act 1992.

110.— Section 141(2) of the Finance Act 1992 is amended by substituting the following for paragraph (w):

• “(w) make provision for the purposes of paragraphs (ba) to (bf) of section 131(1) and sections 135 and 136A, in respect of the carrying out of specified functions by competent persons relating to the registration of vehicles.”.

111. Return of motor insurance particulars.

111.— (1) The Finance Act 1992 is amended by inserting the following after section 142:

“142A.— (1) In this section—

‘policy of insurance’ means an approved policy of insurance referred to in section 56(1)(a) of the Road Traffic Act 1961;

‘unregistered vehicle’ means a vehicle that has not been registered in the State under section 131 of this Act or section 6 of the Roads Act 1920;

‘vehicle insurer’ has the same meaning as in section 58 of the Road Traffic Act 1961.

• (2) A vehicle insurer who issues a policy of insurance to a person for a period in excess of 42 days in relation to an unregistered vehicle shall, within one month of the date of issue of the policy of insurance, make a return to the Commissioners of the following particulars—

  • (a) the name and address of the person to whom the policy of insurance issued,

  • (b) the policy number,

  • (c) the commencement and cessation dates of the policy of insurance,

  • (d) the registration or identification marks assigned to the unregistered vehicle under a system for maintaining a record of vehicles and their ownership duly established by or on behalf of the government or other authority of the state (other than the State) or territory concerned, or where no such registration or identification mark has been assigned, the vehicle identification number,

  • (e) the country code for the state or territory concerned referred to in paragraph (d) as set out in the International Standard ISO 3166-1 (Codes for Representation of Names of Countries and their Subdivision) of the International Organisation for Standardisation, and

  • (f) the make, model, type and colour (if known) of the vehicle.

• (3) Where a return is required under subsection (2), then such return shall be made in such form as the Commissioners may require, including by electronic means, as appropriate.”.

• (2) Subsection (1) applies to policies of insurance (within the meaning of section 142A (inserted by subsection (1)) of the Finance Act 1992) issued on or after the date of the passing of this Act.

PART 4 Value-Added Tax

112. Interpretation (Part 4).

112.— In this Part “Principal Act” means the Value-Added Tax Act 1972.

113. Amendment of section 1 (interpretation) of Principal Act.

113.— Section 1 of the Principal Act is amended—

• (a) by inserting with effect from 1 January 2010 the following definition after the definition of “assignment”:

“ ‘auction scheme’ has the meaning assigned to it by section 10B;”,

• (b) by substituting the following definition for the definition of “local authority”:

“ ‘local authority’ has the meaning assigned to it by the Local Government Act 2001;”,

• (c) by inserting with effect from 1 July 2010 the following definition after the definition of “principal supply”:

“ ‘public body’ means—

• (i) a Department of State,

• (ii) a local authority,

• (iii) a body established by any enactment;”,

• (d) in paragraph (b) of the definition of “taxable dealer” by substituting with effect from 1 January 2010 “including a means of transport and agricultural machinery” for “other than a means of transport”, and

• (e) by inserting with effect from 1 July 2010 the following definition after the definition of “telecommunications services”:

“ ‘telephone card’ means a card, or a means other than money—

• (a) that confers a right to access a telecommunications service and, in cases where the supplier of the telecommunications service so agrees with another supplier (referred to as a ‘contracted third party supplier’), a right to receive other services or goods from that contracted third party supplier, and

• (b) that, when the card or other means is supplied to a person other than for the purpose of resale, entitles the supplier to a consideration for the supply under circumstances that preclude the user of the card or means from being liable for any further charge for access to the telecommunications service or for the receipt of services or goods from a contracted third party supplier;”.

114. Amendment of section 4B (supplies of immovable goods) of Principal Act.

114.— Section 4B of the Principal Act is amended—

• (a) by substituting the following for subsection (5):

• “(5) Subject to subsection (8), 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) of this section, or section 4C(2) or (6)(b), then, despite 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’).”,

and

• (b) by inserting the following after subsection (6):

• “(6A)

  • (a) In this subsection—

  ‘owner’ means the accountable person referred to in section 3(7);

  ‘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 3(7), 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 3(7) applies and such supply would otherwise be exempted because of subsection (2) of this section, or subsection (2) or (6)(b) of section 4C, then, despite 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 9(2A) and 19(3)(b) shall not apply.

  • (d) Paragraph (b) shall not apply where the purchaser is a person connected (within the meaning of section 7A(3)) with either the vendor or the owner.

  • (e) Where a supply of immovable goods is a supply to which section 3(7) applies and that supply would otherwise be exempted because of subsection (2) then, despite that provision, tax is chargeable on that supply, where—

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

    • (ii) the owner is a person who developed those immovable goods in the course of a business of developing immovable goods or is a person connected with that person within the meaning of section 7A(3), and

    • (iii) the owner was entitled to a deduction under section 12 for tax chargeable to that person in respect of that owner’s acquisition or development of those immovable goods.”.

115. Amendment of section 4C (transitional measures for supplies of immovable goods) of Principal Act.

115.— Section 4C of the Principal Act is amended by substituting the following for subsection (10)—

• “(10) In the application of section 12E to immovable goods and interests in immovable goods to which this section applies, subsections (4), (5) and (6) of that section shall be disregarded in respect of the person who, on 1 July 2008, owns those immovable goods or holds an interest in those immovable goods, but—

  • (a) if that person develops those immovable goods and that development is a refurbishment, within the meaning of section 12E, that is completed on or after 1 July 2008, subsections (4), (5) and (6) of that section shall not be disregarded in respect of that refurbishment;

  • (b) if, on or after 23 February 2010, that person—

    • (i) first uses those immovable goods (in this subsection referred to as the ‘first use’), or

    • (ii) changes the use of those immovable goods (in this subsection referred to as the ‘changed use’),

    and the first use, or the changed use, as the case may be, is a use of those immovable goods for a purpose other than the provision of a letting of the type referred to in paragraph 11(1) of Schedule 1, then subsection (6)(a) of section 12E shall not be disregarded for the remainder of the adjustment period applicable to those immovable goods.”.

116. Amendment of section 5 (supply of services) of Principal Act.

116.— Section 5 of the Principal Act is amended with effect from 1 July 2010 by deleting subsection (10).

117. Amendment of section 8 (accountable persons) of Principal Act.

117.— (1) Section 8 of the Principal Act is amended—

• (a) in subsection (1A)(aa)(i) by substituting “a taxable person who carries on a business in the State, or a person to whom a registration number has been assigned” for “a taxable person, or a person other than a taxable person to whom a registration number has been assigned”,

• (b) by substituting the following for subsection (2A):

• “(2A) Notwithstanding section 2, the State or any public body shall not be treated as a taxable person acting in that capacity in respect of any activity or transaction that is carried out by it in, or is closely linked to, the exercise by the State or such public body of particular rights or powers conferred on it by any enactment, except where—

  • (a) that activity is listed in Annex I (which is set out in Schedule 7) of Council Directive 2006/112/EC of 28 November 2006 ²⁴ on the common system of value added tax, and is carried out by the State or that public body on a more than negligible scale, or

  • (b) not treating the State or that public body as a taxable person in respect of that activity or transaction creates or would likely create a significant distortion of competition.”,

and

• (c) in subsection (3E)(a) with effect from 8 March 2010—

• (i) in subparagraph (i) by deleting “, or”,

• (ii) by deleting subparagraph (ii),

• (iii) in subclause (A) by deleting “, the State or such local authority”, and

• (iv) in subclause (B) by deleting “, the State or such local authority”.

• (2)
• (a) Subject to paragraph (b), paragraph (b) of subsection (1) comes into operation on 1 July 2010.

• (b) Paragraph (b) of subsection (1), in so far as it applies to the supply of community facilities, comes into operation on such day or days as the Minister may by order appoint and different days may be so appointed for different purposes or different community facilities.

• (c) For the purposes of paragraph (b), “community facilities” means—

• (i) facilities for taking part in sporting or physical education activities and services closely related to the provision of such facilities, other than facilities for taking part in golf and for this purpose facilities for taking part in golf do not include facilities for taking part in pitch and putt, and

• (ii) the hiring of halls, meeting rooms, grounds and other facilities of a similar nature to non-profit making sporting, cultural, social and community organisations.

• (d) Paragraph (c) of subsection (1) shall not affect the validity of any determination made under subsection (3E) of section 8 of the Principal Act before 8 March 2010 by an authorised officer within the meaning of the said subsection (3E), and any such determination shall continue in force as if paragraph (c) of subsection (1) had not been enacted.

118. Amendment of section 10 (amount on which tax is chargeable) of Principal Act.

118.— Section 10 of the Principal Act is amended with effect from 1 July 2010—

• (a) by substituting the following for subsection (6):

• “(6) Subject to subsection (6A), where a right to receive goods or services for the redeemable value of any coupon, stamp, telephone card, token or voucher is granted for a consideration, the consideration shall be disregarded for the purposes of this Act except to the extent (if any) that it exceeds that redeemable value.”,

• (b) by substituting the following for subsection (6A):

• “(6A) Notwithstanding subsection (6), where—

  • (a) a supplier—

    • (i) supplies a coupon, stamp, telephone card, token or voucher, which has a redeemable value, to a person who acquires it in the course or furtherance of business with a view to resale, and

    • (ii) promises to subsequently accept that coupon, stamp, telephone card, token or voucher at its redeemable value in full or part payment of the price of goods or services,

    and

  • (b) a person who acquires that coupon, stamp, telephone card, token or voucher whether from the supplier referred to in paragraph (a) or from any other person in the course or furtherance of business, supplies it for consideration in the course or furtherance of business,

  then in the case of each such supply the consideration received shall not be disregarded for the purposes of this Act and when such coupon, stamp, telephone card, token or voucher is used in payment or part payment of the price of goods or services, its redeemable value shall, for the purposes of section 10(2), be disregarded.”,

• (c) in subsection (7) by deleting paragraph (a),

• (d) in subsection (7) by substituting the following for paragraphs (b) and (c):

• “(b) supplies of coupons, stamps, tokens or vouchers when supplied as things in action (not being coupons, stamps, tokens or vouchers specified in subsection (6)),

• (c) subject to subsection (6A) or (7A), supplies of goods or services wholly or partly in exchange for coupons, stamps, telephone cards, tokens or vouchers of a kind specified in subsection (6) or paragraph (b),”,

and

• (e) in subsection (10) by inserting the following definition after the definition of “open market value”:

“ ‘redeemable value’ means the amount stated on a coupon, stamp, telephone card, token or voucher or, where an amount is not so stated, the value expressed in terms of money for which a coupon, stamp, telephone card, token or voucher can be used as consideration (or part consideration) for a supply of goods or services;”.

119. Amendment of section 10A (margin scheme goods) of Principal Act.

119.— Section 10A of the Principal Act is amended with effect from 1 January 2010—

• (a) in subsection (1) in the definition of “second-hand goods” by substituting “including means of transport (within the meaning of section 12B) and agricultural machinery (within the meaning of section 12C), purchased or acquired on or after 1 January 2010, but not including” for “other than means of transport, agricultural machinery (within the meaning of section 12C),”,

• (b) in subsection (1) by substituting the following for the definition of “taxable dealer”:

“ ‘taxable dealer’—

• (a) means an accountable person who in the course or furtherance of business, whether acting on that person’s own behalf, or on behalf of another person pursuant to a contract under which commission is payable on purchase or sale, purchases or acquires or applies for the purpose of his or her business margin scheme goods or the goods referred to in paragraphs (b) and (c) of subsection (4), with a view to resale, or imports the goods referred to in paragraph (a) of subsection (4), with a view to resale, and

• (b) includes a person supplying financial services of the kind specified in paragraph 6(1)(e) of Schedule 1 who acquires or purchases margin scheme goods for the purpose of the supply thereof as part of an agreement of the kind referred to in section 3(1)(b),

and, for the purposes of this interpretation, a person in another Member State shall be deemed to be a taxable dealer where, in similar circumstances, that person would be a taxable dealer in the State under this section.”,

• (c) by substituting the following for subsection (13):

• “(13) Notwithstanding paragraph 12 of Schedule 1 where an accountable person acquires goods to which the margin scheme has been applied and that person subsequently supplies those goods, that paragraph shall not apply to that supply, unless the goods consist of—

  • (a) motor vehicles within the meaning of section 12(3)(b) which that person acquired other than as stock-in-trade or for the purposes of a business which consists in whole or in part of the hiring of motor vehicles or for use, in a driving school business, for giving driving instruction, or

  • (b) goods used by that person solely in the course of an exempted activity.”,

and

• (d) by inserting the following after subsection (13):

• “(14) With effect from the date of the passing of the Finance Act 2010—

  • (a) where a means of transport which is a motor vehicle within the meaning of section 12(3)(b) is declared for registration to the Revenue Commissioners in accordance with section 131 of the Finance Act 1992 by a taxable dealer on that dealer’s own behalf and on which deductibility in accordance with section 12 has been claimed by that dealer, then that means of transport shall be treated for the purposes of this Act as if it were removed from stock-in-trade and such removal is deemed to be a supply of that means of transport by that taxable dealer for the purposes of section 3(1)(e) and, for the avoidance of doubt, the amount of tax chargeable in respect of that supply is the amount referred to in paragraph (b)(ii) and accordingly is not included in any amount which the taxable person is entitled to deduct in accordance with section 12(1)(a)(iii),

  • (b) at the time when a taxable dealer supplies to another person a means of transport which is deemed to have been previously supplied in accordance with paragraph (a) or section 12B(11)(a), then that means of transport is deemed to have been re-acquired by that dealer as margin scheme goods immediately before the supply to that person and, for the purpose of the calculation of the profit margin in relation to that supply the purchase price of the means of transport is deemed to be the sum of—

    • (i) the amount on which tax was chargeable on the supply of that means of transport to the dealer,

    • (ii) the tax which was chargeable on the supply referred to at subparagraph (i), and

    • (iii) the vehicle registration tax accounted for by that dealer in respect of the registration of that means of transport.”.

120. Amendment of section 10B (special scheme for auctioneers) of Principal Act.

120.— Section 10B of the Principal Act is amended with effect from 1 January 2010 by substituting the following for subsection (10):

• “(10) Notwithstanding paragraph 12 of Schedule 1, where an accountable person acquires goods to which the auction scheme has been applied and that person subsequently supplies those goods, that paragraph shall not apply to that supply, unless the goods consist of—

  • (a) motor vehicles within the meaning of section 12(3)(b) which that person acquired other than as stock-in-trade or for the purposes of a business which consists in whole or in part of the hiring of motor vehicles or for use, in a driving school business, for giving driving instruction, or

  • (b) goods used by that person solely in the course of an exempted activity.”.

121. Amendment of section 11 (rates of tax) of Principal Act.

121.— Section 11 of the Principal Act is amended with effect from 1 January 2010 in subsection (1)(a) by substituting “21 per cent” for “21.5 per cent”.

122. Amendment of section 12B (special scheme for means of transport supplied by taxable dealers) of Principal Act.

122.— Section 12B of the Principal Act is amended with effect from 1 January 2010—

• (a) in subsection (4)—

• (i) in paragraph (b) by substituting “the taxable dealer.” for “the taxable dealer:”, and

• (ii) by deleting the proviso to subsection (4),

• (b) in subsection (11) by inserting the following after paragraph (c):

• “(d) This subsection, other than paragraph (e), does not apply on or after the date of the passing of the Finance Act 2010.

• (e) Where on the date of the passing of the Finance Act 2010 a taxable dealer has a means of transport in respect of which prior to that date the taxable dealer had not claimed deductibility in the circumstances referred to in paragraph (c), then, when that taxable dealer supplies that means of transport to another person, that supply shall be treated as a supply of margin scheme goods for the purposes of section 10A and section 10A(14)(b) shall apply for the purpose of the calculation of the profit margin (within the meaning of section 10A) in relation to that supply.”,

and

• (c) by inserting the following after subsection (11):

• “(12)

  • (a) Subject to paragraph (b), where a taxable dealer purchases or acquires a means of transport referred to in subsection (2) in the period from 1 January 2010 to 30 June 2010 (in this subsection referred to as the ‘transitional period’) the amount of residual tax referred to in subsection (4) which that taxable dealer is entitled to deduct shall be restricted to—

    • (i) 40 per cent of the residual tax in the case of a means of transport purchased or acquired in the taxable period beginning on 1 January 2010,

    • (ii) 30 per cent of the residual tax in the case of a means of transport purchased or acquired in the taxable period beginning on 1 March 2010, and

    • (iii) 20 per cent of the residual tax in the case of a means of transport purchased or acquired in the taxable period beginning on 1 May 2010.

  • (b) The entitlement to restricted residual tax as provided for in paragraph (a) applies only on the occasion of the first purchase or acquisition by a taxable dealer of a means of transport referred to in subsection (2) which occurs on or after 1 January 2010, and does not apply to any subsequent purchase or acquisition of that means of transport by that or any other taxable dealer.

  • (c) Where a taxable dealer purchased or acquired a means of transport referred to in subsection (2) prior to 1 January 2010 and during the transitional period supplies that means of transport to another taxable dealer, the supplier shall indicate on the invoice in respect of that supply that the special scheme as provided for by this section has been applied and that restricted residual tax only is applicable.

  • (d) Where a taxable dealer purchased or acquired a means of transport referred to in subsection (2) prior to 1 January 2010 and during the transitional period supplies that means of transport to a taxable person other than another taxable dealer, the supplier shall indicate on the invoice in respect of that supply that the special scheme as provided for by this section has been applied and that the invoice does not give the right to deduct the tax chargeable on that supply.

  • (e) Where a taxable dealer opts to apply the margin scheme or applies the auction scheme to the supply of a means of transport referred to in subsection (2) which that dealer purchased or acquired on or after 1 January 2010, the supplier shall indicate on the invoice in respect of that supply that the margin scheme or the auction scheme, as appropriate, has been applied and no residual tax is applicable.

  • (f) Where during the transitional period a taxable dealer purchases or acquires a means of transport referred to in subsection (2) from a person other than another taxable dealer—

    • (i) the taxable dealer shall take all reasonable steps to establish whether or not the means of transport was acquired during the transitional period by that person from another taxable dealer (in this paragraph referred to as a ‘motor trader’), and

    • (ii) if that person acquired the means of transport from a motor trader during the transitional period, the taxable dealer shall take all reasonable steps to establish whether or not restricted residual tax as provided for in paragraph (a) was deductible by that motor trader or any other taxable dealer in relation to the means of transport.

• (13) This section does not apply to a means of transport purchased or acquired on or after 1 July 2010.”.

123. Amendment of section 12C (special scheme for agricultural machinery) of Principal Act.

123.— Section 12C of the Principal Act is amended with effect from 1 January 2010—

• (a) by deleting subsection (4), and

• (b) by inserting the following after subsection (5):

• “(6)

  • (a) Subject to paragraph (b), where a taxable dealer purchases or acquires from a flat-rate farmer or a person referred to in subsection (1A) agricultural machinery in the period from 1 January 2010 to 31 August 2010 (in this subsection referred to as the ‘transitional period’) the amount of residual tax referred to in subsection (3) which that taxable dealer is entitled to deduct shall be restricted to—

    • (i) 40 per cent of the residual tax in the case of agricultural machinery purchased or acquired in a taxable period beginning on 1 January 2010, 1 March 2010 or 1 May 2010, as the case may be, and

    • (ii) 30 per cent of the residual tax in the case of agricultural machinery purchased or acquired in the taxable period beginning on 1 July 2010.

  • (b) The entitlement to restricted residual tax as provided for in paragraph (a) applies only on the occasion of the first purchase or acquisition by a taxable dealer of agricultural machinery which occurs on or after 1 January 2010, and does not apply to any subsequent purchase or acquisition of that agricultural machinery by that or any other taxable dealer.

  • (c) Where during the transitional period a taxable dealer purchases or acquires agricultural machinery from a flat-rate farmer or a person referred to in subsection (1A)—

    • (i) the taxable dealer shall take all reasonable steps to establish whether or not the agricultural machinery was acquired in the transitional period by that flat-rate farmer or that person from another taxable dealer (in this paragraph referred to as an ‘agricultural machinery trader’), and

    • (ii) if that flat-rate farmer or that person acquired the means of transport from an agricultural machinery trader during the transitional period, the taxable dealer shall take all reasonable steps to establish whether or not restricted residual tax as provided for in paragraph (a) was deductible by that agricultural machinery trader or any other taxable dealer in relation to the agricultural machinery.

• (7) This section does not apply to agricultural machinery purchased or acquired on or after 1 September 2010.”.

124. Amendment of section 13 (remission of tax on goods exported, etc.) of Principal Act.

124.— Section 13 of the Principal Act is amended—

• (a) in subsection (1A) by substituting the following for subparagraphs (i) and (ii):

• “(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 third month following the month in which the supply takes place,”,

• (b) in subsection (1A) by inserting the following after subparagraph (ii):

“(iia) has proof that, where an amount of tax has been charged to the traveller in respect of a supply of goods covered by subparagraph (ii), that the amount to be repaid to the traveller has been repaid to that traveller no later than the twenty-fifth working day following receipt by the supplier of the traveller’s claim to repayment,”,

and

• (c) by inserting the following after subsection (1C)—

• “(1D) Where, in relation to a supply of goods, any of the conditions of subparagraphs (i) to (v) of subsection (1A) are not complied with or are not complied with within the time limits specified in those subparagraphs, 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.”.

125. Amendment of section 15 (charge of tax on imported goods) of Principal Act.

125.— Section 15 of the Principal Act is amended with effect from 1 January 2011 by inserting the following after subsection (7):

• “(8) In the case 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 (referred to in this subsection 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 1 of ‘a 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.”.

126. Amendment of section 16 (duty to keep records) of Principal Act.

126.— Section 16 of the Principal Act is amended with effect from 1 January 2010 by inserting the following after subsection (5):

• “(6) Every taxable dealer to whom section 12B or 12C applies shall, in addition to records required to be kept in accordance with any other provision of this section and regulations, keep a record of the following information, namely—

  • (a) the name and address of each person from whom such taxable dealer purchased or acquired a means of transport or, as the case may be, agricultural machinery in the period from 1 January 2010 to 30 June 2010 in relation to which such taxable dealer deducted residual tax in accordance with section 12B or 12C, as the case may be,

  • (b) the date on which such means of transport or agricultural machinery was so purchased or acquired,

  • (c) the amount of such residual tax so deducted in relation to each such means of transport or agricultural machinery, and

  • (d) the vehicle registration number of each such means of transport or, as the case may be, details of the make, model and, where appropriate, the year of manufacture, the engine number and registration number of each such agricultural machine.

• (7) A taxable dealer to whom section 12B or 12C applies shall, on receipt of a notice in writing to that effect from an officer of the Revenue Commissioners, furnish to that officer within the time specified in the notice (which shall not be less than 21 days from the date of the notice), or to such other officer of the Revenue Commissioners as may be specified in the notice, a copy of the information required to be kept by the taxable dealer under subsection (6).”.

127. Amendment of section 17 (invoices) of Principal Act.

127.— Section 17 of the Principal Act is amended by inserting the following after subsection (1C)—

• “(1D)

  • (a) In this subsection—

  ‘travel agent’ and ‘margin scheme services’ have the meanings assigned to them by section 10C(1);

  ‘qualifying accommodation’ and ‘qualifying conference’ have the meanings assigned to them by section 12(3)(ca).

  • (b) Where a travel agent supplies margin scheme services that include qualifying accommodation in connection with attendance by a traveller at a qualifying conference the travel agent shall issue a document to the traveller containing particulars of the amount of tax chargeable by the accommodation provider in respect of the supply of the qualifying accommodation to that traveller.”.

128. Amendment of section 26 (penalties generally) of Principal Act.

128.— Section 26 of the Principal Act is amended with effect from 1 January 2010 by inserting the following subsection after subsection (3B):

• “(3C) A person who fails to comply with a notice issued under section 16(7) shall be liable to a penalty of €4,000.”.

129. Addition of Schedule 7 to Principal Act.

129.— The Principal Act is amended by inserting the following Schedule after the Ninth Schedule which is renamed “ Schedule 6 ” by virtue of section 131:

“SCHEDULE 7

ACTIVITIES LISTED IN ANNEX 1 OF COUNCIL DIRECTIVE 2006/112/EC OF 28 NOVEMBER 2006

• (1) Telecommunication services;

• (2) supply of water, gas, electricity and thermal energy;

• (3) transport of goods;

• (4) port and airport services;

• (5) passenger transport;

• (6) supply of new goods manufactured for sale;

• (7) transactions in respect of agricultural products, carried out by agricultural intervention agencies pursuant to Regulations on the common organisation of the market in those products;

• (8) organisation of trade fairs and exhibitions;

• (9) warehousing;

• (10) activities of commercial publicity bodies;

• (11) activities of travel agents;

• (12) running of staff shops, cooperatives and industrial canteens and similar institutions;

• (13) activities carried out by radio and television bodies in so far as these are not exempt pursuant to Article 132(1)(q) of Council Directive 2006/112/EC.”.

130. Substitution of First and Second Schedules to Principal Act.

130.— The Principal Act is amended by substituting the following Schedules for the First and Second Schedules: