S.I. No. 639/2010 - Value-Added Tax Regulations 2010

ARRANGEMENT OF REGULATIONS

Preliminary and General

1.

2.

Accountable Persons

3.

4.

Taxable Transactions

5.

6.

7.

8.

Taxable Amount

9.

10.

11.

Rates and Exemption

12.

13.

Provisions Relating to Imports, Exports, etc

14.

15.

Deductions

16.

17.

18.

Obligations of Accountable Persons

19.

20.

21.

22.

23.

24.

25.

26.

27.

28.

29.

30.

Special Schemes

31.

32.

33.

34.

Immovable Goods

35.

Refunds and Repayments of Tax

36.

37.

38.

Administration and General

39.

40.

41.

42.

43.

Miscellaneous

44.

45.

46.

47.

S.I. No. 639 of 2010

VALUE-ADDED TAX REGULATIONS 2010

Notice of the making of this Statutory Instrument was published in

“Iris Oifigiúil” of 31st December, 2010.

The Revenue Commissioners, in exercise of the powers conferred on them by section 120 of the Value-Added Tax Consolidation Act (No. 31 of 2010), and as respects Regulations 14, 15, 31, 38, 44 and 46 with the consent of the Minister for Finance, hereby make the following regulations:

Preliminary and General

Citation and commencement

• (2) These Regulations come into operation on 1 January 2011.

Interpretation

“Act” means the Value-Added Tax Consolidation Act 2010 ;

“Commissioners” means the Revenue Commissioners;

“repealed enactment” means the Value-Added Tax Act 1972 (No. 22 of 1972);

“registration number”, in relation to a person, means the number assigned to the person for the purposes of registration under section 65 of the Act;

“value-added tax identification number in another Member State”, in relation to a person, means the identification number issued to the person by the authorities of another Member State for the purposes of value-added tax referred to in the VAT Directive;

“VAT Directive” means Council Directive 2006/112/EC of 28 November 2006 on the common system of value-added tax¹ .

Accountable Persons

Election to be an accountable person and cancellation of such election

“application form” means such form as is provided by the Commissioners for the purpose of enabling a person to apply to elect to be an accountable person;

“end-date” means the last day of the taxable period immediately preceding the request period;

“relevant taxable periods” means the taxable periods comprised in whichever of the periods referred to in paragraph (5)(b)(i) is appropriate;

“request period” means the taxable period during which a person notifies the Commissioners that he or she requests the cancellation of an election;

“start-date” means—

• (a) in the case of an accountable person referred to in paragraph (4)(b), the date that person was first treated as an accountable person,

• (b) by agreement between the person concerned and the Commissioners, the beginning of the taxable period during which the application form is received by the Commissioners, or

• (c) in any other case, the beginning of the taxable period immediately following the taxable period during which the application form is received by the Commissioners.

• (2) A person who, in accordance with section 6(1) of the Act, is not an accountable person but who wishes to elect to be such a person is required to register for tax by completing the application form.

• (3) The submission of the application form referred to in paragraph (2) constitutes an election to be an accountable person. Such election is effective from the start-date until the date the election is cancelled in accordance with paragraph (7).

(4)(a) A person who is an accountable person by reason only of an election made in accordance with paragraphs (2) and (3) is entitled to have such election cancelled, subject to fulfilling the requirements of paragraph (5).

• (b) An accountable person who satisfies the Commissioners that, in accordance with section 7 of the Act, he or she may be treated as a person who is not an accountable person is entitled to have his or her registration as an accountable person cancelled, subject to fulfilling the requirements of paragraph (5).

• (5) A person who wishes to have his or her election cancelled is required to—

• (a) apply to the Commissioners in writing to have his or her election cancelled,

• (b) furnish particulars to the Commissioners of—

• (i) the total amount of tax paid by him or her in accordance with sections 76 and 77 of the Act on the supply by him or her of goods or services, other than services consisting of the letting of immovable goods referred to in paragraph 11 of Schedule 3 to the Act, in respect of whichever of the following periods is the shorter:

• (I) all the taxable periods comprised in the period commencing with the start-date and ending with the end-date, or

• (II) the 18 consecutive taxable periods up to the end-date,

• (ii) the total amount of tax refunded to him or her in accordance with section 99(1) of the Act in respect of tax borne or paid in relation to the supply by him or her of goods or services, other than services consisting of the letting of immovable goods referred to in paragraph 11 of Schedule 3 to the Act, in respect of the relevant taxable periods, and

• (iii) the tax deductible under Chapter 1 of Part 8 of the Act in respect of the intra-Community acquisition of goods, if any, made by him or her in the same relevant taxable periods,

and

• (c) furnish a return in accordance with sections 76 and 77 of the Act for the request period, and at the same time pay to the Collector-General—

• (i) any tax payable in respect of goods and services supplied by him or her during the request period, and

• (ii) an amount equal to the excess (if any) of the sum of the tax referred to in clauses (ii) and (iii) of subparagraph (b) over the tax referred to in clause (i) of that subparagraph;

but, if that person supplied qualifying goods and services in accordance with section 56 of the Act during the relevant taxable periods, he or she may include in the amount referred to in subparagraph (b)(i) the tax that would have been chargeable had the supplies not been zero-rated under that section.

• (6) Where a person who supplies services consisting of the letting of immovable goods referred to in paragraph 11 of Schedule 3 to the Act wishes to have his or her election cancelled, he or she is required to—

• (a) apply to the Commissioners in writing to have his or her election cancelled, and

• (b) furnish a return in accordance with sections 76 and 77 of the Act, and at the same time pay to the Collector-General—

• (i) any tax payable in respect of those services supplied during the request period, and

• (ii) the cancellation amount provided for in section 8(2) of the Act, as if it were tax due in accordance with Chapter 3 of Part 9 of the Act, in addition to any amount payable in accordance with section 8(1) of the Act.

• (7) Where the Commissioners are satisfied that the requirements of paragraph (5) and, where appropriate, paragraph (6) are fulfilled by the person concerned, they shall—

• (a) notify that person in writing accordingly, and

• (b) cancel that person’s election to be an accountable person with effect from the end of the taxable period during which those requirements have been fulfilled.

• (8) A person who requests the cancellation of his or her election to be an accountable person is not entitled, under section 99(1) of the Act, to any refund of tax, other than a refund referable solely to an error or mistake made by him or her, for the request period or any subsequent taxable periods in excess of an amount calculated in accordance with the following formula:

A + B

where—

A is the excess of the amount referred to in clause (i) of paragraph (5)(b) over the sum of the amounts referred to in clauses (ii) and (iii) of that paragraph but, where there is no such excess, A is equal to zero, and

B is the sum of the amounts of tax paid under sections 76 and 77 of the Act for the request period and any subsequent taxable periods until the election is cancelled.

• (9) In the case of a farmer who, had he or she made no election to be an accountable person, would not be an accountable person by virtue of section 6(1)(a) of the Act, paragraph (5)(b)(i) applies as if—

• (a) the amount of tax paid by him or her in accordance with sections 76 and 77 of the Act in respect of each of the relevant taxable periods were increased by an amount equal to the flat-rate addition, which that farmer would be required (in accordance with section 86(1) of the Act) to indicate on an invoice in respect of the supply of agricultural produce or of an agricultural service if that farmer had not elected to be an accountable person, and

• (b) the total amount of tax refunded to him or her in respect of all the relevant taxable periods comprised in the period included in the calculation in paragraph (5)(b)(i) were reduced by the total amount of tax which qualified for deduction under Chapter 1 of Part 8 of the Act in respect of those taxable periods and which, in accordance with any order made under section 103 of the Act, would fall to be refunded to him or her if he or she were not an accountable person.

Groups

• (2) The Commissioners shall—

• (a) determine whether a notification under section 15 of the Act should be issued to such persons, and

• (b) where they determine that such notification should so issue, specify the date from which the notification applies.

Taxable Transactions

Exemption of certain business gifts

Death, bankruptcy or liquidation

Supply of services comprising use of immovable goods for private or non-business purposes

• (2) Where section 27(2) of the Act applies in relation to immovable goods, being immovable goods acquired or developed by an accountable person before 1 January 2011, the private use proportion shall be calculated in accordance with the following formula:

A

B

where—

A is equal to the floor area of that part of the immovable goods that is used for private or non-business purposes in the relevant taxable period, and

B is equal to the total floor area of those immovable goods.

• (3) The amount on which tax is chargeable in relation to the supply of services referred to in section 27(2) of the Act in any taxable period shall be calculated in accordance with the following formula:

C x D

20 x 6

where—

C is the amount on which tax is chargeable on the acquisition or development of the immovable goods, and

D is the private use proportion calculated in accordance with the formula in paragraph (2).

• (4) The rate of tax applicable to the supply of services referred to in paragraph (3) is the rate specified in section 46(1)(a) of the Act.

Supply of certain services

• (2) This Regulation does not apply to any such supplies as are referred to in paragraph (1) if the total cost of providing those supplies has not exceeded, and is not likely to exceed, the amount specified in the definition of “services threshold” in section 2(1) of the Act in any continuous period of 12 months, unless the person making those supplies elects to be an accountable person in respect of those supplies.

Taxable Amount

Adjustments for returned goods, discounts and price alterations

• (a) the consideration exclusive of tax actually received by an accountable person in respect of the supply by the accountable person of any goods or services is less than the amount on which tax has become chargeable in respect of such supply, or

• (b) no consideration is actually received.

• (2) The amount of the deficiency in respect of any supply shall be ascertained by deducting from the amount on which tax has become chargeable in respect of such supply, the consideration actually received exclusive of tax.

(3)(a) Subject to subparagraph (b), the sum of the deficiencies ascertained in accordance with paragraph (2), incurred in each taxable period and relating to consideration chargeable at each of the various rates of tax (including the zero rate) specified in section 46(1) of the Act, shall be deducted from the amounts ascertained in accordance with Chapter 1 of Part 5 of the Act which would otherwise be chargeable with tax at each of those rates, and the net amounts as so ascertained shall be the amounts on which tax is chargeable for the taxable period during which the deficiencies are ascertained.

• (b) For the purposes of subparagraph (a), where the sum of the deficiencies as ascertained in accordance with that subparagraph in relation to tax chargeable at any of the rates so specified in section 46(1) of the Act exceeds the amount on which, but for this Regulation

• (i) tax would be chargeable at that rate, or

• (ii) no tax is chargeable at that rate,

then, the tax appropriate to the excess or to the sum of the deficiencies, if no tax is chargeable, shall be treated as tax deductible in accordance with Chapter 1 of Part 8 of the Act for that taxable period.

(4)(a) Where, in accordance with Chapter 2 of Part 9 of the Act, a credit note is issued by an accountable person in respect of an adjustment under this Regulation, then the accountable person to whom the credit note is issued shall reduce the amount which would otherwise be deductible under Chapter 1 of Part 8 of the Act for the taxable period during which the credit note is issued (in this paragraph referred to as the “tax deduction”) by the appropriate amount of tax shown thereon (in this paragraph referred to as the “tax reduction”).

• (b) Where the tax reduction exceeds the tax deduction, then the excess shall be carried forward and deducted from the tax deductible under Chapter 1 of Part 8 of the Act for the next taxable period and so on until the tax reduction is exhausted.

(5)(a) Where, in accordance with section 68(2)(b) of the Act, a farmer credit note is issued by a flat-rate farmer, then the accountable person to whom the credit note is issued shall reduce the amount which would otherwise be deductible under section 59(2)(o) of the Act for the taxable period during which the farmer credit note is issued (in this paragraph referred to as the “flat-rate deduction”) by the amount of the appropriate flat-rate addition shown thereon (in this paragraph referred to as the “flat-rate reduction”).

• (b) Where the flat-rate reduction exceeds the flat-rate deduction, the excess shall be carried forward and deducted from the amount deductible under section 59(2)(o) of the Act for the next taxable period and so on until the flat-rate reduction is exhausted.

Adjustments for bad debts and for early termination of hire purchase agreements

“early termination”, in relation to a hire purchase agreement, means the termination of the hire purchase agreement on a date prior to the date fixed for such termination under that agreement and the return of the goods which are subject to that agreement;

“part payment” means the amount of money or the value of goods traded in by the customer, which amount or value is shown in the hire purchase agreement as representing that part of the sale price of goods that is not being financed under the terms of the hire purchase agreement;

“sale price” means the price shown in the hire purchase agreement which is inclusive of tax, and vehicle registration tax where appropriate, and which is the price for which the goods would be sold to a customer if their purchase were not financed in whole or in part under a hire purchase agreement.

• (2) In a case in which section 39(2) of the Act applies by reason of the default of a debtor, where—

• (a) the consideration, exclusive of tax, actually received by an accountable person in relation to the supply by that person of any goods or services is less than the amount on which tax was chargeable in respect of such supply, or

• (b) no consideration is actually received,

then, subject to the conditions in paragraph (3), relief in respect of the tax attributable to the deficiency (in this Regulation referred to as a “bad debt”) may be claimed in accordance with this Regulation.

• (3) An accountable person who has accounted for tax in respect of a supply covered by paragraph (2) may subsequently claim bad debt relief for the tax attributable to the bad debt, where—

• (a) the accountable person has taken all reasonable steps to recover the bad debt,

• (b) the bad debt is allowable as a deduction under section 81(2)(i) of the Taxes Consolidation Act 1997 (No. 39 of 1997) in cases where the accountable person is chargeable to tax under Case I or II of Schedule D of that Act,

• (c) the bad debt has been written off in the financial accounts of the accountable person and the requirements of Regulation 27(1)(m) in respect of that debt have been fulfilled by that accountable person, and

• (d) the person from whom the debt is due is not connected with the accountable person at any time in the period from the date the supply giving rise to the debt is made to the date on which the debt is written off in the financial accounts of the accountable person, and the question of whether a person is connected with the accountable person shall be determined in accordance with section 97(3) of the Act.

• (4) The amount of the relief which an accountable person may claim in respect of a supply covered by paragraphs (2) and (3), which is not a supply within the meaning of section 19(1)(c) of the Act, is calculated in accordance with the following formula:

A x B

100+B

where—

A is the amount that is outstanding from the debtor in relation to the taxable supply, and

B is the percentage rate of tax, specified in section 46(1) of the Act, which was applied to the supply in question.

(5)(a) The amount of the relief that an accountable person may claim in respect of a supply covered by paragraphs (2) and (3), which is a supply within the meaning of section 19(1)(c) of the Act (in this Regulation referred to as a “supply of the goods under the hire purchase agreement”), is calculated in accordance with the following formula:

(C - D) x (E - F)

C

where—

C is the sum of all the amounts scheduled for payment by instalment under the hire purchase agreement,

D is the total amount paid by the customer against the instalments scheduled for payment under the hire purchase agreement up to and including the date on which the bad debt is written off in the financial accounts of the accountable person,

E is an amount equal to the amount of tax accounted for by the accountable person on the supply of the goods under the hire purchase agreement, and

F is an amount equal to the tax attributable to a part payment shown in the hire purchase agreement calculated in accordance with subparagraph (b).

• (b) The tax attributable to a part payment is calculated in accordance with the following formula:

G x E

H

where—

G is an amount equal to the part payment,

E is an amount equal to the amount of tax accounted for by the accountable person on the supply of the goods under the hire purchase agreement, and

H is the sale price of the goods.

• (6) In a case in which section 39(2) of the Act applies by reason of the return of the goods by a customer to his or her supplier as part of an early termination of a hire purchase agreement, relief in respect of the supply of the goods under the hire purchase agreement may, subject to section 39(4) of the Act, be claimed in accordance with paragraph (7).

• (7) The amount of the relief that an accountable person may claim in respect of a supply of the goods referred to in paragraph (6) is established by—

• (a) calculating the tax attributable to the part payment in accordance with the formula in paragraph (5)(b), and

• (b) calculating, in accordance with the following formula, the tax attributable to the sum of the total amount paid by the customer against the instalments scheduled for payment under the hire purchase agreement and any amount paid by the customer as part of the early termination of that agreement:

J x (E - K)

C

where—

J is the total amount paid by the customer against the instalments scheduled for payment under the hire purchase agreement up to and including the prior date agreed under the early termination plus any amount paid by the customer as part of the early termination,

E is an amount equal to the amount of tax accounted for by the accountable person on the supply of the goods under the hire purchase agreement,

K is an amount equal to the amount of tax attributable to the part payment shown in the hire purchase agreement calculated in accordance with paragraph (5)(b), and

C is the sum of all the amounts scheduled for payment by instalment under the hire purchase agreement,

and then subtracting the sum of the amounts calculated in accordance with subparagraphs (a) and (b) from the tax accounted for by the accountable person on the supply of the goods under the hire purchase agreement.

• (8) Notwithstanding paragraphs (4), (5) and (7), the accountable person may, subject to the prior agreement of the Commissioners, use any other method of calculating the relief that correctly reflects the tax appropriate to the amount outstanding.

• (9) An accountable person is entitled to claim the total amount of relief calculated in accordance with paragraph (4), (5), (7) or (8), as if that amount were tax deductible in accordance with Chapter 1 of Part 8 of the Act for the taxable period for which a claim is made.

• (10) Where an accountable person, who has claimed relief in respect of any bad debt in accordance with this Regulation, subsequently recovers all or part of that debt, then—

• (a) the amount so recovered is treated as inclusive of tax,

• (b) the accountable person is liable to account for the tax on the amount so recovered, and

• (c) that tax is due and payable by the accountable person for the taxable period in which the amount is so recovered.

Stamps, coupons, tokens and vouchers

• (2) The amount on which tax is chargeable by virtue of section 3(a) or (c) of the Act in relation to supplies of goods or services to which section 43(4)(b) of the Act relates shall be the consideration which was disregarded for the purpose of the Act in accordance with section 43(2) of the Act.

Rates and Exemption

Apportionment of consideration

(2)(a) Subject to paragraphs (3) and (4), an individual supply or supplies in a multiple supply may be disregarded by an accountable person for the purpose of the application of section 47(1)(b) of the Act, where the total tax exclusive cost to the accountable person of such supply or supplies does not exceed 50 per cent of the total tax exclusive consideration that the accountable person becomes entitled to receive for that multiple supply or €1, whichever is the lesser.

• (b) Notwithstanding subparagraph (a), an individual supply of a beverage suitable for human consumption on which tax is chargeable at a rate other than the rate specified in section 46(1)(b) of the Act shall not be disregarded.

• (3) Where a multiple supply consists of an individual supply or supplies which an accountable person disregards in accordance with paragraph (2) and one remaining individual supply, then the total consideration which the accountable person is entitled to receive for that multiple supply shall be treated as an amount chargeable at the rate specified in section 46(1) of the Act appropriate to that remaining individual supply.

• (4) Where a multiple supply consists of an individual supply or supplies which an accountable person disregards in accordance with paragraph (2) and more than one remaining individual supply, then the taxable amount referable to the disregarded individual supply as ascertained in accordance with section 47(1)(b) of the Act shall be treated as an amount chargeable to tax—

• (a) where there is more than one rate applicable to those remaining individual supplies, at the lowest of those rates, and

• (b) in any other case, at the rate applicable to the remaining individual supplies.

Determination in regard to tax

• (2) A determination shall—

• (a) be in writing,

• (b) contain the particulars of the determination,

• (c) be signed by the officer making the determination, and

• (d) specify the date as on and from which the determination has effect.

• (3) Determinations concerning 2 or more matters may be included in the same document.

Provisions Relating to Imports, Exports, etc

Imported goods

• (2) Section 29(7) of the Finance Act 1978 (No. 21 of 1978) applies in relation to tax payable at importation with the modification that the reference to goods entered for home use shall be deemed to include a reference to imported goods entered for free circulation.

• (3) Legislation relating to customs adopted by the European Communities concerning the placing of goods under—

• (a) arrangements for temporary importation with total exemption from customs duty,

• (b) external transit arrangements,

• (c) temporary storage arrangements,

• (d) free zone or free warehouse arrangements,

• (e) customs warehousing arrangements,

• (f) inward processing (suspension) arrangements,

• (g) arrangements for processing under customs control,

• (h) arrangements for the admission of goods into territorial waters in connection with drilling or production platforms, and

• (i) outward processing arrangements,

shall apply only in relation to tax chargeable at importation where, and for such time as, goods are held under those arrangements for the purpose of compliance with and implementation of the Community rules relating to customs.

• (4) Without prejudice to paragraph (3), legislation relating to customs adopted by the European Communities concerning suspension of customs duties, reduction in customs duties, or repayment or remission of customs duties does not apply to tax chargeable at importation.

• (5) In accordance with sections 54 and 120(7) of the Act, where goods are reimported by the person who exported them, in the state in which they were exported, being goods which are exempt from customs duties on such re-importation, then those goods shall be exempt from value-added tax.

Retail Export Scheme

• (2) The application of the rate of zero per cent to a supply of goods or services specified in section 58(2) of the Act is subject to the following conditions:

• (a) that, at the time of the supply of the goods to the traveller, the supplier makes, and subsequently retains for the period provided for in Chapter 7 of Part 9 of the Act, a record of the details of the documentary proof inspected by him or her confirming that the purchaser was a traveller,

• (b) that, at the time of supply of the goods to the traveller, the supplier issues an invoice to the traveller showing the following details:

• (i) the date on which the invoice is issued,

• (ii) the name, address and registration number of the supplier,

• (iii) the name and address of the traveller,

• (iv) a description of the goods supplied,

• (v) the amount payable by the traveller at the time of the sale of the goods,

• (vi) the tax charged, if any, and

• (vii) the exchange rate or method to be used in determining the exchange rate, if repayment of the tax is to be made to the traveller by the supplier in a currency other than the euro,

• (c) that the traveller signs the completed invoice referred to at subparagraph (b),

• (d) that the notification of the charges made by the supplier, referred to in section 58(2)(iv) of the Act, is made at the latest—

• (i) where the goods are exported by the traveller, at the time of the handing over of those goods to the traveller,

• (ii) where the goods are exported on behalf of the traveller, at the time when those goods are supplied to the traveller,

and where an amount is charged to the traveller for procuring a repayment of tax or arranging for the zero-rating of the supply, such amount does not exceed the amount notified in accordance with section 58(2)(iv) of the Act,

• (e) that the time limit for making a repayment to the traveller, referred to in section 58(2)(ii) of the Act, is not later than the twenty-fifth working day following the receipt by the supplier of the traveller’s claim to repayment,

• (f) that the supplier keeps a copy of the invoice issued in accordance with subparagraph (c), signed by the traveller, and keeps a record in relation to each invoice of—

• (i) the net amount (being the amount of tax charged to the traveller minus any commission or fee charged by the supplier to the traveller in respect of the transaction in question) repaid by the supplier to the traveller in respect of the supply in question, expressed in the currency in which the repayment was made,

• (ii) where appropriate, the exchange rate used,

• (iii) the date and method of such repayment, and

• (iv) proof in accordance with paragraph (3) that the goods were exported by or on behalf of the traveller.

• (3) Where the goods—

• (a) are exported by the traveller, the proof of export of the goods required shall be the invoice issued in accordance with paragraph 2(b) in respect of that supply, certified—

• (i) by an officer of the Commissioners assigned to a customs office in the State,

• (ii) where the goods have been exported via another Member State of the Community, by a customs officer in that Member State, or

• (iii) in such other manner as the Commissioners may deem acceptable for the purpose,

• (b) are exported on behalf of the traveller, the proof of export of the goods shall take the form of documentary evidence of export, certified—

• (i) by an officer of the Commissioners assigned to a customs office in the State, or

• (ii) where the goods are exported from another Member State of the Community, by a customs officer in that Member State.

• (4) Where the value of the goods referred to in paragraph (3) exceeds €2,000, the traveller is required to present both the goods and the invoice issued in accordance with paragraph (2)(b) in respect of the supply of those goods to an officer of the Commissioners assigned to a customs office in the State.

Deductions

Relief for stock-in-trade held at commencement of taxability

• (a) to keep detailed records of all stock-in-trade held at the commencement of the first taxable period for which he or she is deemed to be an accountable person (in this Regulation referred to as the “relevant day”), and

• (b) to so keep those records under the headings set out in paragraph (2).

• (2) The following are the headings for the purposes of paragraph (1):

• (a) stocks supplied to the accountable person concerned by other accountable persons and in respect of which, if supplied immediately before the relevant day, tax would be chargeable on the full amount of the consideration at the rate specified in section 46(1)(a) of the Act,

• (b) stocks supplied to the accountable person concerned by other accountable persons and in respect of which, if supplied immediately before the relevant day, tax would be chargeable on the full amount of the consideration at the rate specified in section 46(1)(c) of the Act,

• (c) agricultural produce supplied by flat-rate farmers, and

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

(3)(a) The total amount of the deduction to which the accountable person concerned is entitled in respect of stocks specified in subparagraph (a) or (b) of paragraph (2) is calculated by the formula:

(A - B) x C

100 + C

where—

A is the value of stocks specified in subparagraph (a) or (b) of paragraph (2), as the case may be, which is calculated on the basis of cost inclusive of tax, or market value, whichever is the lower,

B is the value of the stocks referred to in A in respect of which an invoice issued in accordance with Chapter 2 of Part 9 of the Act has been, or is likely to be, received on or after the relevant day, and

C is the percentage rate of tax, applicable on the day before the relevant day, as specified in section 46(1)(a) of the Act in respect of stocks referred to in paragraph (2)(a) and in section 46(1)(c) of the Act in respect of stocks referred to in paragraph (2)(b).

• (b) The deduction to which the accountable person concerned is entitled in respect of stocks specified in paragraph (2)(c) is determined by the formula:

(D - E) x F

where—

D is the value of stocks specified in paragraph (2)(c) which is calculated on the basis of cost inclusive of tax, or market value, whichever is the lower,

E is the value of the stocks referred to in D in respect of which an invoice issued in accordance with Chapter 2 of Part 9 of the Act has been, or is likely to be, received on or after the relevant day, and

F is the percentage rate of flat-rate addition applicable on the day before the relevant day, specified in section 86(1) of the Act.

• (4) A detailed record must be kept of the relief, claimed under this Regulation, which is included in a return made in accordance with section 76 or 77 of the Act.

Apportionment

“authorised officer” means a person authorised for the purposes of section 108 of the Act;

“final accounting year” means the period from the end of the previous accounting year to the date that a person ceases to be an accountable person;

“review period” means a period consisting of all the taxable periods that end during an accounting year.

(2)(a) Where an accountable person deducts, in accordance with sections 59(2) and 61 of the Act, a proportion of the tax borne or payable on the accountable person’s acquisition of dual-use inputs for a taxable period, then that proportion of tax deductible by that person for a taxable period is—

• (i) the proportion which—

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

• (II) has due regard to the range of that person’s total supplies and activities,

for that taxable period,

• (ii) the proportion which was calculated as being the proportion of tax deductible for the review period immediately preceding the taxable period in question,

• (iii) the proportion which that person estimates will—

• (I) correctly reflect the extent to which the dual-use inputs will be used for the purposes of that person’s deductible supplies or activities, and

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

for the review period in which that taxable period ends, or

• (iv) any other proportion of tax deductible which is determined in accordance with paragraph (2)(c).

• (b) Where an accountable person estimates a proportion of tax deductible for a taxable period in accordance with subparagraph (a)(iii), then the accountable person is required to submit, at the same time as the return required to be furnished in accordance with section 76 or 77 of the Act for the taxable period in question, details setting out the basis for that estimate to the office of the Commissioners that would normally deal with the examination of the records kept by that person in accordance with Chapter 7 of Part 9 of the Act.

• (c) If an authorised officer is satisfied that the proportion of tax deductible, estimated in accordance with subparagraph (a)(iii)—

• (i) does not correctly reflect the extent to which the dual-use inputs will be used for the purposes of the accountable person’s deductible supplies or activities, and

• (ii) does not have due regard to the range of that person’s total supplies and activities for the review period in which the taxable period ends,

then that officer may direct that accountable person to use a proportion of tax deductible in accordance with clause (i) or (ii) of subparagraph (a) or any other appropriate proportion which that officer agrees with that person.

(3)(a) An accountable person who deducts, in accordance with sections 59(2) and 61 of the Act, a proportion of the tax borne or payable on the accountable person’s acquisition of dual-use inputs is required, at the end of each review period—

• (i) to calculate the proportion of tax deductible for that review period, and

• (ii) to adjust, if necessary in accordance with subparagraph (b), the amount of tax deducted in that review period to ensure that it correctly reflects the extent to which the dual-use inputs were used for the purposes of that persons deductible supplies or activities and had due regard to the range of that person’s total supplies and activities for that review period.

• (b) Subject to subparagraph (c), any necessary adjustment under subparagraph (a) is required to be made by way of an increase or decrease, in accordance with the circumstances, in the amount of tax deductible by the accountable person, for—

• (i) the taxable period immediately following the end of the review period, or

• (ii) such later taxable period as is agreed between the accountable person and an authorised officer.

• (c) Where the adjustment under subparagraph (b) relates to the final accounting year of the accountable person concerned, then any necessary adjustment is required to be made by way of an increase or decrease in the amount of tax deductible for the taxable period in which that final accounting year ends. Any such adjustment is required to be made in the return to be furnished by the accountable person in accordance with section 76 or 77 of the Act in respect of the appropriate taxable period.

• (d) Any increase or decrease in the amount of tax deductible resulting from an adjustment of tax deductible that is made in accordance with this paragraph is to be disregarded in calculating the proportion of tax deductible for the review period in which that adjustment was made.

• (4) Where in accordance with paragraph (3) an accountable person adjusts the amount of tax deductible for a review period and, subsequent to that adjustment, it is established that that adjustment was incorrect, then section 114 of the Act does not apply to any additional liability for tax arising out of the correction of that adjustment, but only if—

• (a) that person, or any person acting on his or her behalf, did not act fraudulently or negligently in relation to that adjustment,

• (b) that person submitted, by the due date for submission of the return referred to in paragraph (3)(c), details setting out the basis on which the adjustment was made to the office of the Commissioners which would normally deal with the examination of the records kept by that person in accordance with Chapter 7 of Part 9 of the Act, and

• (c) that additional liability is not the subject of an assessment of tax under section 111 of the Act.

Capital Goods Scheme

• (a) the duration of that subsequent interval shall be a period of 12 months from the start date of that subsequent interval, and

• (b) in such circumstances, starting from and including the first day following the end of that subsequent interval, the remaining subsequent intervals in the adjustment period shall be consecutive periods of 12 months.

• (2) Notwithstanding paragraph (1), where the change in the end date of the accounting year results in that accounting year ending—

• (a) more than 12 months from the start date of the subsequent interval in which that change takes place, then the capital goods owner may extend the period of that subsequent interval to the end date of that accounting year, or

• (b) less than 12 months from the start date of the subsequent interval in which that change takes place, then the capital goods owner may extend the period of that subsequent interval to the end date of the following accounting year.

• (3) Where—

• (a) a capital good is transferred in accordance with section 64(10)(c) of the Act during a subsequent interval of the adjustment period for that capital good, and

• (b) the accounting year of the transferee differs from the accounting year of the transferor,

then—

• (i) that subsequent interval shall be a period of 12 months from the start date of that subsequent interval in which the transfer takes place, and

• (ii) in such circumstances, starting from and including the first day following the end of the subsequent interval during which the transfer takes place, the remaining subsequent intervals in the adjustment period shall be consecutive periods of 12 months.

• (4) Notwithstanding paragraph (3), in a case where the accounting year of the transferee ends—

• (a) more than 12 months from the start of the subsequent interval in which the transfer takes place, the transferee may extend that subsequent interval to the last day of that accounting year, or

• (b) less than 12 months from the start of the subsequent interval in which the transfer takes place, the transferee may extend that subsequent interval to the last day of the following accounting year.

Obligations of Accountable Persons

Registration

• (a) to register for tax by completing such form as is provided for that purpose by the Commissioners, and

• (b) to certify that the particulars shown on such form are correct.

• (2) Where a change occurs in any of the particulars furnished in the form referred to in paragraph (1), then—

• (a) the registered person,

• (b) if the registered person has died, his or her personal representative, or

• (c) if the registered person is a body of persons which is in liquidation or is otherwise being wound up, the liquidator or any other person who is carrying on the business during such liquidation or, as the case may be, winding up,

is required to furnish to the Commissioners particulars of the change within 30 days immediately following the date of the change.

• (3) A person who is registered in accordance with section 65 of the Act and who ceases—

• (a) to supply taxable goods or services, and

• (b) to make intra-Community acquisitions,

in the State is required to notify the Commissioners in writing of such cessation. Such written notification is required to be furnished by the end of the taxable period following that in which the cessation occurred.

• (4) The Commissioners may, by notice in writing, cancel the registration of a person who does not become, or who ceases to be, an accountable person, and such cancellation has effect as on and from the date of the notice or such other date as may be specified in the notice.

Invoices and other documents

• (2) The following particulars are specified for purposes of section 66(1) of the Act and are required to be included in every invoice issued, or deemed to be issued, by an accountable person:

• (a) the date of issue of the invoice,

• (b) a sequential number, based on one or more series, which uniquely identifies the invoice,

• (c) the full name, address and registration number of the person who supplied the goods or services to which the invoice relates,

• (d) the full name and address of the person to whom the goods or services were supplied,

• (e) in the case of a reverse charge supply, the value-added tax identification number of the person to whom the supply was made and an indication that a reverse charge applies,

• (f) in the case of a supply of goods, other than a reverse charge supply, to a person registered for value-added tax in another Member State, the person’s value-added tax identification number in that Member State and an indication that the invoice relates to an intra-Community supply of goods,

• (g) the quantity and nature of the goods supplied or the extent and nature of the services rendered,

• (h) the date on which the goods or services were supplied or, in the case of supplies specified in section 70(2) of the Act, the date on which the payment on account was made, in so far as that date differs from the date of issue of the invoice,

• (i) in respect of the goods or services supplied—

• (i) the unit price exclusive of tax,

• (ii) any discounts or price reductions not included in the unit price, and

• (iii) the consideration exclusive of tax,

• (j) in respect of the goods or services supplied, other than reverse charge supplies—

• (i) the consideration exclusive of tax per rate of tax, and

• (ii) the rate of tax chargeable,

• (k) the tax payable in respect of the supply of the goods or services, except—

• (i) in the case of a reverse charge supply, or

• (ii) where section 87(9) or 89(5) of the Act applies,

and

• (l) in the case where a tax representative is liable to pay the value-added tax in another Member State, the full name and address and the value-added tax identification number of that representative.

• (3) An invoice, credit note or debit note issued by an accountable person in accordance with Chapter 2 of Part 9 of the Act relating to an intra-Community supply of a new means of transport (within the meaning given by section 2 of the Act) is required to include the details necessary to identify the goods as a new means of transport.

• (4) Every invoice issued by an accountable person in accordance with section 67(1)(a) of the Act in respect of an increase in consideration is required to include the particulars specified in subparagraphs (a) to (f) of paragraph (2), and shall indicate—

• (a) the amount, exclusive of tax, of the increase in consideration for the supply,

• (b) the rate or rates of tax and the amount of tax at each rate appropriate to that increase in consideration, and

• (c) a cross-reference to every other invoice issued by the accountable person in respect of the total consideration for the supply.

• (5) Every credit note or debit note issued by a person in accordance with section 67(1)(b) or 67(2) of the Act is required to include the following particulars:

• (a) the date of issue of the note,

• (b) a number which uniquely identifies the note,

• (c) the full name, address and registration number of the person issuing the note,

• (d) the full name, address and registration number of the person to whom the note is being issued,

• (e) in the case of a supply to a person who is registered for value-added tax in another Member State, the person’s value-added tax identification number in that Member State,

• (f) the reason why the note is being issued and a cross-reference to the invoice which was issued for the supply in respect of which the consideration was reduced,

• (g) the amount of the consideration, exclusive of tax, in respect of which the note is being issued, and

• (h) the rate or rates of tax current when the invoice referred to in subparagraph (f) was issued and the amount of tax at each rate as appropriate to the consideration shown on the note.

• (6) Every invoice issued by an accountable person in accordance with section 87(9) or 89(5) of the Act is required to indicate that the margin scheme or auction scheme, as appropriate, has been applied.

• (7) An invoice issued by an accountable person in respect of a supply of margin scheme services within the meaning of section 88 of the Act is required to include the endorsement “margin scheme — travel agents”.

• (8) The amount of tax included on an invoice or other document issued in accordance with Chapter 2 of Part 9 of the Act is required to be expressed in euro.

(9)(a) Notwithstanding this Regulation, the Commissioners may allow invoices, credit notes, settlement vouchers or debit notes to be issued under simplified arrangements in accordance with Article 238 of the VAT Directive, but only if they include the following particulars:

• (i) the date of issue,

• (ii) identification of the supplier,

• (iii) identification of the type of goods or services supplied,

• (iv) the tax due or the information needed to calculate it, and

• (v) such other details as the Commissioners may require.

• (b) The Commissioners shall publish in the Iris Oifigiúil the details to be included in the documents referred to in subparagraph (a) and the circumstances under which they qualify for the simplified arrangements.

• (10) Any person issuing (other than by electronic means in accordance with Regulation 21(2)(a)) an invoice, credit note or debit note in accordance with Chapter 2 of Part 9 of the Act is required to keep an exact copy of it and references in this Regulation to any such document include references to that copy.

• (11) Where a document containing—

• (a) a schedule of dates on which rent in respect of a letting of immovable goods which is chargeable to tax is due (in this paragraph referred to as “due dates”) under a letting agreement, and

• (b) the particulars specified in paragraph (2),

is issued prior to the earliest of those due dates listed in that schedule, then that document shall be treated as an invoice issued in accordance with section 66(1) of the Act and shall be deemed to be so issued in respect of each rent payment listed in that schedule on the due date for that rent payment.

• (12) Where the rate of tax changes during the period covered by the document referred to in paragraph (11), then that document shall be amended to provide for the new rate of tax and the corresponding amounts of tax due for the periods following the date of that change in the tax rate.

Electronic invoicing

“advanced electronic signature” means an electronic signature which is—

• (a) uniquely linked to the signatory,

• (b) capable of identifying the signatory,

• (c) created using means that are capable of being maintained by the signatory under his or her sole control, and

• (d) linked to the data to which it relates in such a manner that any subsequent change of the data is detectable;

“electronic data interchange” means the electronic transfer, from computer to computer, of commercial and administrative data using an agreed standard to structure a message;

“electronic record” means a record required to be kept for the purposes of Chapter 7 of Part 9 or section 124(7) of the Act which is generated, transmitted and stored electronically;

“electronic signature” means data in electronic form which are attached to or logically associated with a message and which serve as a method of authentication;

“message” means an invoice, credit note, debit note, settlement voucher or document issued or received in accordance with Chapter 2 of Part 9 of the Act and which is transmitted electronically;

“signatory”, “signature-creation data”, “signature-creation device”, “signature-verification-data” and “signature-verification device” have the meanings assigned to them by the Electronic Commerce Act 2000 (No. 27 of 2000);

“trading partners” means any 2 persons engaged by prior agreement in the electronic exchange of messages;

“transmission” means the transfer or making available of a message to a trading partner by electronic means;

“unique identification number” means a sequential number which is based on one or more series and which uniquely identifies a message transmitted between trading partners.

(2)(a) A message issued or received by electronic means by an accountable person is deemed to be so issued or received for the purposes of section 66(2) of the Act if each such message—

• (i) is transmitted between trading partners using an electronic data interchange system which satisfies the requirements specified in subparagraphs (b) and (c), or

• (ii) is transmitted between trading partners using an advanced electronic signature and an associated system which satisfy the requirements specified in subparagraphs (b) and (c).

• (b) The electronic data interchange system or the advanced electronic signature and associated system used by the accountable person referred to in subparagraph (a) is required to be capable of—

• (i) producing, retaining and storing, and making available to an officer of the Commissioners on request, electronic records and messages in such form and containing such particulars as may be required in accordance with Chapters 2 and 7 of Part 9 and section 124(7) of the Act and Regulations made under the Act,

• (ii) causing to be reproduced on paper any electronic record or message required to be produced, retained or stored in accordance with Chapters 2 and 7 of Part 9 and section 124(7) of the Act and Regulations made under the Act,

• (iii) allocating a unique identification number for each message transmitted, and

• (iv) maintaining electronic records in such manner that allows their retrieval by reference to the name of a trading partner or the date of the message or the unique identification number of the message.

• (c) The electronic data interchange system or the advanced electronic signature and associated system used by the accountable person referred to in subparagraph (a) is required to—

• (i) preclude the repeated transmission of a message,

• (ii) preclude the omission of any message from the electronic record,

• (iii) verify the origin or receipt of a message by a trading partner, and

• (iv) guarantee the integrity of the contents of a message, or of an electronic record related to that message, during transmission and during the period provided for in Chapter 7 of Part 9 of the Act for the retention of records, invoices or any other documents specified in the Act or in Regulations made under the Act.

• (3) An accountable person may transmit messages by means other than those referred to in paragraph (2)(a) where—

• (a) he or she is satisfied that such messages are recorded, retained and transmitted in accordance with section 66(2) of the Act,

• (b) the requirements of subparagraphs (b) and (c) of paragraph (2) and paragraph (4) are met, and

• (c) he or she notifies the Commissioners accordingly.

(4)(a) An accountable person who issues or receives messages by electronic means in accordance with paragraph (2)(a) is required to—

• (i) retain and store such messages or copies of such messages, as appropriate, together with electronic records relating to those messages, and

• (ii) retain and store electronically the following data:

• (I) details of the form of encryption, electronic signature, signature creation data or device, signature verification data or device, or any other method used to ensure the integrity of the records and messages transmitted, retained and stored and the authenticity of their origin,

• (II) details of where and in what format the information required in accordance with subclause (I) is stored and how it can be accessed.

• (b) An accountable person who issues or receives messages by electronic means is required to—

• (i) provide details on request to an officer of the Commissioners on where and how an electronic record or message is stored on that person’s system and how it can be accessed by that officer,

• (ii) allow such access to electronic records or messages for inspection by an officer of the Commissioners at all reasonable times, and

• (iii) reproduce any such electronic record or message on paper on request by an officer of the Commissioners including details required to be retained and stored under subparagraph (a).

Invoicing provisions for flat-rate farmers

• (a) the date of issue of the invoice,

• (b) the full name and address of the flat-rate farmer who supplied the goods or services to which the invoice relates,

• (c) the full name, address and registration number of the person to whom the goods or services have been supplied,

• (d) in the case of a supply of agricultural produce or an agricultural service to a person registered for value-added tax in another Member State, the person’s value-added tax identification number in that Member State,

• (e) the quantity and nature of the goods supplied or the extent and nature of the services rendered,

• (f) the date on which the goods or services were supplied,

• (g) the consideration, exclusive of the flat-rate addition, for the supply, and

• (h) the rate and amount of the flat-rate addition appropriate to the consideration shown on the invoice.

• (2) Every invoice issued by a flat-rate farmer in respect of an increase in consideration in accordance with section 68(2)(a) of the Act is required to be acknowledged by that farmer and to include, in addition to the particulars specified in subparagraphs (a) to (d) of paragraph (1), the following particulars:

• (a) the amount, exclusive of the flat-rate addition, of the increase in consideration for the supply,

• (b) the rate and amount of the flat-rate addition, and

• (c) a cross-reference to every other invoice issued by the flat-rate farmer in respect of the total consideration for the supply.

• (3) Every farmer credit note or farmer debit note issued by a flat-rate farmer in accordance with section 68(2)(b) and (3) of the Act is required to include the following particulars:

• (a) the date of issue of the note,

• (b) the full name, address and registration number (if any) of the person issuing the note,

• (c) the full name, address and registration number (if any) of the person to whom the note is being issued,

• (d) in the case of a supply to a person who is registered for value-added tax in another Member State, the person’s value-added tax identification number in that Member State,

• (e) the reason why the note is being issued and a cross-reference to the invoice or settlement voucher which was issued for the supply in respect of which the consideration was reduced,

• (f) the amount of the consideration exclusive of the flat-rate addition in respect of which the note is being issued, and

• (g) the rate and amount of the flat-rate addition as appropriate to the consideration shown on the note.

• (4) Every settlement voucher issued in accordance with section 68(4) of the Act in respect of agricultural produce or agricultural services supplied to a registered person by a flat-rate farmer is required to be acknowledged by that farmer and to include the following particulars:

• (a) the date of issue of the settlement voucher,

• (b) the full name and address of the flat-rate farmer who supplied the produce or services to which the voucher relates,

• (c) the full name, address and registration number of the person to whom the produce or services have been supplied,

• (d) a description, including quantity, of the produce or services supplied,

• (e) the date on which the produce or services were supplied,

• (f) the consideration, exclusive of the flat-rate addition, for the supply, and

• (g) the rate and amount of the flat-rate addition appropriate to the consideration shown on the voucher.

• (5) A taxable dealer to whom section 12C of the repealed enactment applied is required to keep all invoices received in respect of agricultural machinery acquired by him or her and copies of all invoices in respect of agricultural machinery disposed of by him or her, in accordance with that section.

• (6) Any person issuing (other than by electronic means in accordance with Regulation 21) an invoice, credit note, settlement voucher or debit note in accordance with Chapter 2 of Part 9 of the Act is required to keep an exact copy of it and references in this Regulation to any such document include references to that copy.

Time limits for issuing invoices and credit notes

• (a) within the 15 days following the end of the month during which the goods or services were supplied, in the case of an invoice required to be issued in accordance with section 66(1) or 86 of the Act,

• (b) within the 15 days following the end of the month during which a supply of greenhouse gas emission allowances (within the meaning of section 16(2) of the Act) is made,

• (c) within 15 days following the end of the month during which a supply of services consisting of construction operations (to which section 16(3) of the Act applies) is made,

• (d) within the 15 days following the end of the month during which the qualifying accommodation (within the meaning of section 60(1) of the Act) was supplied, in the case of a document required to be issued in accordance with section 66(5) of the Act,

• (e) within the 15 days following the day on which the increased consideration is paid or the day on which the increase in consideration is agreed between the parties, whichever day is the earlier, in the case of an invoice required to be issued in accordance with sections 67(1)(a) or 68(2) of the Act,

• (f) in the case of a credit note required to be issued in accordance with section 67(1)(b) or 68(2)(b) of the Act—

• (i) where a decrease is due to a discount, within the 15 days of the date of receipt of the money to which the discount relates, or

• (ii) in any other case, within the 15 days of the day on which the decrease in consideration is agreed between the parties,

and

• (g) within the 15 days following the end of the month during which the payment was received, in the case of an invoice required to be issued in accordance with section 70(2) of the Act in respect of a payment for a supply of goods or services before the supply is completed.

Returns

• (a) shall complete such form as is issued for that purpose by the Commissioners in respect of the taxable period concerned, and

• (b) shall sign a declaration on the form to the effect that the particulars shown on it are correct,

and, if that form provides for the inclusion of supplementary trading details in respect of any period, those details are deemed to be part of the return in respect of the taxable period concerned.

• (2) Where an accountable person is authorised to furnish a return in accordance with section 77 of the Act, then that person, or another person acting under that accountable person’s authority—

• (a) shall complete such form as is issued for that purpose by the Commissioners, and

• (b) shall sign a declaration on the form to the effect that the particulars shown on it are correct.

• (3) The obligation of an accountable person to make a return is fulfilled by that person if the information required in such a return is transmitted electronically in accordance with Chapter 6 of Part 38 of the Taxes Consolidation Act 1997 (No. 39 of 1997).

Determination of tax due by reference to moneys received

“moneys received basis of accounting” means the method of determining, in accordance with section 80(1) of the Act, the amount of tax which becomes due by an accountable person;

“turnover from taxable supplies”, in relation to any period, means the total of the amounts on which tax is chargeable for that period at any of the rates specified in section 46(1) of the Act.

• (2) For the purposes of section 80(1)(a) of the Act and this Regulation, supplies to persons who are not registered persons shall be deemed to include any supply to an accountable person where the accountable person is not entitled to claim, under Chapter 1 of Part 8 of the Act, a full deduction of the tax chargeable in relation to that supply.