Value-Added Tax & VAT on Property, Finance Act 2016
- Chapter 1 Introduction
- Chapter 2 Taxable Persons and Accountable Persons
- 2.1 Introduction
- 2.2 Accountable Persons
- 2.3 Electing to be an Accountable Person
- 2.4 Persons Making Intra-Community Acquisitions
- 2.4.1 Intra-Community acquisitions - persons without an establishment in Ireland
- 2.4.2 Intra-Community acquisitions - farmers, fishermen and racehorse trainers
- 2.4.3 Intra-Community acquisitions - Public Bodies (the State, local authorities and statutory bodies)
- 2.4.4 Intra-Community acquisitions - private individuals and new means of transport
- 2.4.5 Intra-Community acquisitions - excisable products
- 2.5 Accountable Persons - Supply and Installation of Goods
- 2.6 Accountable Person - Certain Supplies of Gas, of Electricity and of Heat or Cooling Energy
- 2.7 Accountable Persons - Reverse Charge Cross-Border Services
- 2.7.1 General rule - business to business supplies of services
- 2.7.2 Cultural, artistic, entertainment or similar services
- 2.8 Accountable Persons - Domestic Reverse Charge
- 2.8.1 NAMA
- 2.8.2 Construction services
- 2.8.3 Greenhouse gas emissions - carbon credits
- 2.8.4 Scrap metal dealers
- 2.9 Accountable Persons - Premises Providers
- 2.9.1 Premises provided to mobile traders
- 2.9.2 Premises provided to promoters
- 2.9.3 Failure to comply
- 2.9.4 Dances
- 2.9.4.1 Dances on licensed premises
- 2.9.4.2 Dances on premises other than licensed premises
- 2.10 Clubs and Associations
- 2.10.1 Introduction
- 2.10.2 Clubs not-for-profit
- 2.10.3 Commercial clubs
- 2.10.4 Commercial and non-profit – distortion of competition
- 2.10.5 Input VAT
- 2.10.6 Miscellaneous
- 2.11 Public Bodies
- 2.12 Not-for-Profit Organisations
- 2.13 Partnerships/Joint Ventures
- 2.14 Insolvent Situations
- 2.15 Agents
- 2.15.1 Introduction
- 2.15.2 Disclosed intermediaries
- 2.15.3 Undisclosed intermediary
- 2.15.3.1 Undisclosed intermediary in the supply of services
- 2.15.3.2 Undisclosed intermediary in the supply of goods
- 2.15.3.3 Undisclosed intermediary - effect of deemed buy/sell
- 2.16 Foreign Traders who are Taxable Persons in Ireland
- 2.17 Groups
- Chapter 3 VAT Groups
- 3.1 Introduction
- 3.2 Conditions for VAT Grouping
- 3.2.1 Revenue discretion
- 3.2.2 Who can be a VAT group member?
- 3.2.3 Closely bound
- 3.2.4 Effective administration of the tax
- 3.3 Applications for VAT Grouping
- 3.4 Effect of VAT Grouping
- 3.4.1 Supplies to Third parties
- 3.4.2 Impact on certain cross-border charges
- 3.4.3 VIES and INTRASTAT returns
- 3.4.4 VAT Group and Section 56 VATCA (VAT 13A Authorisation)
- 3.4.5 VAT groups and turnover limits
- 3.4.6 VAT groups and Dual use apportionment
- 3.4.7 VAT Groups and Waivers of Exemption
- 3.5 Transactions Between VAT Group Members
- 3.6 Exiting a VAT Group and Cancellation of a VAT Group
- Chapter 5 Supply of Goods
- 5.1 Introduction
- 5.2 The Charge to VAT
- 5.3 Supply of Goods
- 5.3.1 Transfer of ownership
- 5.3.2 Auctioneers/Agents
- 5.3.3 Hire-purchase agreements
- 5.3.3.1 Subsequent disposal after repossession
- 5.3.4 Seizure and compulsory purchase
- 5.3.5 Self-supplies
- 5.3.5.1 Transfer of goods to an exempt or partially exempt activity
- 5.3.5.2 Use of goods for non-business purpose or disposal free of charge
- 5.3.6 Transfers from business to other Member State
- 5.3.7 Gifts and samples
- 5.3.8 Supplies of power
- 5.3.9 Chain supplies
- 5.3.10 Deemed non-supplies
- 5.3.10.1 Repossession
- 5.3.10.2 Appointment of a receiver
- 5.3.10.3 Section 22(2) provides that where a person referred to as an “owner”
- 5.3.10.4 Section 20(3) VATCA - disposal by insurance company
- 5.3.11 Transfer of a business
- 5.3.11.1 Transfer of the equity in a company
- 5.3.11.2 The transferor
- 5.3.11.3 The transferee
- 5.3.11.4 Transfer of the assets of a business
- 5.3.12 Supplies under warranty
- 5.3.12.1 Standard warranty
- 5.3.12.2 Extended warranty
- 5.3.13 Liquidators and receivers
- 5.3.13.1 Sale of assets
- 5.3.13.2 Carrying on a business
- 5.3.14 Alcohol products
- 5.3.14.1 Last supply deemed to be the only taxable supply
- 5.3.14.2 Date when VAT is payable
- 5.3.14.3 Intra-Community acquisition
- 5.3.14.4 Imports
- 5.3.14.5 Taxable amount includes excise duty payable
- 5.3.14.6 Excise duty payment rules apply to VAT payment
- 5.3.15 Summary – Alcohol products
- 5.3.15.1 Technical note
- Chapter 6 Intra-EU Supplies of Goods
- 6.1 Introduction
- 6.2 Place of Supply of Goods
- 6.2.1 Goods which are transported
- 6.2.2 Installation and assembly
- 6.2.3 Goods not dispatched or transported
- 6.2.4 Supplies on board aircraft, vessels or trains travelling within the EU
- 6.2.5 Distance selling
- 6.3 Intra-Community Acquisitions of Goods
- 6.4 Place where Intra-Community Acquisition Occurs
- 6.5 Deeming Provisions
- 6.6 Importation into other Member States by Irish Unregistered Persons
- 6.7 Triangulation
- 6.8 Intra-Community Supplies
- Chapter 7 Trade with Non-EU Countries
- 7.1 General
- 7.2 Exports
- 7.3 Retail Export Scheme
- 7.4 Importation
- 7.4.1 General
- 7.4.2 Rates of VAT on imports
- 7.4.3 Valuation
- 7.4.4 Clearing goods through customs
- 7.4.5 Single Administrative Document (SAD)
- 7.4.6 Direct Trader Input (DTI)
- 7.4.7 Economic Operators’ Registration and Identification System (EORI)
- 7.4.8 Input VAT recovery
- 7.4.9 Section 56 authorisation holders
- 7.5 Deferred Payment
- 7.6 Reliefs from Import VAT
- 7.6.1 General
- 7.6.2 Transfer of residence
- 7.6.3 Transit relief
- 7.6.4 Postal imports
- 7.6.5 De minimis limits
- 7.6.6 Other reliefs
- 7.7 Customs Special Procedures
- Chapter 8 Supply of Services
- 8.1 Introduction
- 8.2 Supply of a Service
- 8.3 Link between Supply and Consideration
- 8.4 The Meaning of “Established”/“Establishment”
- 8.5 Transfer of Business – Services
- 8.6 Self-Supply of Services
- 8.7 Catering Services
- 8.8 Undisclosed Agent
- 8.9 Services of Barristers
- 8.10 Legal Services Supplied to Insurers
- 8.11 Exempt Services
- 8.12 Supplies of Power
- 8.13 Place of Supply of Services
- Chapter 9 Cross Border Supplies of Services
- 9.1 Introduction
- 9.2 Services Supplied from Ireland to Businesses (B2B) and to Consumers (B2C) Located Outside of Ireland
- 9.2.1 The general place of supply rule
- 9.2.2 Exceptions to the general rule for the place of taxation for B2B & B2C services
- 9.2.2.1 Section 34(c) - Supply of services connected to immovable property
- 9.2.2.2 Section 34(d) - Passenger transport services
- 9.2.2.3 Section 34(g) - Admission to cultural, artistic, sporting, scientific, and educational and entertainment or similar services supplied to taxable persons (B2B)
- 9.2.2.4 Section 34(ga) - services relating to cultural, artistic, sporting, scientific, and educational and entertainment or similar services supplied B2C
- 9.2.2.5 Section 34(i) - Restaurant and catering services (B2B) & (B2C)
- 9.2.2.6 Section 34(j) - Restaurant and catering services (B2B) & (B2C) for consumption on board a ship, plane or train while travelling within the Community
- 9.2.2.7 Section 34(k) - Hiring out of means of transport
- 9.2.3 Use and enjoyment provisions
- 9.2.4 B2C supplies to customers located outside the EU (further exceptions to general rule)
- 9.2.5 B2C services via an intermediary
- 9.3 Services Received in Ireland from Outside the State
- 9.4 Telecommunications, Broadcasting and Electronic Services (“TBE Services”)
- 9.5 Refund Mechanisms
- Chapter 10 Registration
- 10.1 Introduction
- 10.2 Accountable Persons
- 10.3 Applying for Registration
- 10.4 Persons who Supply Taxable Goods and Services
- 10.5 Thresholds
- 10.6 Foreign Traders with no Establishment in Ireland
- 10.7 Performers – Cultural, Artistic, Entertainment and Similar Services
- 10.8 Consignment Stock
- 10.9 Farmers and Fishermen
- 10.10 Racehorse Training
- 10.11 Public Bodies
- 10.12 Electing to Register
- 10.13 Connected Persons
- 10.14 Pre-trading Registration
- 10.15 De-registering
- 10.16 Persons who Make Intra-Community Acquisitions
- 10.16.1 Intra-Community acquisitions – threshold
- 10.16.2 Intra-community acquisitions – non-established persons
- 10.16.3 Effect of registering for intra Community acquisitions on taxable status
- 10.16.4 Farmers and racehorse trainers
- 10.16.5 Public Bodies
- 10.16.6 Input credit
- 10.17 Reverse Charge Services
- 10.18 Group Registration
- 10.19 Administration Issues
- Chapter 12 Deductible VAT
- 12.1 Introduction
- 12.2 Taxable Activities Giving Rise to VAT Deduction
- 12.3 The Concept of a ‘Cost Component’ in the Recovery of Input VAT
- 12.4 Stock-in-Trade
- 12.5 Intending Traders
- 12.6 Abortive Supplies
- 12.7 Qualifying Activities
- 12.8 Non-Deductible Tax
- 12.9 Apportionment
- 12.10 Recast VAT Directive
- 12.11 Repayment of VAT
- 12.12 Pension Funds
- 12.13 Repayment of VAT to Foreign Businesses
- 12.14 The VAT 60A Procedure
- 12.15 Unregistered Traders and Refund Orders
- 12.15.1 VAT 60E refund procedure
- 12.15.2 Refund orders
- 12.15.2.1 Farmers
- 12.15.2.2 Fishermen
- 12.15.2.3 Touring coaches
- 12.15.2.4 Donated research equipment
- 12.15.2.5 Radios for the blind
- 12.15.3 Disabled persons and equipment for disabled persons
- 12.15.4 Mobile homes etc.
- 12.15.5 Sea rescue craft, equipment, etc
- 12.15.6 Hospitals
- 12.15.7 Humanitarian goods for export
- 12.15.8 Eurocontrol purchases
- 12.15.9 European Space Agency
- Chapter 13 Time of Supply
- 13.1 Introduction
- 13.2 Time of Supply – Goods
- 13.3 Time of Supply – Immovable Goods
- 13.3.1 Time of Supply - Intra-Community Acquisitions, General
- 13.3.2 Time of Supply - Intra-Community Acquisitions, New means of Transport
- 13.3.3 Time of Supply - Intra-Community Acquisition of Excisable Goods
- 13.4 Time of Supply – Services
- 13.5 Payments in Advance of a Supply of Services and Goods
- 13.6 Continuous Supplies of Goods and Services
- 13.7 Vouchers and Coupons
- 13.8 Time of Supply and VAT Rates
- Chapter 14 Amount on Which VAT is Chargeable
- 14.1 Introduction
- 14.2 Main Rule
- 14.3 Special Provisions
- 14.3.1 Intra-Community acquisitions
- 14.3.2 Consideration not in money; trade-in
- 14.3.3 Market value imposed
- 14.3.4 Excess consideration
- 14.3.5 Adjustments of consideration, bad debts etc.
- 14.3.6 Self-supplies, Seized Goods
- 14.3.7 Excise duty
- 14.3.8 Transfer of own business goods abroad
- 14.3.9 Hire purchase agreement
- 14.3.10 Reverse charge services
- 14.3.11 Intra-Community acquisitions in more than one Member State
- 14.3.12 Two-thirds rule
- 14.3.12.1 General
- 14.3.12.1 General
- 14.3.12.2 Principal contractors
- 14.3.12.3 Construction services
- 14.3.13 Property and construction
- 14.3.14 Exchange rates
- 14.4 Vouchers and Coupons
- 14.4.1 Gift vouchers etc.
- 14.4.2 Consideration to be fixed
- 14.4.3 Vouchers – resale
- 14.4.4 Coupons and vouchers – sold at a discount
- 14.4.5 Gifts in exchange for tokens
- 14.4.6 “Money Off” coupons
- 14.5 Catering Services
- Chapter 15 Rates of Tax and Exemptions from VAT
- 15.1 Introduction
- 15.2 History and Basis for the Rates
- 15.3 Rates of VAT
- 15.4 Rates of VAT - Interpretation
- 15.5 Rates of VAT – Application
- 15.5.1 The “package rule”
- 15.5.2 The two-thirds rule
- 15.5.3 Contract work
- 15.5.4 Goods made up from materials supplied
- 15.5.5 “Schedule 5 Goods” - Works of art, antiques and collector’s items
- 15.5.6 Letting of plant and machinery
- 15.6 Exemptions
- 15.7 Determinations
- 15.8 Power to Vary Schedules
- Chapter 16 Records, Invoices and Other Documents
- 16.1 Introduction
- 16.2 Obligation to Keep Records
- 16.3 Retention of Records
- 16.4 Location of Records
- 16.5 Invoices and Other Documents
- 16.5.1 Introduction
- 16.5.2 Invoicing obligations: General
- 16.5.3 Invoicing obligations: Electronic invoices
- 16.5.4 Supplementary invoices
- 16.5.5 Credit notes and debit notes
- 16.6 Issue of Invoices by Customer or Agent of the Supplier
- 16.7 “Flat-rate” Farmers and Invoicing Obligations
- 16.8 Details on Invoices
- Chapter 18 Legislative Interpretation and Administration Issues
- 18.1 Introduction
- 18.2 Legislative Interpretation
- 18.3 List of Statutory Definitions
- 18.4 Regulations
- 18.4.1 Power to make regulations
- 18.4.2 Differentiation
- 18.4.3 Consent of Minister
- 18.4.4 Dáil approval
- 18.5 Time Limits
- 18.5.1 General rule
- 18.5.2 Limit on proceedings against personal representatives
- 18.5.3 Limits on estimates and assessments
- 18.5.4 Limits on estimates against personal representatives
- 18.6 Officer Responsible in case of Body of Persons
- 18.7 Requirement of Security
- Chapter 20 Agriculture and Fishing
- 20.1 Introduction
- 20.2 Farming
- 20.2.1 Farmers who are obliged to register for VAT
- 20.2.2 Farmers who may elect to register for VAT
- 20.2.3 Potential claw-back on cancellation of an election
- 20.2.4 Farmers who are not registered for VAT – “flat-rate farmers”
- 20.2.4.1 Flat-rate addition
- 20.2.4.2 Refunds on farm building work, etc.
- 20.2.5 Provision of agricultural services
- 20.2.5.1 Milk quotas
- 20.2.5.2 Milk production partnerships
- 20.2.6 Sales of horses by farmers
- 20.2.7 Farmers providing racehorse training services
- 20.2.8 Farmers and intra-Community acquisitions
- 20.3 Freshwater Fishermen
- 20.4 Sea Fishermen
- Chapter 21 Margin and Other Special Deduction Schemes
- 21.1 Introduction
- 21.2 Margin Scheme for Second-hand Goods
- 21.2.1 Introduction
- 21.2.2 Definitions
- 21.2.3 The scheme
- 21.2.4 VAT rates
- 21.2.5 Invoicing
- 21.2.6 Margin scheme in cross-border scenarios
- 21.2.6.1 Transactions involving non-EU jurisdictions
- 21.2.6.2 Transactions involving EU member States
- 21.2.7 Time of supply
- 21.2.8 Subsequent supplies of margin scheme goods
- 21.2.9 Special rule for motor vehicles declared for registration
- 21.2.10 Special arrangements for low value items (globalisation)
- 21.3 Special Scheme for Auctioneers
- 21.3.1 Introduction
- 21.3.2 The scheme
- 21.3.3 VAT rates
- 21.3.4 Auctioneers scheme in cross border scenarios
- 21.3.4.1 Transactions involving non-EU jurisdictions
- 21.3.4.2 Transactions involving EU Member States
- 21.3.5 Subsequent supplies of auction scheme goods
- 21.4 Special Scheme for Means of Transport Supplied by Taxable Dealers
- 21.5 “Old” Special Scheme for Means of Transport Supplied by Taxable Dealers
- 21.5.1 The scheme
- 21.5.2 Invoicing
- 21.5.3 Special scheme in cross border scenarios
- 21.5.3.1 Transactions involving non-EU jurisdictions
- 21.5.3.2 Transactions involving EU Member States
- 21.5.4 Specific measures
- 21.5.5 Special scheme for cars registered by motor dealers
- 21.5.6 Transitional measures
- 21.6 Special Scheme for Agricultural Machinery
- 21.7 “Old” Special Scheme
- 21.7.1 The scheme
- 21.7.2 Subsequent supply of the machinery by the taxable dealer
- 21.7.3 Transitional measures
- 21.8 Travel Agents Margin Scheme (TAMS)
- 21.8.1 Introduction
- 21.8.2 TAMS – When it applies
- 21.8.3 The margin
- 21.8.4 In-house supplies
- 21.8.5 Travel agents supplying margin scheme and other goods or services
- 21.8.6 VAT rates
- 21.8.7 Simplified accounting arrangements
- 21.8.8 Input Deductions
- 21.8.9 Invoicing and Records
- 21.8.10 Qualifying Conferences
- 21.8.11 Miscellaneous
- 21.8.12 Concession
- 21.8.13 Intermediary Services
- Chapter 22 Foreign Traders
- 22.1 Introduction
- 22.2 Supplies from Stocks of Goods Held in Ireland
- 22.3 Call Off Stock – Special Provisions
- 22.4 Distance Sales into Ireland
- 22.5 Mobile Traders
- 22.6 Supply and Installation of Goods in Ireland
- 22.7 Gas, Electricity, Heat or Cooling Energy
- 22.8 Work on Immovable Goods
- 22.9 Work on, or Valuation of, Movable Goods
- 22.10 Cultural, Artistic, Sporting, Scientific, Educational, Entertainment and Similar Services
- 22.11 Electronically Supplied Services
- 22.12 Transport Services
- 22.13 Non-EU Based Supplier Hiring out Goods Used and Enjoyed in Ireland
- 22.14 Non-EU Based Trader Supplying Telecommunications, Radio or Television Broadcasting Services
- 22.15 Repayment to Foreign Businesses
- 22.16 VAT 60A Procedure
- Chapter 23 Asset Finance
- 23.1 Introduction
- 23.2 Types of Asset Finance
- 23.3 Hire Purchase – General
- 23.4 VAT Treatment Prior to 1 May 2007
- 23.5 VAT Treatment Post Finance Act 2007
- 23.5.1 Accounting and invoicing post Finance Act 2007
- 23.5.2 Repossessions post 1 May 2007
- 23.5.3 Bad debt and early termination relief on or after 1 May 2007
- 23.5.3.1 Regulation 10(5) – Bad debt relief for a supply made under a hire purchase agreement
- 23.5.3.2 Regulation 10(7) – Early determinations
- 23.6 Leasing
- 23.6.1 Leasing – VAT invoicing and accounting
- 23.6.2 Repairs and insurance
- 23.6.3 International leasing
- 23.6.4 Sale and leaseback transactions
- 23.6.5 Terminations, early settlements and disposals
- 23.7 Loan Financed Acquisitions
- Chapter 26 Revenue Audits
- 26.1 Introduction
- 26.2 Notification of the Audit
- 26.3 Postponing an Audit
- 26.4 Preparing for a Revenue Audit
- 26.5 Materiality
- 26.6 Making a Disclosure
- 26.7 Penalties
- 26.8 Mitigation of Penalties
- 26.9 Penalties where Exchequer has Suffered no Net Loss “No Loss”
- 26.10 Interest
- 26.11 Publication
- 26.12 Prosecution
- 26.13 Revenue Offences
- 26.14 Entitlement to a Review
- Chapter 27 Revenue Powers
- 27.1 Introduction
- 27.2 Power to Inspect Records
- 27.3 Power to Make Regulations
- 27.4 Power to Determine VAT Rates and Exemptions
- 27.5 Power to Raise Assessments, Estimate Liability, and to Refuse Claims
- 27.6 Power to Seize Goods
- 27.7 Power to Impose a Value
- 27.8 Power to Hold a Person Other than the Trader Liable for VAT
- 27.9 Power to Require Security
- 27.10 Power to Reject an Expression of Doubt
- 27.11 Power to Admit to a VAT Group, Remove from a VAT Group and Compulsorily VAT Group
- 27.12 Compulsory Registration of Persons Providing Sports Facilities
- 27.13 Power to Authorise a VAT Refunding Agent
- 27.14 Power to Refuse to Treat a Person as an Accountable Person
- 27.15 Notice of Requirement to Furnish Certain Information
- 27.16 Notice of Requirement to Issue a Document
- 27.17 Joint and Several Liability for Tax
- 27.18 Power to Notify and Publish the Cancellation of a VAT Number
- Chapter 28 Estimates and Assessments of Tax Due
- Chapter 29 Interest and Penalties
- 29.1 Introduction
- 29.2 Interest
- 29.2.1 Interest on late payment
- 29.2.2 Refunds over-claimed
- 29.2.3 Direct debit arrangements
- 29.2.4 Ministerial Refund Orders
- 29.2.5 Interest on estimates
- 29.2.6 Interest on refunds of tax
- 29.3 Letter of Expression of Doubt
- 29.3.1 “Expression of doubt” facility
- 29.3.2 The letter
- 29.3.3 Time limits
- 29.3.4 Contents of letter
- 29.3.5 Benefits of letter of expression of doubt
- 29.3.6 Expression of doubt not considered to be genuine
- 29.3.7 Appeal of a notification of a non-genuine expression of doubt
- 29.3.8 Notification of a non-genuine expression of doubt
- 29.3.9 Acknowledgement of receipt of expression of doubt
- 29.3.10 Persons not registered for VAT
- 29.3.11 Expression of doubt – non-application of interest
- 29.4 Fixed Penalties - Generally
- 29.4.1 Non compliance
- 29.4.2 Unauthorised charge of tax
- 29.4.3 Unauthorised flat-rate charge
- 29.4.4 Body of persons
- 29.4.5 Obstruction of an officer
- 29.4.6 Obstruction of a person authorised to inspect
- 29.4.7 Supply without security
- 29.4.8 A person ceasing to be a qualifying person for the purpose of section 56(1)
- 29.4.9 Non-Compliance with Mistrial refund orders
- 29.4.10 Transitional provisions
- 29.4.11 Failure to provide information
- 29.4.12 Publication of names of tax defaulters
- 29.5 Penalties - Deliberately or Carelessly Breaches VAT Obligations
- 29.6 Revenue Audit and other Compliance Interventions
- Chapter 30 Appeals
- 30.1 Introduction
- 30.2 Matters that can be Appealed
- 30.2.1 Appeals against estimates, assessments and security payments
- 30.2.2 Determination of a VAT rate
- 30.2.3 Refusal of an expression of doubt
- 30.2.4 Overstatement of VAT on invoices and understatement of VAT on credit notes
- 30.2.5 Unregistered trader issuing VAT invoice
- 30.2.7 Compulsory registration of persons providing sports facilities
- 30.2.8 Imposition of market value on transactions between connected parties
- 30.2.9 VAT refunding agents
- 30.2.10 Premises providers to mobile traders or concerts/events
- 30.2.11 A refusal of a refund application for foreign VAT
- 30.2.12 Any charge to tax in accordance with regulations
- 30.2.13 A refusal of a claim to repayment of VAT
- 30.2.14 Refusal to be treated as an accountable person
- 30.3 VAT Appeals - New Process and Procedures
- 30.4 Statement of Case for High Court
- 30.5 High Court - Judicial Review
- 30.6 Beyond the High Court
- 30.7 European Court of Justice
- 30.8 EU Commission
- Appendix I Historic VAT Rates
- Appendix II Exempt Activities
- Appendix III Zero-Rated Goods and Services
- Appendix IV Goods and Services Chargeable at the Reduced Rate
- Appendix V List of Multipliers
- Appendix VI Distance Selling Thresholds
- Appendix VII List of VAT Number Formats
- Appendix VIII Form VAT 3 – Paper Version
- Appendix IX Return of Trading Details – Paper Version
- Appendix X VAT Form VAT 60A
- Appendix XI VAT Form VAT 60E
- VAT on Property
- How to use this Book
- TABLE OF CASES
- TABLE OF STATUTES
- A Note on Property Law for Beginners
- Chapter 2 VAT on the Sale of a Property
- PART I – THE FOUR PRELIMINARY TASKS
- 2.3 The Four Preliminary Tasks
- 2.3.1 First preliminary task: is the seller acting in the course of business for VAT purposes?
- 2.3.2 Second preliminary task: find out is there a “sale” for VAT purposes
- 2.3.3 Third preliminary task: find out if the sale is subject to the standard rules or the transitional rules
- 2.3.4 Fourth preliminary task: find out if you are selling a “building” or “a property other than a building”
- 2.3.5 Summary of Part I
- PART II – THE FIVE CATEGORIES OF EXEMPTION
- 2.4 The Five Categories of Exemption
- 2.4.1 Exempt Category 1: “Property that has not been developed in the last 20 years”?
- 2.4.2 Exempt Category 2: “Old Buildings”
- 2.4.3 Exempt Category 3: “Used Second-hand Building”
- 2.5 Sale of property other than buildings
- 2.5.1 Exempt Category 1: “property that has not been developed in the last 20 years”
- 2.5.2 Exempt Category 4: “Old Property”?
- 2.5.3 Exempt Category 5: “Used Second-hand Property”?
- 2.6 Partially Completed Buildings or Properties
- 2.7 Compare and Contrast the Five Exempt Categories
- 2.8 Worked Examples of How VAT Applies to the Sale of an Ownership Interest
- PART III – THE OPTION TO TAX AN EXEMPT SALE
- 2.9 The Option to Tax an Exempt Sale
- 2.9.1 The option
- 2.9.2 Accounting for VAT on an opted sale
- 2.9.3 To opt, or not to opt, that is the question
- 2.9.4 Tax tip, tax saving
- 2.9.5 Anomaly
- 2.10 Stop
- PART IV – THE KEY DEFINITIONS
- 2.11 “Completed”
- 2.12 “Occupied”
- 2.13 “Development”
- 2.13.1 Planning permission
- 2.13.2 Area developed
- 2.13.3 Relevance of whether property is developed or not
- 2.13.4 The Emmen case
- 2.13.5 Section 639 of the Taxes Consolidation Act 1997
- 2.14 “Significant Development”
- 2.15 “Buildings”
- 2.16 “Freehold equivalent”
- PART V – SPECIFIC RULES FOR SPECIFIC TRANSACTIONS
- 2.17 Sales of Residential Buildings by Developers or Persons Connected with Developers
- 2.17.1 Why was this rule introduced?
- 2.17.2 The impact of letting the property on the developer’s VAT recovery
- 2.17.3 What is the relief?
- 2.17.4 Does the relief apply to properties completed before 1 July 2008?
- 2.18 Connected Development Contracts: Anti-avoidance Law on Sale of Undeveloped Land
- 2.19 The Sale of a Freehold in Connection with the Transfer of a Business
- 2.19.1 Transfer of Business and VAT recovery on costs
- 2.19.2 Transfer of Business (“TOB”) relief can apply to the sale of property
- 2.20 The Sale of an Ownership Interest Within a VAT Group
- 2.21 The “Sale” of an Ownership Interest by Compulsory Purchase or by Seizure
- 2.22 The Mortgage and Repossession of an Ownership Interest
- 2.23 Options to Buy
- 2.24 Sale of a Private Asset by a Registered Person
- 2.25 Rent-to-Buy Schemes
- 2.26 The Forfeiture of the Deposit on Failure to Complete
- 2.27 The Self-supply of an Ownership Interest
- 2.28 Transfer to Private Use
- 2.29 Gifts
- PART VI – ACCOUNTING FOR VAT ON THE SALE
- 2.30 The Amount on which VAT is Charged on the Sale of an Ownership Interest
- 2.30.1 The majority of sales
- 2.30.2 Stamp duty
- 2.30.3 Market price
- 2.30.4 The interaction between the market value rules and the Capital Goods Scheme
- 2.31 The Rate at which VAT is Charged on the Sale of an Ownership Interest
- 2.31.1 The majority of sales
- 2.31.2 Composite or multiple supplies
- 2.31.3 What is a composite supply?
- 2.31.4 What is a multiple supply?
- 2.31.5 Apportioning the consideration
- 2.31.6 Composite and multiple supplies case law
- 2.31.7 Where are we now with composite and multiple supplies?
- 2.32 The Place of Supply – The Country in which the Sale of an Ownership Interest is Charged to VAT
- 2.33 The Time when the Charge to VAT on the Sale of an Ownership Interest Arises – The Triggering Event
- 2.34 The Contract for the Sale of an Ownership Interest
- Chapter 3 Lettings
- PART I – THE VAT TREATMENT OF LETTINGS
- 3.2 An Overview of the VAT Treatment of Lettings
- 3.3 The Two-Step Approach
- 3.4 A More Detailed Look at Step 1 – Determining the Correct VAT Treatment to be Applied to a Letting
- 3.5 A More Detailed Look at Step 2 – Applying the Correct VAT Treatment to the Letting
- 3.5.1 Applying the standard rules
- 3.5.2 Applying the transitional rules
- 3.5.3 Applying the waiver of exemption
- 3.6 Remember the Capital Goods Scheme Implications of Granting a Letting
- 3.7 Summary
- PART II – A MORE DETAILED LOOK AT LETTINGS
- 3.8 The Exemption for Lettings
- 3.9 The Option to Tax
- 3.9.1 How do you opt to tax?
- 3.9.2 Remember the VAT clause!
- 3.9.3 Is including a VAT clause sufficient to exercise the option?
- 3.9.4 When can you exercise an option?
- 3.9.5 Can you backdate an option?
- 3.9.6 The deemed option to tax
- 3.9.7 When can you not exercise an option to tax?
- 3.9.7.1 Residential lettings
- 3.9.7.2 The prohibition on the option to tax on lettings to “connected” tenants or where the landlord is connected to the occupant of the property
- 3.9.7.3 Lettings where the landlord is not connected to the tenant but is connected to the occupant
- 3.9.8 The option to tax can be exercised if the connected tenant/occupant is entitled to recover at least 90% of the VAT charged on the rent
- 3.9.9 What does “connected” mean
- 3.9.10 Terminating the option to tax
- 3.9.11 Automatic termination of the option to tax – connected lettings
- 3.9.11.1 The termination of the option to tax because the landlord becomes connected to the tenant
- 3.9.11.2 Termination because the landlord occupies or becomes connected to the person who occupies the property and the Revenue concession
- 3.9.11.3 What happens when a tenant/occupant falls below the 90% VAT threshold after a lease has commenced?
- 3.9.11.4 The option to tax can apply at a later date if the tenant’s/occupant’s VAT recovery on the rent increases to 90% or more.
- 3.9.11.5 Why use 90% as the VAT recovery threshold?
- 3.9.11.6 How do I calculate the VAT recovery percentage?
- 3.9.11.7 Remember it’s what you use the building for that matters
- 3.9.11.8 Warning – these connected party provisions have a very wide application
- 3.9.12 The option to tax and premia
- 3.9.13 The option to tax – letting by letting
- 3.10 The Waiver of Exemption
- 3.10.1 Introduction
- 3.10.2 So what is a waiver?
- 3.10.3 There was a choice
- 3.10.4 No new waivers after 1 July 2008
- 3.10.5 Existing waivers continue
- 3.10.6 Are waivers still restricted to lettings of less than ten years?
- 3.10.7 The impact of a waiver of exemption
- 3.10.8 The differences between the waiver of exemption and the option to tax
- 3.10.9 Cancelling a waiver of exemption
- 3.10.9.1 Deciding to cancel your waiver – the voluntary cancellation
- 3.10.9.2 Calculation of VAT repayable when cancelling a waiver
- 3.10.9.3 The automatic termination of the waiver on lettings between connected persons
- 3.10.9.4 Why is a waiver cancelled in respect of connected lettings?
- 3.10.9.5 There is a transitional period for connected lettings if you charge enough VAT on the letting
- 3.10.9.6 Twelve is the Magic Number
- 3.10.9.7 Condition 2 – The VAT must be paid in six even instalments throughout the year
- 3.10.9.8 When can the formula apply?
- 3.10.9.9 Continuing to apply the formula after 1 July 2008.
- 3.10.9.10 Connected lettings within a VAT Group
- 3.10.9.11 The connected letting provisions will also catch ‘innocent’ leases
- 3.10.9.12 Connected lettings made after 1 July 2008
- 3.10.10 Selling a property before cancellation of your waiver
- 3.10.11 Finance Act 2009 changes
- 3.10.11.1 Sale of a property that was subject to a waiver between 1 July 2008 and 2 June 2009 where you have no more property subject to a waiver
- 3.10.11.2 Sale of a property that was subject to a waiver between 1 July 2008 and 3 June 2009 where you have other properties subject to the waiver
- 3.10.11.3 Sale of properties subject to a waiver after 3 June 2009
- 3.10.12 Letting a property after cancelling your waiver of exemption
- 3.10.13 Sale of a property after the cancellation of a waiver
- 3.10.14 The implications of making a taxable sale after cancelling a waiver of exemption
- 3.10.15 The implications of making an exempt sale after cancelling a waiver of exemption
- 3.10.16 The waiver of exemption and residential lettings
- 3.10.17 Backdating a waiver of exemption
- 3.11 Premiums on the Grant of a Lease
- 3.12 Reverse Premiums
- 3.13 Assignments
- 3.13.1 Assignments pre 1 July 2008
- 3.13.2 Assignments post 1 July 2008 – not transitional interests
- 3.13.3 Assignments post 1 July 2008 – transitional interests
- 3.13.4 Payment by the assignor to the assignee
- 3.13.5 Payment by the assignee to the assignor
- 3.14 Surrenders
- 3.14.1 VAT treatment of a surrender before 1 July 2008
- 3.14.2 Surrenders post 1 July 2008 – transitional interests
- 3.14.3 VAT treatment of a surrender after 1 July 2008
- 3.14.4 What if payment is made for the surrender?
- 3.14.4.1 Payment by the landlord to the tenant
- 3.14.4.2 Payment by the tenant to the landlord on or after 1 July 2008
- 3.14.5 Break clauses and surrenders
- 3.15 Lease Variations
- 3.16 Leases Within a VAT Group
- 3.17 Dilapidations
- 3.18 Election to Register for VAT – Holiday Homes
- Appendix – Connected Persons
- Chapter 4 The Capital Goods Scheme (“CGS”)
- PART I – AN OVERVIEW
- 4.1 Introduction
- 4.2 Why was the CGS Introduced?
- 4.3 How does the CGS Match VAT Recovery to VATable Use of the Property?
- 4.4 A Basic Overview of the CGS
- PART II – A DETAILED LOOK AT THE CGS – THE TERMS AND FORMULA
- 4.5 When does the CGS Apply?
- 4.6 What is a Capital Good?
- 4.7 Applying the CGS
- 4.8 The Four Calculations that Underpin the CGS
- 4.9 When does the Adjustment Period Start?
- 4.10 How do you Account for the Adjustment?
- 4.11 A Glossary of Terms
- 4.12 A Worked Example of a Capital Goods Scheme
- 4.12.1 Step 1 – Recovering the VAT paid
- 4.12.2 The second step – working out the “Total reviewed deductible amount”
- 4.12.3 Step 3 – The first adjustment
- 4.12.4 Step 4 – The second interval adjustment
- 4.12.5 Step 5 – The third interval adjustment
- 4.12.6 Step 6 – The fourth interval adjustment
- 4.12.7 Step 7 – The remaining intervals
- 4.12.8 The Capital Goods Record
- 4.12.9 The amount of VAT recovered – check
- 4.12.10 Summary
- PART III – OTHER CALCULATIONS UNDER THE CGS
- 4.13 Non-Use of the Capital Good
- 4.13.1 What happens if a capital good is not used during the initial interval?
- 4.13.2 What happens if a capital good is not used in the second or a subsequent interval?
- 4.13.3 What does “use” mean?
- 4.14 What Happens if my Accounting Year-end Changes?
- 4.15 Why is the Initial Interval Set at the First 12 Months of Use?
- 4.16 Calculating the Interval Adjustment and the Annual Adjustment
- 4.17 Selling the Property During the CGS Period
- 4.17.1 The impact of making a taxable sale
- 4.17.2 The purchaser’s position
- 4.17.3 The impact of making an exempt sale
- 4.17.4 The purchaser’s position
- 4.17.5 The interaction between the CGS and the Option to Tax a Sale
- 4.17.6 Sale of part of a capital good
- 4.18 A Significant Change in Taxable Use of the Capital Good – “The Big Swing”
- 4.19 The CGS Implications of Cancelling an Option to Tax
- 4.20 The CGS Implications of Opting to Tax
- 4.21 The CGS Implications of Granting a Letting and not Opting to Tax
- 4.22 Some Points on the CGS and Transfer of Business Relief
- 4.22.1 VAT recovery on a VAT exempt property under Transfer of Business
- 4.22.2 The CGS implications of a sale between connected persons
- 4.22.2 The VAT status of the adjustment amount
- 4.22.4 The interaction of the connected party provisions with the market value provisions
- 4.22.5 Avoiding paying the adjustment amount
- 4.22.6 The interaction of the Companies Act 2014, VAT Transfer of Business Relief and the Capital Goods Scheme
- 4.23 Refurbishments Carried Out by a Tenant
- 4.24 Destroyed Capital Goods
- 4.25 The Impact of Changing the Year-End During the Adjustment Period
- 4.26 Direct Tax Implications of CGS Adjustments
- Chapter 5 The Transitional Measures
- PART I - THE TRANSITIONAL RULES
- 5.2 Understanding when you need to apply the Transitional Rules
- 5.3 The 4 Transitional Transactions
- 5.4 The 4TT Checklist
- 5.4.1 The first transitional transaction – The transitional sale
- 5.4.2 The second transitional transaction – The transitional letting
- 5.4.3 The third transitional transaction – The transitional assignment
- 5.4.4 The fourth transitional transaction – The transitional surrender
- 5.5 A More Detailed Look at the Transitional Rules
- 5.6 What is a Transitional Interest?
- 5.6.1 The first definition – freeholds and freehold equivalents
- 5.6.2 The second definition – legacy leases and legacy lease reversions
- 5.6.2.1 Legacy Lease Reversions
- 5.7 The First Transitional Transaction – Transitional Sales
- 5.8 The Second Transitional Transaction – Transitional Lettings
- 5.8.1 What is a deductibility adjustment?
- 5.8.2 Differences between a transitional letting and a letting covered by the standard rules
- 5.8.3 The hidden costs of a deductibility adjustment
- 5.8.3.1 The effect of development on the formula for the deductibility adjustment
- 5.8.3.2 Opting to tax a transitional letting DOES NOT give you additional VAT recovery
- 5.8.4 The entitlement to an additional VAT credit on selling or leasing the property after paying a deductibility adjustment
- 5.8.5 The impact of making a taxable letting after paying a deductibility adjustment
- 5.9 The Third and Fourth Transitional Transactions – Transitional Assignments & Transitional Surrenders
- 5.9.1 Is it a transitional assignment/surrender – The 20 year rule?
- 5.9.2 Is the transitional assignment/surrender taxable or exempt?
- 5.9.3 Calculating the VAT arising on the assignment or surrender
- Some Examples of Taxable Assignments
- 5.9.4 The VAT treatment of a premium paid for the assignment/surrender of a legacy lease
- 5.9.5 Opting to tax an exempt assignment or surrender
- 5.9.6 If you make a taxable assignment or surrender you may get an additional VAT repayment
- 5.10 Summary Check List for Assignments/Surrenders of a Transitional Interest
- 5.11 Reverse-Charge
- 5.12 The Document
- 5.13 CGS Implications for the Assignee/Landlord Arising from the Assignment/Surrender of a Legacy Lease
- 5.14 The Sale of a Property After the Surrender of a Transitional Lease
- 5.15 Lettings after the Surrender of a Transitional Lease
- 5.16 Use of a Property After the Surrender of a Transitional Interest
- 5.17 The Status of an Assigned Transitional Interest
- PART II – THE APPLICATION OF THE CGS TO TRANSITIONAL INTERESTS
- 5.18 To what Transitional Interests Does the CGS Apply?
- 5.19 Applying the CGS to Transitional Interests
- 5.20 The CGS Implications of Disposing of Your Transitional Interest
- 5.21 Amendments to the CGS so that it can apply to Transitional Interests
- 5.22 Transitional Interests Acquired After 1 July 2007
- PART III – THE ROLE OF SECTION 4 VAT ACT 1972 AFTER 1 JULY 2008
- 5.23 The Remains of Section 4 VAT Act 1972
- 5.24 Section 93(2) and the Sale of the Reversionary Interest
- 5.25 The Continuance of Section 93(3)
- 5.26 The Continuance of Section 95(8)(c)(d)(e)
- 5.27 The Relationship between Section 93 and 95(4)(b) & (8)(c) to (e) and Section 95
- Chapter 6 Registration, Recovery, Invoicing and Returns
- 6.1 Registration
- 6.2 Recovery
- 6.3 The VAT Invoicing Requirements on the Sale of an Ownership Interest or an opted letting
- 6.3.1 Governing legislation
- 6.3.2 Requirement to issue an invoice
- 6.3.3 What should be on a VAT invoice?
- 6.3.4 Time limit for issuing the invoice
- 6.4 For How Long do you Have to Hold on to VAT Records?
- 6.5 The Appropriate Return for VAT on the Sale of an Ownership Interest
- Chapter 7 Sales of Properties by Liquidators, Receivers and Mortgagees in Possession
- Chapter 8 The Impact of EU Law on Irish VAT on Property
- 8.1 Introduction
- 8.2 The Relationship between Irish and EU VAT Law
- 8.3 The Meaning of the Word “Letting” for VAT Purposes
- 8.3.1 The definition of “letting” given by the European court
- 8.3.2 Hotel sector or sector with a similar function – Blasi
- 8.3.3 Licences
- 8.4 ECJ decisions on the Non-Business use of Business Assets
- 8.5 Using a Property for both Business and Non-Business Purposes – The Practical Implications
- Appendix I VAT on Property Guide
- Appendix II FAQs – VAT on Property
- Appendix III Tax Briefing – Issue 69, September 2008
- Appendix IV Revenue eBrief No.. 37/09: 5 June 2009
- Appendix V Revenue eBrief No.. 40/09, 29 July 2009
- Appendix VI Tax Briefing – Issue 81, November 2009
- Appendix VII Tax Briefing – Issue 02, February 2010
- Appendix VIII Tax Briefing – Issue 03, April 2010
- Appendix IX Service Charges
- Appendix X Note to VAT TALC
- Appendix XI Tax Briefing, Issue number 10, 2010 VAT Treatment of “Forced Sales” and similar situations involving a Mortgagee in Possession or an Asset Receiver
- Appendix XII [Part 04-02] Disclosure of information to Mortgagees-in-Possession (MIPs), Asset Receivers and other Receivers to enable them to meet their obligations under Value-Added Tax legislation
- Appendix XIII Transfer of Business Revenue Information Leaflet – November 2015
- Appendix XIV Revenue correspondence on the application of Transfer of Business relief – 2 April 2014