PART III

Value-Added Tax

87. —In this Part—

“the Principal Act” means the Value-Added Tax Act, 1972 ;

“the Act of 1978” means the Value-Added Tax (Amendment) Act, 1978 ;

“the Act of 1992” means the Finance Act, 1992 ;

“the Act of 1993” means the Finance Act, 1993 ;

“the Act of 1995” means the Finance Act, 1995.

88. —Section 1 of the Principal Act is hereby amended in subsection (1)—

(a) by the insertion after the definition of “Community” of the following definitions:

“‘contractor’, in relation to contract work, means a person who makes or assembles movable goods;

‘contract work’ means the service of handing over by a contractor to another person of movable goods made or assembled by the contractor from goods entrusted to the contractor by that other person, whether or not the contractor has provided any part of the goods used;”,

(b) by the substitution in the definition of “goods” of “used” for “second-hand”, and

(c) by the substitution in the definition of “importation of goods” of “the State” for “a Member State”.

89.—Section 3 of the Principal Act is hereby amended—

(a) in subsection (1)—

(i) by the substitution of the following paragraph for paragraph (aa) (inserted by the Act of 1995):

“(aa) the sale of movable goods pursuant to a contract under which commission is payable on purchase or sale by an agent or auctioneer who concludes agreements in such agent's or auctioneer's own name but on the instructions of, and for the account of, another person,”,

(ii) by the substitution of the following paragraph for paragraph (c):

“(c) the handing over by a person (in this paragraph referred to as the developer) to another person of immovable goods which have been developed from goods entrusted to the developer by that other person for the purpose of such development, whether or not the developer has supplied any part of the goods used,”,

and

(iii) in paragraph (g)—

(I) by the deletion of subparagraph (iii), and

(II) by the substitution of the following subparagraph for subparagraph (iiia):

“(iiia) the transfer of goods for the purpose of having a service carried out on them:

Provided that the goods which were so transferred by the person are, after being worked upon, returned to that person in the State,”,

(b) by the deletion of subsection (3) (inserted by the Finance Act, 1982 ), and

(c) by the substitution of the following subsection for subsection (4):

“(4) Where an agent or auctioneer makes a sale of goods in accordance with paragraph (aa) of subsection (1) the transfer of those goods to that agent or auctioneer shall be deemed to be a supply of goods to the agent or auctioneer at the time that that agent or auctioneer makes that sale.”.

90 .—Section 5 (inserted by the Act of 1978) of the Principal Act is hereby amended—

(a) in paragraph (c) of subsection (6)—

(i) by the insertion in subparagraph (iii) after “movable goods” of “except where the provisions of subparagraph (iv) of paragraph (f) apply”, and

(ii) by the insertion in subparagraph (iv) after “movable goods” of “, including contract work, except where the provisions of subparagraph (iv) of paragraph (f) apply”,

and

(b) in paragraph (f) of subsection (6), by the insertion of the following subparagraph after subparagraph (iii):

“(iv) valuation of or work on movable goods, including contract work, in cases where the goods are dispatched or transported out of the Member State where the valuation or work was physically carried out.”.

91 .—Section 10B (inserted by the Act of 1995) of the Principal Act is hereby amended in subsection (9) by the substitution of “auction scheme goods” for “tangible movable goods”.

92 .—Section 11 of the Principal Act is hereby amended—

(a) in subsection (1) (inserted by the Act of 1992) by the substitution in paragraph (f) of “2.8 per cent.” for “2.5 per cent.” (inserted by the Act of 1993), and

(b) by the insertion of the following subsection after subsection (1AA):

“(1AB) Notwithstanding subsection (1), the rate at which tax is chargeable on a supply of contract work shall be the rate that would be chargeable if that supply of services were a supply of the goods being handed over by the contractor to the person to whom that supply is made:

Provided that this subsection shall not apply to a supply of contract work in the circumstances specified in paragraph (xvi) of the Second Schedule.”.

93 .—Section 12 of the Principal Act is hereby amended—

(a) in paragraph (a) of subsection (1) by the insertion of the following subparagraph after subparagraph (i):

“(ia) the amount in respect of tax indicated separately on a document issued during the period in accordance with section 17(1AA) in respect of a supply of goods to him.”,

and

(b) in paragraph (a) of subsection (3) by the deletion of “or” (inserted by the Finance Act, 1987 ) at the end of subparagraph (iii) and by the insertion of the following subparagraph after subparagraph (iv):

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

94. —Section 12A (inserted by the Act of 1978) of the Principal Act is hereby amended in subsection (1) by the substitution of “2.8 per cent.” for “2.5 per cent.” (inserted by the Act of 1993).

95. —Section 13A (inserted by the Act of 1993) of the Principal Act is hereby amended in subsection (1) by the insertion after “Second Schedule” in the definition of “qualifying person” of “, supplies of contract work where the place of supply is deemed to be a Member State other than the State and supplies of contract work made in accordance with paragraph (xvi) of the Second Schedule”.

96 .—Section 15 (inserted by the Act of 1978) of the Principal Act is hereby amended in subsection (3) by the insertion after “duties” of “, expenses resulting from the transport of the goods to another place of destination within the Community, if that destination is known at the time of the importation,”.

97 .—Section 17 of the Principal Act is hereby amended—

(a) by the addition of the following proviso to subsection (1):

“Provided that, where goods are supplied in accordance with the terms of paragraph (b) of subsection (1) of section 3, and the ownership of those goods is transferred to a person supplying, in respect of those goods, financial services of the kind specified in subparagraph (e) of paragraph (i) of the First Schedule, the taxable person making the supply of the goods in question shall issue the invoice to the person supplying the said financial services in lieu of the taxable person to whom the supply of the goods is made and that invoice shall include the name and address of the person supplying those financial services.”,

(b) by the insertion of the following subsections after subsection (1A):

“(1AA) Where the proviso to subsection (1) applies, the person supplying the financial services in question shall issue a document to the person to whom the supply of goods is made and shall indicate thereon—

(a) the amount which is set out in respect of tax on the invoice issued to the person supplying the financial services in accordance with the said proviso in respect of that supply of goods, and

(b) such other particulars as are specified by regulations in respect of an invoice issued in accordance with subsection (1).

(1AB) Where any person issues a document for the purposes of subsection (1AA) that person shall, in respect of the document, be treated as a taxable person for the purposes of sections 16 and 18.”,

(c) by the insertion of the following subsection after subsection (3A):

“(3AB) Where any person supplying financial services receives a credit note issued under the terms of paragraph (b) of subsection (3) in respect of a supply of goods to which the proviso to subsection (1) applies, that person shall, within seven days of receipt of such credit note, issue to the person to whom the goods in question were supplied, a document corresponding to that credit note indicating such particulars as are specified by regulations in respect of the issue of such credit notes, and the amount which the taxable person to whom the goods were supplied may deduct under section 12 in respect of that supply shall be reduced by the amount in respect of tax shown in the document.”,

(d) by the insertion of the following subsection after subsection (5):

“(5A) If any person issues a document for the purposes of subsection (1AA) in relation to a supply of goods indicating a greater amount in respect of tax than the amount of tax invoiced in accordance with the proviso to subsection (1) in relation to that supply, that person shall, in relation to that excess, be deemed for the purposes of this Act to be a taxable person and a person to whom subsection (5) applies, and that excess shall be deemed to be tax.”,

and

(e) by the insertion of the following subsection after subsection (7):

“(7A) A document required to be issued in accordance with subsection (1AA) shall be issued within twenty-two days next following the month of supply of the goods.”.

98. —The Second Schedule (inserted by the Finance Act of 1976) to the Principal Act is hereby amended—

(a) by the deletion in paragraph (iii) (as amended by the Act of 1992) after “goods to” of “or from”,

(b) by the substitution of the following paragraph for paragraph (xvi) (inserted by the Act of 1992):

“(xvi) the supply of services consisting of work on movable goods acquired or imported for the purpose of undergoing such work within the Community and dispatched or transported out of the Community by or on behalf of the person providing the services”,

and

(c) by the insertion of the following paragraph after paragraph (xvi) (inserted by paragraph (b)):

“(xvia) the supply of transport services relating to the importation of goods where the value of such services is included in the taxable amount in accordance with section 15 (3);”.

99 .—The Sixth Schedule (inserted by the Act of 1992) to the Principal Act is hereby amended in subparagraph (b) of paragraph (xviii) by the insertion after “other than” of “contract work or”.

100 .—The European Communities (Value-Added Tax) Regulations, 1995 (S.I. No. 363 of 1995), shall be deemed to have been revoked with effect from the 1st day of January, 1996.