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10 1985

FINANCE ACT, 1985

PART III

Value- Added Tax

Interpretation ( Part III ).

41. —In this Part—

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

the Act of 1976” means the Finance Act, 1976 ;

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

the Act of 1983” means the Finance Act, 1983 ;

the Act of 1984” means the Finance Act, 1984 .

Amendment of section 5 (rendering of services) of Principal Act.

42. —Section 5 (inserted by the Act of 1978) of the Principal Act is hereby amended by the deletion in subsection (6) of paragraph (d).

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

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

(a) by the substitution of the following subsection for subsection (1) (inserted by the Act of 1978):

“(1) Tax shall be charged at whichever of the following rates is appropriate in any particular case—

(a) 23 per cent. of the amount on which tax is chargeable in relation to the supply of taxable goods or services, other than goods or services on which tax is chargeable at any of the rates specified in paragraphs (b), (c) and (d),

(b) zero per cent. of the amount on which tax is chargeable in relation to the supply of any goods in the circumstances specified in paragraph (i) of the Second Schedule or the supply of goods of a kind specified in paragraphs (v), (vii), (viii), (x), (xii) to (xva) and (xvii) to (xx) of that Schedule or the supply of services of a kind specified in that Schedule,

(c) 10 per cent. of the amount on which tax is chargeable in relation to the supply of goods or services of a kind specified in the Sixth Schedule, and

(d) 2.2 per cent. of the amount on which tax is chargeable in relation to the supply of livestock.”,

(b) by the deletion of subsection (2) (inserted by the Act of 1978),

(c) in subsection (3) (inserted by the Act of 1978), by the deletion of “(apart from subsection (2))” in paragraph (b) (ii),

(d) in subsection (7) (inserted by the Act of 1976)—

(i) by the substitution in paragraph (e) (i) of “taxable goods” for “any goods to which, but for this subsection, subsection (1) (a), subsection (1) (aa), subsection (1) (aaa) or subsection (1) (b) would apply”, and

(ii) by the substitution in paragraph (e) (ii) of “taxable services” for “any services to which, but for this subsection, subsection (1) (a) or subsection (1) (b) would apply”,

and

(e) in subsection (8), by the substitution in paragraph (a) (inserted by the Finance Act, 1973 ) of “Second or Sixth” for “Second, Third, Sixth or Seventh”.

Amendment of section 12A (special provisions for tax invoiced by flat-rate farmers) of Principal Act.

44. —Section 12A (inserted by the Act of 1978) of the Principal Act is hereby amended by the substitution in subsection (1) of “2.2 per cent.” for “2 per cent.” (inserted by the Act of 1983).

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

45. —Section 13 (inserted by the Act of 1978) of the Principal Act is hereby amended by the deletion in subsection (3) (c) of “or for hiring out for utilisation within the State”.

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

46. —Section 15 (inserted by the Act of 1978) of the Principal Act is hereby amended—

(a) by the substitution of the following subsection for subsection (1):

“(1) Section 14 shall not apply to tax provided for by section 2 (1) (b) and that tax shall, subject to subsection (2), be charged—

(a) on goods of a kind specified in the Sixth Schedule at the rate specified in section 11 (1) (c) of the value of the goods,

(b) on livestock at the rate specified in section 11 (1) (d) of the value of the goods, and

(c) on all other goods at the rate specified in section 11 (1) (a) of the value of the goods”, and

(b) by the deletion of subsection (4).

Amendment of section 23 (determination of tax due) of Principal Act.

47. —Section 23 (inserted by the Act of 1978) of the Principal Act is hereby amended—

(a) in subsection (1)—

(i) by the substitution of “the inspector of taxes, or such other officer as the Revenue Commissioners may authorise to exercise the powers conferred by this section (hereafter referred to in this section as ‘other officer’), has reason to believe” for “the Revenue Commissioners have reason to believe”,

(ii) by the substitution of “the Revenue Commissioners” for “them”,

(iii) by the substitution of “the inspector or other officer may” for “they may”, and

(iv) by the substitution of “his” for “their”, and

(b) in subsection (2) (a), by the substitution of “the inspector or other officer” for “the Revenue Commissioners”.

Amendment of section 32 (regulations) of Principal Act.

48. —Section 32 of the Principal Act is hereby amended—

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

“(ww) the determination of average foot size for the purposes of paragraph (xix) of the Second Schedule;”,

and

(b) by the substitution in subsection (2A) of “matters specified in subsection (1) (w) or (1) (ww)” for “matter specified in subsection (1) (w)”.

Amendment of First Schedule to Principal Act.

49. —The First Schedule (inserted by the Act of 1978) to the Principal Act is hereby amended by the insertion, after paragraph (vii), of the following paragraph:

“(viii) promotion of and admissions to live theatrical or musical performances, including circuses, but not including—

(a) dances to which section 11 (7) relates, or

(b) performances in conjunction with which facilities are available for the consumption of food or drink during all or part of the performance by persons attending the performance;”.

Amendment of Second Schedule to Principal Act.

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

(a) by the substitution of the following paragraph for paragraph (xii):

“(xii) food and drink of a kind used for human consumption, excluding—

(a) beverages chargeable with any duty of excise specifically charged on spirits, beer, wine, cider, perry or Irish wine, and preparations thereof,

(b) other manufactured beverages, including fruit juices and bottled waters, and syrups, concentrates, essences, powders, crystals or other products for the preparation of beverages, but excluding—

(I) tea and preparations thereof,

(II) cocoa, coffee and chicory and other roasted coffee substitutes, and preparations and extracts thereof, or

(III) preparations and extracts of meat, yeast, egg or milk,

(c) ice cream, ice lollipops, water ices and similar frozen products, and prepared mixes and powders for making such products,

(d) (I) chocolates, sweets and similar confectionery (including drained, glacé or crystallised fruits), biscuits, crackers and wafers of all kinds, and all other confectionery and bakery products excluding bread,

(II) in this subparagraph “bread” means food for human consumption manufactured by baking dough composed exclusively of a mixture of cereal flour and any one or more of the ingredients mentioned in the following subclauses in quantities not exceeding the limitation, if any, specified for each ingredient—

(1) yeast or other leavening or aerating agent, salt, malt extract, milk, water, gluten,

(2) fat, sugar and bread improver, subject to the limitation that the weight of any ingredient specified in this subclause shall not exceed 2 per cent. of the weight of flour included in the dough,

(3) dried fruit, subject to the limitation that the weight thereof shall not exceed 10 per cent. of the weight of flour included in the dough,

other than food packaged for sale as a unit (not being a unit designated as containing only food specifically for babies) containing two or more slices, segments, sections or other similar pieces, having a crust over substantially the whole of their outside surfaces, being a crust formed in the course of baking or toasting, and

(e) any of the following when supplied for human consumption without further preparation, namely, potato crisps, potato sticks, potato chips, potato puffs and similar products made from potato, or from potato flour or from potato starch, popcorn, and salted or roasted nuts whether or not in shells;”,

and

(b) by the substitution of the following paragraph for paragraphs (xviiia) (inserted by the Act of 1984) and (xix) (inserted by the Act of 1976):

“(xix) articles of children's personal footwear of sizes which do not exceed the size appropriate to children of average foot size of 10 years of age (a child whose age is 10 years or 10 years and a fraction of a year being taken for the purposes of this paragraph to be a child of 10 years of age), but excluding footwear which is not described, labelled, marked or marketed on the basis of age or size;”.

Miscellaneous amendments (Third, Sixth and Seventh Schedules) to Principal Act.

51. —The Principal Act is hereby amended by—

(a) the deletion of the Third Schedule (inserted by the Act of 1976),

(b) the deletion of the Seventh Schedule (inserted by the Act of 1984), and

(c) the substitution of the following Schedule for the Sixth Schedule (inserted by the Act of 1983):

“SIXTH SCHEDULE

Goods and Services Chargeable at the Rate Specified in Section 11 (1) (c)

(i) (a) Coal, peat and other solid substances held out for sale solely as fuel,

(b) gas of a kind used for domestic or industrial heating or lighting, whether in gaseous or liquid form, but not including gas of a kind normally used for welding and cutting metals or gas sold as lighter fuel,

(c) hydrocarbon oil of a kind used for domestic or industrial heating, excluding gas oil (within the meaning of the Hydrocarbon Oil (Rebated Oil) Regulations, 1961 (S.I. No. 122 of 1961)), other than gas oil which has been duly marked in accordance with Regulation 6 (2) of the said Regulations;

(ii) immovable goods;

(iii) services consisting of the development of immovable goods, and the maintenance and repair of immovable goods including the installation of fixtures, where the value of movable goods (if any) provided in pursuance of an agreement in relation to such services does not exceed two-thirds of the total amount on which tax is chargeable in respect of the agreement;

(iv) concrete ready to pour;

(v) blocks, of concrete, of a kind which comply with the specification contained in the Standard Specification (Concrete Building Blocks) Declaration, 1974 (Irish Standard 20: 1974);

(vi) articles of personal clothing and textile handkerchiefs, excluding—

(a) articles of clothing made wholly or partly of fur skin, other than garments merely trimmed with fur skin unless the trimming has an area greater than one-fifth of the area of the outside material, and

(b) articles of personal clothing of a kind specified in paragraphs (xvii) and (xviii) of the Second Schedule;

(vii) (a) fabrics, yarn, thread and leather, of a kind normally used in the manufacture of clothing, including elastics, tapes and padding materials in the form supplied for the manufacture of clothing, and

(b) yarn of a kind normally used in the manufacture of clothing fabrics;

(viii) articles of personal footwear, other than articles of personal footwear of a kind specified in paragraph (xix) of the Second Schedule;

(ix) sole and upper leather of a kind normally used for the manufacture and repair of footwear, and also soles, heels and insoles of any material;

(x) (a) the national daily newspapers published in the State,

(b) other newspapers, normally published at least weekly, the format, and the range and nature of the contents of which are similar to those of any newspaper referred to in subparagraph (a);

(xi) letting of the kind to which paragraph (iv) (b) of the First Schedule refers;

(xii) the hiring (in this paragraph referred to as ‘the current hiring’) to a person of—

(a) a vehicle designed and constructed, or adapted, for the conveyance of persons by road,

(b) a ship, boat or other vessel designed and constructed for the conveyance of passengers and not exceeding 15 tons gross,

(c) a sports or pleasure craft of any description including a yacht, cabin cruiser, dinghy, canoe, skiff or racing boat, or

(d) a caravan, mobile home, tent or trailer tent,

under an agreement, other than an agreement of the kind referred to in section 3 (1) (b), for any term or part of a term which, when added to the term of any such hiring (whether of the same goods or of other goods of the same kind) to the same person during the period of 12 months ending on the date of the commencement of the current hiring, does not exceed 5 weeks;

(xiii) services consisting of the repair or maintenance of—

(a) mechanically propelled land vehicles including self propelled mobile machinery (other than vehicles and machinery designed, constructed or intended for use on rails),

(b) machinery, plant or equipment of a kind commonly used by farmers in the State for the purposes of their occupation and not commonly used for any other purpose, or

(c) trailers (excluding caravans, mobile homes and trailer tents),

including the provision and installation in the course of supplying such services of goods of a kind normally included as parts of such vehicles, machinery, plant, equipment or trailers when supplied new, but excluding—

(I) the provision in the course of a repair or maintenance service of—

(A) accessories or attachments,

(B) tyres, tyre cases, interchangeable tyre treads, inner tubes and tyre flaps, for wheels of all kinds, or

(C) batteries, and

(II) the repair or maintenance, whether performed separately or in the course of the repair or maintenance of other goods, of articles which are accessories or attachments or goods specified in clause (I) (B) of this paragraph, other than goods to which clauses (b) and (c) and subclause (I) (C) of this paragraph refer, and

(III) washing, cleaning and polishing;

(xiv) agricultural services consisting of—

(a) field work, reaping, mowing, threshing, baling, harvesting, sowing and planting,

(b) disinfecting and ensilage of agricultural products,

(c) destruction of weeds and pests and dusting and spraying of crops and land,

(d) lopping, tree felling and similar forestry services, and

(e) land drainage and reclamation;

(xv) services of an auctioneer, solicitor, estate agent or other agent, directly related to the supply of immovable goods used for the purposes of an Annex A activity;

(xvi) farm accountancy or farm management services.”.

Amendment of Fourth Schedule to Principal Act.

52. —The Fourth Schedule (inserted by the Act of 1978) to the Principal Act is hereby amended by the insertion, after paragraph (i), of the following paragraph:

“(ia) hiring out of movable goods other than means of transport;”.

Repeals.

53. —Section 89 (2) of the Act of 1983 and section 96 of the Act of 1984 are hereby repealed.

Deferment of increase in rate of tax (private dwellings).

54. —(1) For the purposes of this section—

dwelling” means a house, or an apartment, flat, penthouse or similar unit of accommodation;

qualifying supply” means the supply on or before the 30th day of April, 1985, to a person, being an individual acting on his own behalf, of a service consisting of the development of immovable goods, being the construction of a dwelling designed for the private use of, and occupation by, such person, and includes a supply of immovable goods to that person on or before the said date in connection with the supply of the said service.

(2) In this section reference to the construction of a dwelling does not include reference to the conversion, reconstruction, alteration or enlargement of any existing building or buildings.

(3) In respect of the taxable period commencing on the 1st day of March, 1985, notwithstanding the provisions of section 11 of the Principal Act (as amended by this Act), value-added tax shall, in relation to a qualifying supply, be, and be deemed to have been, chargeable, at the rate of 5 per cent.