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8 2004

Finance Act 2004

PART 3

Value-Added Tax

Interpretation (Part 3).

54. —In this Part—

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

“Act of 2001” means the Finance Act 2001 ;

“Principal Act” means the Value-Added Tax Act 1972 .

Amendment of section 1 (interpretation) of Principal Act.

55. —Section 1 of the Principal Act is amended by substituting the following for the definition of “taxable dealer”:

“‘taxable dealer’—

(a) in relation to supplies of gas through the natural gas distribution system, or of electricity, has the meaning assigned to it by section 3(6A),

(b) in relation to supplies of movable goods other than a means of transport, has the meaning assigned to it by section 10A, and

(c) in relation to supplies of means of transport, has the meaning assigned to it by section 12B;”.

Amendment of section 3 (supply of goods) of Principal Act.

56. —Section 3 of the Principal Act is amended—

(a) in subsection (6) (inserted by the Finance Act 1992 ) by substituting in the proviso to paragraph (d) “such supplies,” for “such supplies.” and by inserting the following paragraphs after the proviso to paragraph (d):

“(e) in the case of the supply of gas through the natural gas distribution system, or of electricity, to a taxable dealer, whether in the State, or in another Member State of the Community, or outside the Community, the place where that taxable dealer has established the business concerned or has a fixed establishment for which the goods are supplied, or in the absence of such a place of business or fixed establishment the place where that taxable dealer has a permanent address or usually resides,

(f) in the case of the supply of gas through the natural gas distribution system, or of electricity, to a customer other than a taxable dealer, the place where that customer has effective use and consumption of those goods; but if all or part of those goods are not consumed by that customer, then the goods not so consumed shall be deemed to have been supplied to that customer and used and consumed by that customer at the place where that customer has established the business concerned or has a fixed establishment for which the goods are supplied or in the absence of such a place of business or fixed establishment, the place where that customer has a permanent address or usually resides,”,

and

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

“(6A) In subsection (6) ‘taxable dealer’ means a taxable person whose principal business in respect of supplies of gas through the natural gas distribution system, or of electricity, received by that person, is the supply of those goods for consideration in the course or furtherance of business and whose own consumption of those goods is negligible.”.

Amendment of section 4 (special provisions in relation to the supply of immovable goods) of Principal Act.

57. —Section 4 of the Principal ACt is amended by substituting the following for subsection (6)—

“(6) Notwithstanding anything in this section or in section 2 tax shall not be charged on the supply of immovable goods—

(a) in relation to which a right in favour of the person making the supply to a deduction under section 12 in respect of any tax borne or paid on the supply or development of the goods did not arise and would not, apart from section 3(5)(b)(iii), have arisen, or

(b) which had been occupied before the specified day and had not been developed between that date and the date of the supply,

other than a supply of immovable goods to which the provisions of subsection (5) apply.”.

Amendment of section 8 (taxable persons) of Principal Act.

58. —Section 8 of the Principal Act is amended—

(a) in subsection (1) (as amended by the Finance Act 2003 ) by substituting “in paragraph (f) or (g) of subsection (1A)” for “in subsection (1A)(f)”, and

(b) by inserting the following after subsection (1A) (f):

“(g) Where a taxable person not established in the State supplies gas through the natural gas distribution system, or electricity, to a recipient in the State and where such recipient is—

(i) a taxable person,

(ii) a Department of State or local authority,

(iii) a body established by statute, or

(iv) a person who receives that supply for the purpose of any activity specified in the First Schedule,

then that recipient shall in relation to that supply be a taxable person or be deemed to be a taxable person and shall be liable to pay the tax chargeable as if that recipient supplied those goods in the course or furtherance of business.”.

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

59. —Section 11 of the Principal Act is amended in subsection (1)(f) (inserted by the Finance Act 1992 ) by substituting “4.4 per cent” for “4.3 per cent” (inserted by the Act of 2001).

Amendment of section 12 (deduction for tax borne or paid) of Principal Act.

60. —Section 12 of the Principal Act is amended in subsection (1)(a) by inserting the following after subparagraph (v):

“(va) the tax chargeable during the period, being tax for which the taxable person is liable by virtue of section 8(1A)(f) in respect of goods which are installed or assembled; but this subparagraph shall apply only where the taxable person would be entitled to a deduction of that tax elsewhere under this subsection if that tax had been charged to such person by another taxable person,

(vb) the tax chargeable during the period, being tax for which the taxable person is liable by virtue of section 8(1A)(g) in respect of the supply to such person of gas through the natural gas distribution network, or of electricity; but this subparagraph shall apply only where the taxable person would be entitled to a deduction of that tax elsewhere under this subsection if that tax had been charged to such person by another taxable person,”.

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

61. —Section 12A (inserted by the Act of 1978) of the Principal Act is amended in subsection (1) by substituting “4.4 per cent” for “4.3 per cent” (inserted by the Act of 2001).

Amendment of section 15B (goods in transit (additional provisions)) of Principal Act.

62. —Section 15B (inserted by the European Communities (Value-Added Tax) Regulations 1994 (S.I. 448 of 1994)) of the Principal Act is amended—

(a) by substituting “before the date of accession” for “on or before the 31st day of December, 1994” in each place where it occurs,

(b) by substituting “date of accession” for “1st day of January, 1995” in each place where it occurs,

(c) in subsection (5) by deleting the proviso to paragraph (c),

(d) by inserting the following after subsection (5):

“(5A) Subsection (5)(c) shall be deemed to be complied with where it is shown to the satisfaction of the Revenue Commissioners that—

(i) the date of the first use of the means of transport was before 1 January 1987 in the case of means of transport entering the State from the Republic of Austria, the Republic of Finland (excluding the Åland Islands) or the Kingdom of Sweden,

(ii) the date of the first use of the means of transport was before 1 May 1996 in the case of means of transport entering the State from the Czech Republic, the Republic of Estonia, the Republic of Cyprus, the Republic of Latvia, the Republic of Lithuania, the Republic of Hungary, the Republic of Malta, the Republic of Poland, the Republic of Slovenia or the Slovak Republic, or

(iii) the tax due by reason of the importation does not exceed €130.”,

and

(e) in paragraph (7)(a)—

(i) by inserting the following definition before the definition of “the enlarged Community”:

“ ‘date of accession’ means 1 January 1995 in respect of the Republic of Austria, the Republic of Finland (excluding the Åland Islands) and the Kingdom of Sweden or 1 May 2004 in respect of the Czech Republic, the Republic of Estonia, the Republic of Cyprus, the Republic of Latvia, the Republic of Lithuania, the Republic of Hungary, the Republic of Malta, the Republic of Poland, the Republic of Slovenia and the Slovak Republic;”,

and

(ii) by substituting the following for the definition of “new Member State”:

“ ‘new Member State’ means any state referred to in the definition of ‘date of accession’ with effect from the relevant date.”.

Amendment of section 17 (invoices) of Principal Act.

63. —Section 17 of the Principal Act is amended in subsection (1) by inserting the following after “section 11(1),”:

“or who supplies goods or services to a person in another Member State who is liable to pay value-added tax pursuant to Council Directive No. 77/388/EEC of 17 May 1977 on such supply,”.

Amendment of First Schedule to Principal Act.

64. —The First Schedule to the Principal Act is amended—

(a) in paragraph (i)(g) (as substituted by the Finance Act 1991 )—

(i) by substituting “the management of an undertaking specified in one of the following clauses, and such management may comprise any of the three functions listed in Annex II to Directive 2001/107/EC of the European Parliament and Council (being the functions included in the activity of collective portfolio management) where those functions are supplied by the person with responsibility for the provision of the functions concerned in respect of the undertaking, and which is—” for “the management of an undertaking which is—”,

(ii) in clause (IV) by substituting “this subparagraph apply, or” for “this subparagraph apply;”, and

(iii) by inserting the following after clause (IV):

“(V) an undertaking which is a qualifying company for the purposes of section 110 of the Taxes Consolidation Act 1997 ;”,

(b) in paragraph (xxv)(b) by substituting “the school;” for “the school.”, and

(c) by inserting the following after paragraph (xxv):

“(xxvi) the importation of gas through the natural gas distribution system, or the importation of electricity.”.

Amendment of Fourth Schedule to Principal Act.

65. —The Fourth Schedule to the Principal Act is amended—

(a) by inserting the following after paragraph (iiic):

“(iiid) the provision of access to, and of transport or transmission through, natural gas and electricity distribution systems and the provision of other directly linked services;”,

and

(b) in paragraph (v) by inserting “and financial fund management functions” after “re-insurance”.