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Amendment of section 5 (rendering of services) of Principal Act.
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81.—Section 5 (inserted by the Act of 1978) of the Principal Act is hereby amended—
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(a) by the insertion after subsection (3) of the following subsection:
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“(3A) Where a person is in receipt of a service, other than a service specified in the Fourth Schedule, for the purposes of his business and the circumstances are such that value-added tax referred to in Community Council Directive No. 77/388/EEC1
is not payable on the supply or, if it is payable, is, in accordance with the laws of the country in which the supplier has his establishment, repayable to or deductible by the person, that person shall be deemed, for the purposes of this Act, to have himself supplied the service for consideration in the course or furtherance of his business and shall be liable for tax on the supply except where such tax, if it were chargeable, would be wholly deductible under section 12.”, and
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(b) in subsection (6)—
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(i) by the insertion after paragraph (c) of the following paragraph:
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“(d) In confirmation of the provisions contained in the Value-Added Tax (Place of Supply of Certain Services) Regulations, 1985 (S.I. No. 343 of 1985), which regulations are hereby revoked, the place of supply of services consisting of the hiring out of movable goods by a person established outside the Community shall be deemed to be the place where the movable goods are, or are to be, effectively used.”,
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and
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(ii) by the substitution of the following paragraph for paragraph (e):
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“(e) The place of supply of services of any of the descriptions specified in the Fourth Schedule, with the exception of services of the description specified in paragraph (ia) of the said Schedule supplied by a person who has his establishment outside the Community, shall be deemed, for the purposes of this Act, to be—
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(i) in case they are received, otherwise than for a business purpose, by a person whose usual place of residence is situated outside the Community, the place where he usually resides,
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(ii) in case they are received, for the purposes of any business carried on by him, by a person—
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(I) who has his establishment outside the Community and has not also an establishment in the Community, or
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(II) who has his establishment in the Community but does not have his establishment or, if he has more than one establishment, his principal establishment in the country in which, but for this subparagraph, the services would be deemed to be supplied,
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the place where he has his establishment or, if he has more than one establishment, the establishment of his at which or for the purposes of which the services are most directly used or to be used, as the case may be,
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(iii) in case they are received, for the purposes of any business carried on by him, by a person resident in the Community who has no establishment anywhere, the place where he usually resides,
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(iv) in case they are received by a department of State, by a local authority or by a body established by statute, and are supplied—
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(I) by a person who has his establishment outside the Community and has not also an establishment in the Community, or
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(II) by a person who has his establishment in another Member State of the Community, in circumstances in which value-added tax referred to in Community Council Directive No. 77/388/EEC is not payable in that Member State in respect of the supply,
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the State,
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(v) in any other case, the place specified in subsection (5) that is appropriate to the circumstances.”.
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1 O.J. No. L145/1 of 13.6.1977. |
