Finance Act 2010
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Amendment of section 10A (margin scheme goods) of Principal Act. |
119.— Section 10A of the Principal Act is amended with effect from 1 January 2010— | |
(a) in subsection (1) in the definition of “second-hand goods” by substituting “including means of transport (within the meaning of section 12B) and agricultural machinery (within the meaning of section 12C), purchased or acquired on or after 1 January 2010, but not including” for “other than means of transport, agricultural machinery (within the meaning of section 12C),”, | ||
(b) in subsection (1) by substituting the following for the definition of “taxable dealer”: | ||
“ ‘taxable dealer’— | ||
(a) means an accountable person who in the course or furtherance of business, whether acting on that person’s own behalf, or on behalf of another person pursuant to a contract under which commission is payable on purchase or sale, purchases or acquires or applies for the purpose of his or her business margin scheme goods or the goods referred to in paragraphs (b) and (c) of subsection (4), with a view to resale, or imports the goods referred to in paragraph (a) of subsection (4), with a view to resale, and | ||
(b) includes a person supplying financial services of the kind specified in paragraph 6(1)(e) of Schedule 1 who acquires or purchases margin scheme goods for the purpose of the supply thereof as part of an agreement of the kind referred to in section 3(1)(b), | ||
and, for the purposes of this interpretation, a person in another Member State shall be deemed to be a taxable dealer where, in similar circumstances, that person would be a taxable dealer in the State under this section.”, | ||
(c) by substituting the following for subsection (13): | ||
“(13) Notwithstanding paragraph 12 of Schedule 1 where an accountable person acquires goods to which the margin scheme has been applied and that person subsequently supplies those goods, that paragraph shall not apply to that supply, unless the goods consist of— | ||
(a) motor vehicles within the meaning of section 12(3)(b) which that person acquired other than as stock-in-trade or for the purposes of a business which consists in whole or in part of the hiring of motor vehicles or for use, in a driving school business, for giving driving instruction, or | ||
(b) goods used by that person solely in the course of an exempted activity.”, | ||
and | ||
(d) by inserting the following after subsection (13): | ||
“(14) With effect from the date of the passing of the Finance Act 2010— | ||
(a) where a means of transport which is a motor vehicle within the meaning of section 12(3)(b) is declared for registration to the Revenue Commissioners in accordance with section 131 of the Finance Act 1992 by a taxable dealer on that dealer’s own behalf and on which deductibility in accordance with section 12 has been claimed by that dealer, then that means of transport shall be treated for the purposes of this Act as if it were removed from stock-in-trade and such removal is deemed to be a supply of that means of transport by that taxable dealer for the purposes of section 3(1)(e) and, for the avoidance of doubt, the amount of tax chargeable in respect of that supply is the amount referred to in paragraph (b)(ii) and accordingly is not included in any amount which the taxable person is entitled to deduct in accordance with section 12(1)(a)(iii), | ||
(b) at the time when a taxable dealer supplies to another person a means of transport which is deemed to have been previously supplied in accordance with paragraph (a) or section 12B(11)(a), then that means of transport is deemed to have been re-acquired by that dealer as margin scheme goods immediately before the supply to that person and, for the purpose of the calculation of the profit margin in relation to that supply the purchase price of the means of transport is deemed to be the sum of— | ||
(i) the amount on which tax was chargeable on the supply of that means of transport to the dealer, | ||
(ii) the tax which was chargeable on the supply referred to at subparagraph (i), and | ||
(iii) the vehicle registration tax accounted for by that dealer in respect of the registration of that means of transport.”. |