Will it bring in extra revenue for the State?
SECTION 157.
Question proposed: "That section 157 stand part of the Bill."
I think it would have a cash flow benefit of between £9 and £10 million. It is a technical section.
I missed out a question on section 156.
There is reference to intra-Community acquisition of importation of new means of transport. What precisely is in mind there with "new means of transport" being imported free of VAT?
Chairman
That is on section 156.
Yes. Perhaps the Chair will give me discretion. I missed it when it was called.
It is the residual amount where if the goods are bought——
Section 156, line 34. There is a reference to intra-Community acquisition on importation of a new means of transport. It seems to be framed as an exemption. I do not have the principal Act to see where it fits in.
Traders, and not private individuals, are entitled to deduct VAT paid by them on the purchase of a car in the State. Under the new EC VAT arrangements, the basic principle means that the new means of transport is always taxable in the member state of consumption. Therefore if, following purchase, a new means of transport was subsequently despatched or transported to another member state you would be liable to acquisition VAT in the other member state.
The phrase "a new means of transport" is meant to include a new motor car or a new vehicle. It is not a new invention, is it?
No.
Not some new method of transport we have not yet thought of?
No, only the EC definition.
There is not some inventor in the South of Italy about to patent something that he wants included?
If there was, we would have heard from them.
Question put and agreed to.