The section makes three amendments to section 15 of the VAT Act which deals with the importation of goods. Two of these changes are technical measures relating to the restructuring of section 11 (1) of the Act which will, in future, cover the VAT rates applying to imports as well as to internal supplies. These changes have effect from the date of the passing of the Act. The third amendment provides for the refund in certain cases of VAT paid on the importation of goods which are consigned to another member state with effect from 1 January. Subsection (c) also provides for the repayment of VAT charged on import where the goods are consigned to non-taxable entities in another member state. This repayment will only be made when the Revenue Commissioners are satisfied that the goods are being taxed in the member states of final destination. This provides for and mirrors the provision of section 38 (4) which provides that goods entering this State following import to another member state in the circumstances outlined should be taxed as intra-Community acquisitions.
SECTION 158.
Question proposed: "That section 158 stand part of the Bill."
If an old van was brought into Rosslare and sent to England for a Government Department? Is that the kind of situation?
An example is the case of a French University importing equipment from America, which is first landed at Rosslare. If not covered by the customs transit arrangements, VAT would be charged in Ireland at the point of entry. However, VAT will also be charged on the intra-Community acquisition of the goods when they arrive in France. There is no provision at present whereby the French university could recover the VAT paid in Ireland at the point of entry. This provision is being introduced to ensure that double taxation does not arise.
Question put and agreed to.
Section 159 agreed to.