I do not see any reference in this section to legal, architectural and engineering design services, as distinct from transfer of goods. I see a reference to transport and transport related services. Could the Minister outline the regime that would operate in relation to a firm of architects doing a contract in Paris for a French based client? Is there room for discretion as to where one would charge for the service in order to reduce the rate of VAT?
SECTION 149.
I have had an approach from people promoting the development of a number of private golf clubs as tourism investments. They are concerned that the extension of VAT in their area will have a detrimental effect. They argue that it will put them at a disadvantage relative to other golf clubs which are private clubs although not privately owned in the sense of being owned by one individual or one promoter. Could the Minister say something about the change in VAT on services like golf clubs? Would there be differentiation between clubs? Promoters of tourism development in my constituency feel that they will be put at a disadvantage. I do not see from the Bill how that can happen but perhaps the Minister could clarify the matter. The point is analagous to but not the same as Deputy Quinn's point.
There is a section on commercial sports. We will come to it.
With regard to the VAT on services in the Single Market, there is no change in the vast majority of cases. VAT is usually payable where the service is performed in the case of VAT on intra-Community goods transport services which become liable for VAT, the place where the VAT is payable is subject to new rules in section 149 of the Bill. I will check how that relates to the service mentioned by Deputy Quinn.
My real question is: if company X in Dublin supplied an architectural service to client Y in Paris and the service was supplied direct from Dublin the VAT on the fees would be at 21 per cent. If payment came via an accommodation address in Paris, could a lower VAT rate apply? How will that be administered?
I am advised that the detailed rules will not have changed so, therefore, there will be no choice.
Unless you had a VAT registered office in France and you could supply it?
Yes.
Section 149 agreed to.