I would like a better briefing on section 152.
SECTION 152.
Question proposed: "That section 152 stand part of the Bill."
This section amends section 10 of the VAT Act which deals with the amount on which tax is chargeable and the amendments provide that the normal rules regarding taxable amounts in relation to supplies apply also in respect of intra-Community acquisition of goods. The section will have effect from 1 January.
Section 10 of the VAT Act specifies the amount on which VAT is chargeable in respect of supplies of goods and services. All the amendments to the section arise from the new EC VAT arrangements. The principal change is the insertion of a new subsection (1A) to provide that the amount on which VAT is chargeable in respect of intra-Community acquisitions is the same as that which applies in respect of supplies of goods in the State.
A new subsection, (5A) is also being inserted to cover the situation where the intra-Community acquisition occurs both within the State and in the territory of another member state as a consequence of the new section 3A(2). Where the situation arises, VAT will be payable in the member state to which the goods are actually delivered and to avoid double taxation VAT must be relieved to the other member state. An example of this would be where a trader in Ireland quotes his VAT registration number to obtain goods from France but the goods are actually delivered to Germany. The goods will be subject to VAT on acquisition in Germany but there will also be a taxable acquisition here so once the Irish trader establishes that tax has been paid and accounted for in Germany the tax charge in Ireland will be cancelled so as to avoid double taxation.
Is that a simultaneous discount?
Yes.
Question put and agreed to.