I move amendment No. 27:
In page 14, line 16, to delete "12" and to substitute "12A (inserted by this Act)".
SECTION 11.
Amendment agreed to.
I move amendment No. 28:
In page 14, line 47, after " him " to insert " or in respect of goods imported by him ".
Section II contains a provision for the reimbursement of the input VAT suffered by certain foreign businessmen on purchases within the State. This amendment ensures that reimbursement will extend to VAT paid on the import of goods by such persons as well as to VAT paid on internal purchases of goods and services.
Amendment agreed to.
I move amendment No. 29:
In page 15, line 7, after "the State" to insert "but does not include tax chargeable in respect of goods for supply within the State or for hiring out for utilisation within the State".
This amendment provides that, in relation to the repayment of foreign traders in respect of VAT borne on goods or services purchased in the State or on goods imported, that there will be no repayment if the goods are sold by them within the State or hired out for use within the State.
This amendment is primarily to prevent a foreign trader from exploiting the proposed relief by entering into the hiring or leasing business in this country without setting up an establishment here. Without an establishment here it is unlikely that he would be a taxable person and his activities would discriminate seriously against Irish traders if he were enabled to get repayment of tax borne on his capital outlay. The prevention of any repayment, which we are proposing here, would remove the attraction for such a scheme.
A case comes to mind in regard to the purchase of a yacht. A person leased the yacht to himself to sail around Ireland——
I have heard of an Irishman who purchased a yacht on which VAT had already been paid in Britain and he complained bitterly to me because he had to pay VAT here. The situation is difficult. I understand that we have not had this problem to any great degree, but it has happened in Britain where the procedure was that a company was formed which purchased the yacht and then hired it out to individuals but it was necessary to prove that that hiring was in the course of business.
Amendment agreed to.
Section 11, as amended, agreed to.