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Special Committee Value-Added Tax (Amendment) Bill, 1977 debate -
Thursday, 2 Nov 1978

SECTION 14.

Before I move amendment No. 34 may I draw the attention of the Committee to two corrections which are required in paragraph (i) of the amendment? First, the reference to "the Principal Act" should read "this Act". The term "Principal Act" is used in the Bill as a reference to the 1972 VAT Act. To use such a term would be inappropriate within the sections of the 1972 Act which are now being inserted, or being amended by, the Bill. Secondly, the reference to "subsections (2)" should read "subsections (3)" since it is subsection (3) of section 17 of the 1972 VAT Act which provides for the issue of a credit note where the consideration in an invoice is later reduced. If the Committee are agreeable I propose that we incorporate those two corrections in the amendment as we take it.

I have no objection as long as we are sure we can legally do this. Is the Minister satisfied it can be done in this way and we do not need notice of the amendments?

The amendments involve corrections to amendment No. 34. If the Committee agree, the amendments may be taken without notice.

I move amendment No. 34.

In page 17, before section 14 to insert the following section:

"14.—Section 17 of the Principal Act is hereby amended—

(a) by the insertion, after sub-section (1), of the following sub-section:

‘(2) A flat-rate farmer who, in accordance with section 12A, is required to issue an invoice in respect of the supply of agricultural produce or an agricultural service shall, in respect of each such supply, issue an invoice in the form and containing such particulars (in addition to those specified in the said section 12A) as may be specified by regulations if the following conditions are fulfilled:

(a) the issue of an invoice is requested by a taxable person,

(b) the taxable person provides the form for the purpose of the invoice and enters the appropriate particulars thereon, and

(c) the taxable person gives to the flat-rate farmer a copy of the invoice.

but may issue the invoice if those conditions or any of them are not fulfilled.'.

(b) by the insertion, after sub-section (3), of the following sub-section:

‘(4) Where subsequent to the issue by a flat-rate farmer of an invoice in accordance with sub-section (2), the consideration as stated on the invoice is increased or reduced, or a discount is allowed, whichever of the following provisions is appropriate shall have effect:

(a) in case the consideration is increased, the flat-rate farmer shall issue another invoice (if the conditions referred to in subsection (2) are fulfilled in relation to it) containing particulars of the increase and of the flat-rate addition appropriate thereto and in such form and containing such other particulars as may be specified by regulations and such other invoice shall be deemed, for the purposes of section 12, to be issued in accordance with section 12A, but the said farmer may issue the invoice if the said conditions or any of them are not fulfilled.

(b) in case the consideration is reduced or a discount is allowed, the flat-rate farmer shall, if the person to whom the supply was made is a taxable person, issue a document (in this section referred to as "a farmer credit-note") containing particulars of the reduction or discount and in such form and containing such other particulars as may be specified by regulations, and the amount which the taxable person may deduct under section 12 shall, in accordance with regulations, be reduced by an amount equal to the amount of the flat-rate addition appropriate to the amount of the reduction or discount.',

(c) by the insertion after sub-section (6) of the following sub-section:

‘(6A) (a) If a person, other than a flat-rate farmer, issues an invoice stating an amount of flat-rate addition, he shall be liable to pay to the Revenue Commissioners as tax the amount of flat-rate addition stated and shall, in relation to such amount, be deemed, for the purposes of this Act, to be a taxable person.

(b) If a flat-rate farmer issues an invoice stating an amount of flat-rate addition otherwise than in respect of an actual supply of agricultural produce or an agricultural service or in respect of such a supply but stating a greater amount of flat-rate addition than is appropriate to the supply, he shall be liable to pay to the Revenue Commissioners as tax the amount or the excess amount, as the case may be, of the flat-rate addition stated and shall, in relation to such amount or such excess amount, be deemed, for the purposes of this Act, to be a taxable person.

(c) If a flat-rate farmer, in a case in which he is required to issue a farmer credit note under subsection (4) (b), fails to issue the credit note within the time allowed by regulations or issues a credit note stating a lesser amount of flat-rate addition than is appropriate to the reduction in consideration or the discount, he shall be liable to pay to the Revenue Commissioners as tax the amount of flat-rate addition which should have been stated on the credit note or the amount of the deficiency of flat-rate addition, as the case may be, and shall, in relation to such amount or such deficiency, be deemed, for the purposes of this Act, to be a taxable person.',

(d) by the insertion in subsection (8), after ‘subsection (1)' of ‘or subsection (2), as may be appropriate,',

(e) by the insertion in subsection (9), after paragraph (a), of the following paragraph—

‘(aa) Paragraph (a) shall not apply where the person who issued the invoice referred to therein was, at the time of its issue, a person authorised, in accordance with section 14 (1), to determine his tax liability in respect of supplies of the kind in question by reference to the amount of moneys received.',

(f) by the insertion in subsection (10) (a) after ‘another registered person' of ‘or agricultural produce or agricultural services are supplied to a registered person by a flat-rate farmer',

(g) by the insertion after subsection (11) of the following subsection:

‘(11A) Where a person who is entitled to receive a farmer credit note under subsection (4) (b) from another person issues to that other person, before the date on which a farmer credit note is issued by that other person, a document (in this section referred to as a farmer debit note) in such form and containing such particulars as may be specified by regulations, then, for the purposes of this Act—

(a) the person who issues the debit note shall, if the person to whom it is issued accepts it, be deemed to have received from the person by whom the debit note was accepted a farmer credit note containing the particulars set out in such debit note, and

(b) the person to whom such debit note is issued shall, if he accepts it, be deemed to have issued to the person from whom the debit note was received a farmer credit note containing the particulars set out in such debit note.',

(h) by the insertion in subsection (12) (a) (ii) before ‘services', of ‘goods or'., and

(i) by the insertion of the following subsection after subsection (12):

‘(13) The provisions of the Principal Act (other than this section) relating to credit notes and debit notes issued under subsections (2) and (11), respectively, of this section shall apply in relation to farmer credit notes and farmer debit notes as they apply in relation to the credit notes and debit notes aforesaid.'.".

I move amendment No. 1 to amendment No. 34:

In paragraph (i) to delete "the Principal" and to substitute "this".

Amendment agreed to.

I move amendment No. 2 to amendment No. 34:

In paragraph (i) to delete "(2)" after "subsections" and to insert "(3)".

Amendment agreed to.
Amendment, as amended, agreed to.

Acceptance of this amendment involves the deletion of section 14 of the Bill.

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