This section introduces a new Fourth Schedule to the VAT Act. It specifies the services which, in accordance with section 5, are to be taxed where the customer is established or resides, that is, on the " destination principle ". The list of services to be so treated is prescribed in the directive and the new Schedule simply incorporates this list.
SECTION 22.
Question proposed: " That section 22 stand part of the Bill."
I have certain reservations about placing VAT at the rate of 10 per cent on agricultural shows. Many of us who come from rural Ireland know how difficult it is for these shows to exist. Generally they are run at a financial loss.
We found earlier that where there was a horse jumping competition in addition to the show, VAT did not apply. In that event it would not be hard for the vast majority of shows to have such competitions to ensure that VAT would not apply. Is this not right?
The Minister has already dealt with that at a previous meeting.
Are we absolutely sure it comes in under this?
It does not. It is in the report.
As a matter of interest, what about a bird show? We had a bird show in Tipperary recently—the feathered type. There is no sporting activity associated with that.
It has to be done by somebody in the course of business and to be somebody in the bracket over £500 for two monthly returns.
Question put and agreed to.