The Gazette 1973

(1) Is the vendor an accountable person selling in the course of business? (2) Has there been development since 31/10/72? (3 Is the price tax-exclusive or tax-inclusive? (4) Does the property fall within Section 3 (5) (b) (iii) that is certain sales of businesses as going concerns which will not be chargeable to VAT? Stamp duty is chargeable on the gross price inclusive of VAT. A vendor who is doubtful whether or not VAT will be chargeable in relation to a particular sale may apply to the Revenue Commissioners for a certificate in this regard. The Commissioners will require a full statement of the relevant facts in relation to the property in ques- tion and on the basis of the facts as so supplied will indicate whether or not VAT would be chargeable if delivery were made on a particular date. Members are reminded that this is necessarily an incomplete summary intended to alert them to the provisions of the Act. They should refer to the Statutes, Regulations and Guide for full information on the subject. This article supersedes the circular letter already- issued in which it was not sufficiently clear that VAT applies only to property which aas been the subject of development. For convenience, the text of Mr. Egans letter is printed here : Value-Added Tax Dear Mr. Plunkett, Thank you for the revised draft of the circular. I think you will find that adequate provision is made in section 34 of the VAT Act to prevent double taxa- tion in relation to a property deal which straddles the commencement date for VAT. Assume, for example, a contract by a builder to erect a private residence for a customer for a tax-inclusive consideration of £10,000: the value of the work-in-progress on November 1st, 1972, was £7,000 and £5,000 had been paid by the customer. The builder's liability on completion of the house will be as follows :

Turnover tax and wholesale tax 3% of 7,000 92.95 Total £302.95 You will see, therefore, that the element of double taxation is insignificant. I would emphasise again that the Revenue Com- missioners consider that the treatment of the creation of rents is adequately dealt with in Regulation 20 of the VAT Regulations, 1972, and they do not intend to issue any special statement in this regard. Yours sinc.erelv, P. J. Egan Principal Inspector of Taxes Office of the Revenue Commissioners Dublin Castle 23rd December 1972 Practice Notice In all Malicious Injury Applications before his Honour Judge Deale it is necessary for the Claimants' Solicitor to be present in Court when the case is called as other- wise costs will not be awarded. This has been the prac- tice on the Eastern Circuit for some years. Notice -E.E.C. Lectures If sufficient numbers of members ask for photocopies of the lectures delivered in the Burlington Hotel, Dublin, on E.E.C. Restrictive Practices Law, on Council of Company Mergers, and on Patents, Know-How and Trade Marks given by Dr. Gleiss and Dr. Helm on 27 January 1973, it may be possible to supply them at a reasonable rice. Members would have to pay nearly £ 8 if they ordered single photocopies of these lectures. Requests for photocopies should be made to the Secretary. Land Registration Rules 1972 In the December 1972 Gazette, at page 275, the fees in Part I of the Schedule of Go:;ts are :et out. It has been pointed out that these fees are strictly subject to Rule 234 of the Land Registration Rules, which sets out in detail the circumstances in which the fees charged shall only be half those stated. ii The Income Tax Acts The SIXTH SUPPLEMENT to the loose-leaf volume 'The Income Tax Acts" has now been published — price 27}p (postage 5|p 210.00 Net VAT liability extra). The Supplement embodies the amendments made by the Finance Act, 1972. Available from the Government Publications Sale Office, G.P.O. Arcade, Dublin 1.

£ 10,000.00 5,000.00 5,000.00 152.95 4,847.05 152.95

Contract price Less paid prior to November 1st Balance of consideration Less VAT deemed to be included £5,000 @ 3.059% Consideration liable to VAT VAT @ 3.156% Less Relief under Section 34 : Value of W-in-P on 1 /11 / 72

£7,000 £5,000

Paid on account

Balance being undelivered W-in-P

£2,000 @ 3 %

60.00

Net VAT liability 92,95 The total turnover tax and wholesale tax included in charges for building work has been estimated to be 3%, and it may be assumed, therefore, that when the builder quoted a tax-inclusive price of £10,000 for the house he included therein approximately £300 for tax. This will cover the total of the turnover tax, wholesale tax and VAT which he will bear or pay as follows:

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