There is nothing new in this eBrief. The original information had been included in eBrief No. 6/09 (included in ICAI Tax of 19 January 2009), which provided details on the transitional measures.
For ease of reference, the relevant parts of the story from 19 January are reproduced below.
“Section 7B VAT Act 1972 deals with transitional measures for short term lettings of immovable goods where a waiver of exemption applied. The Revenue Notes for Guidance advises that the waiver of exemption rules with regard to short-term lettings and the cancellation rules in respect of such waivers continue to apply to any lettings in place before and on 1 July 2008 except where it is a letting between connected parties.
The purpose of the provisions in the Finance (No. 2) Act 2008 is to ensure that connected persons cannot use the grouping provisions to avoid the rules in section 7B for lettings between connected persons where a waiver of exemption has been exercised.
The eBrief provides for two situations:
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I. Where the landlord enters the group between 1 July 2008 and the date of passing of the Finance (No. 2) Act 2008 (i.e. 24 December 2008), a waiver cancellation adjustment is triggered and the person in the group liable to account for VAT (the group remitter) is liable to pay the cancellation amount as if it were tax due in the taxable period in which the Act is passed (i.e. Nov/Dec 2008).
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II. Where the landlord enters the group after the date of passing of the Finance (No. 2) Act 2008 (i.e. 24 December 2008), a waiver cancellation adjustment is triggered and the person in the group liable to account for VAT (the group remitter) is liable to pay the cancellation amount as if it were tax due in the taxable period in which the landlord enters the VAT group.”
The relevant part of the VAT Manual is available http://www.revenue.ie/en/about/foi/s16/vat/chpt-07b/index.html.