Revenue Precedents

A UK company with no presence in Ireland sends a PBX system to a factory in this State. A Dublin company supplies a component to the foreign company which is delivered directly to the factory in the State. VAT at 21% would normally apply to such a supply. The component is soldered into a finished product which is sent back to the UK. Can the zero-rate apply? Provided the supplier has evidence that the goods have been transferred to a VAT-registered customer in another Member State then the zero rate can apply. A/228 (B)

A computer system is purchased within the State by a company for subsequent transport to, and installation in, its offices in another EU State. Where the computer system is retained in the State for a period of training and testing before being exported out of the State, does the zero per cent rate of VAT due to exports still apply? Subject to the condition that the equipment would be transported outside the State for final installation after a period, the zero per cent rate of VAT was allowed. A/228

Whether an increase in the VAT rate could be deferred. The application of an increased VAT rate was deferred for two months in the case of residential customers and one month in case of non-residential customers, given the difficulty of distinguishing between customers and charges attracting different rates. A/272 (A)

Where films (liable at the standard rate) are sold with processing costs (liable at 12.5%) included, does the package rule apply, whereby the entire supply is liable at the higher rate of VAT? An apportionment of the consideration on a 50/50 basis between that due on the supply of the film, and due on the processing, is allowed. Therefore, 50% of the consideration is liable at the standard rate of VAT, and 50% is liable at the reduced rate of VAT. A/108

Whether the inclusion of a small bottle of wine with tubs of spread in a marketing campaign for an all-inclusive price makes the whole supply liable at the standard rate of VAT? Provided the items were listed separately on the invoice, showing the different rates of VAT applying to each, the package rule was not invoked. A/268

Whether the package rule applies to the supply of a (musical) card and lottery ticket packaged together for a single consideration. An apportionment is allowed whereby a calculated consideration in respect of the retail value of the card is liable to VAT at the standard rate, and the balance of the consideration is exempt from VAT. A/430 (B)

Whether the package rule applies to food hampers that contain goods rated variously at the standard and reduced rates of VAT. Provided that the supplier keeps an accurate record in his books of the goods supplied at the various rates of VAT, apportionment of the rates is allowed as though the goods were supplied singly. A/430 (A)

What rate of VAT applies to a service charge made in respect of door-to-door milk deliveries? The zero rate of VAT applies, as the service charge is seen as inclusive in, and incidental to, the supply of milk. A/417

Whether an antibiotic, which can be administered both orally and by injection, qualifies for the zero per cent rate of VAT?

The zero per cent rate of VAT applies as the antibiotic in question can be used in all cases as medicine of a kind for animal oral consumption. This rating does not apply to medicine that is packaged, sold, or otherwise designated for the use of dogs, cats, cage birds or other domestic pets. A/90 (B)

Whether an antibiotic, which can be administered both orally and by injection, qualifies for the zero per cent rate of VAT? The zero per cent rate of VAT applies as the antibiotic in question can be used in all cases as medicine of a kind for animal oral consumption. This rating does not apply to medicine that is packaged, sold, or otherwise designated for the use of dogs, cats, cage birds or other domestic pets. A/90 (B)

Whether bread rolls and Vienna rolls, the fat content of which marginally exceeded the 2% limit of the weight of the flour included in the dough, qualified for the zero per cent rate of VAT.

As the fat content exceeded the permitted limit only by a marginal amount (i.e. 2.35% instead of 2%) the zero per cent rate of VAT applies. N.B. Generally, where the fat content is under 6%, no account is taken of the excess quanity. A/64 (E)

What rate applies to a powder product, to be mixed with a liquid and drank, which is marketed as a meal replacement? The zero per cent rate of VAT applies since, being a meal replacement, it is considered to be zero-rated food. A/64 (D)

Goods supplied in the State by Irish traders to a shipper for bulk export for promotional purposes.

Such goods were zero-rated subject to the proof of export being retained by the supplier. A/56

What rate of VAT applies to the supply of a freeze-dried human blood component in kit form supplied with saline, a transfer needle and an infusion set for intravenous administration? The supply of the kit is exempt from VAT. A/394

What rate of VAT applies to the provision of a traditional Christmas dinner with the availability of dancing facilities? The entire charge for the meal and dancing facilities is liable to VAT at 12.5%, as the dancing facilities are regarded as incidental to the supply of the meal. A/151