Revenue Note for Guidance

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Revenue Note for Guidance

PART 18E

DEFECTIVE CONCRETE PRODUCTS LEVY

Overview

This Part provides for the introduction of a Defective Concrete Products Levy. The levy is calculated at 5% of the open market value of the products in scope of the levy on the date of their first supply. The concrete products within the scope of the levy are concrete that is ready to pour and two types of masonry units which are required to comply with certain Harmonised European Standards as referenced in the Official Journal of the European Union (or any adopted national version of such Harmonised European Standard). The legislation provides that a person in the State making the first supply of a concrete product within scope of the levy will be a chargeable person in respect of the levy and will be accountable for and liable to pay the levy and to make returns to the Revenue Commissioners. The legislation requires chargeable persons to register with the Revenue Commissioners for the levy, prior to their first supply of a concrete product after the commencement of the legislation. The legislation provides that a specified person may make a declaration to a chargeable person for a supply of ready to pour concrete to be used in the manufacture of precast concrete products with effect from 1 January 2024. Where a declaration is made by a specified person the ready to pour concrete so used will not be chargeable to the levy. Chargeable persons are required to file bi-annual returns electronically with the Revenue Commissioners declaring their liability to the levy and to pay those amounts to the Collector General. All books, records and linking documents used in ascertaining the basis for the liability for the levy must be retained by the chargeable person. The levy operates on a self-assessment basis and the legislation includes provisions for the making and amending of assessments, the making of enquiries and for the right of appeal. The levy applies to the first supply of concrete products made on or after 1 September 2023. A specified person, who has incurred the levy on ready to pour utilised in the manufacture of a precast concrete, in the accounting period 1 September 2023 to 31 December 2023, may make a claim for a repayment of the levy.

531AAG Interpretation (Part 18E)

Summary

This section contains the definitions used in Part 18E in relation to the defective concrete products levy.

Details

“accounting period” means the period from 1 September 2023 to 31 December 2023 and thereafter a period of 6 months beginning on 1 January 2024;

“chargeable person” is a person who makes the first supply of a concrete product;

“chargeable supply” for a concrete product is the supply –

  • within the meaning of paragraph (a) of the definition of “supply” of a concrete product in the course of a business carried on in the State by a person,
  • within the meaning of paragraph (b) of the definition of “supply” of a concrete product by a person in the State, or
  • within the meaning of paragraph (c) of the definition of “supply” of a concrete product by a person in the State;

“concrete” means material formed by mixing cement, coarse or fine aggregate (or any combination thereof) and water, with or without the incorporation of admixtures, additions or fibres, which develops its properties by hydration;

“concrete product” means –

  • a product:
    • that contains concrete, and
    • is of a type that is required to comply with the standard specified in column (1) of Schedule 36, and is a type as set out in Schedule 36
    or
  • concrete that is ready to pour;

“connected person” has the meaning assigned to it by section 10;

“defective concrete products levy” is as set out in section 531AAH;

“electronic means” has the meaning assigned to it by section 917EA(1);

“first supply” means a chargeable supply of a concrete product where there has been no previous supply;

“linking documents” has the meaning assigned to it by section 886(1);

“precast concrete product” means a product that:

  • contains concrete
  • is manufactured in a specially equipped facility through a process of casting the concrete in a reusable mould or form and curing the concrete in a controlled environment
  • following manufacture is transported from the facility—
    • to a premises or place in or on which the product is made available for wholesale or retail sale,
    • a construction site or
    • its final destination of use,
  • and
  • is manufactured as part of a trade which consist of the manufacture of such products, for supply to customers, where the trade is ordinarily carried on in a facility in which manufacturing process takes place;

“records” has the meaning assigned to it by section 886(1);

“self-assessment” means an assessment by a chargeable person of the amount of defective concrete products levy payable by that person in accounting period;

“specified person” means a person who acquires a first supply of ready to pour concrete which is used by that person in the manufacture of a precast concrete product;

“supply” for a concrete product means –

  • the transfer of ownership by agreement or sale,
  • the assignment of the product for use in a business other than as set out in paragraph (a), or
  • the use, either privately or in a business, in the State of a concrete product;

“supply date” is the date of first supply of a concrete product.

“tax reference number” has the meaning assigned to it by section 891B or the meaning assigned by section 891F to a TIN.

Relevant Date: Finance Act 2024